EPSNHIGH SIGNALFINANCIAL10-K

EPSN underwent substantial balance sheet expansion with total assets nearly doubling, accompanied by a significant increase in outstanding shares and major changes to reserve reporting methodology.

The company appears to have completed a major transaction or restructuring, evidenced by the dramatic asset base expansion and 37% increase in shares outstanding (from 22M to 30.2M shares). The shift from detailed geographic operational descriptions to standardized industry definitions suggests a strategic refocusing or simplification of business operations.

Comparing 2026-03-27 vs 2025-03-19View on EDGAR →
FINANCIAL ANALYSIS

EPSN's financial profile transformed substantially, with total assets nearly doubling to $228.2M while stockholders' equity grew more modestly to $124.7M, indicating significant new asset acquisition or development. Operating cash flow grew solidly to $20.6M and cash position strengthened to $9.0M, suggesting the underlying business performance remained healthy despite the major structural changes. The combination of asset expansion, share dilution, and operational restructuring signals a company in significant transition.

FINANCIAL STATEMENT CHANGES
Total Assets
Balance Sheet
+89.5%
$120.5M$228.2M

Asset base grew 89.5% — expansion through organic growth, acquisitions, or capital deployment.

Interest Expense
P&L
+58.3%
$51K$80K

Interest expense surged 58.3% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
+37.4%
$6.5M$9.0M

Cash position surged 37.4% — strong cash generation or capital raise providing significant financial cushion.

Stockholders Equity
Balance Sheet
+29%
$96.7M$124.7M

Equity base grew 29% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
+22.5%
$16.8M$20.6M

Operating cash flow grew 22.5% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-27
PRIOR — 2025-03-19
ADDED
There were 30,239,980 Common Shares (no par value) outstanding as of March 26, 2026.
Mcfe One thousand cubic feet equivalent, used in reference to natural gas.
One Mcf of natural gas equivalent, converting one Bbl of oil or natural gas liquids at the ratio of one Bbl of oil or natural gas liquids to 6 Mcf of natural gas.
SOFR The Secured Overnight Financing Rate that is generally published by the Federal Reserve Bank of New York.
At December 31, 2025, Epsilon s total estimated net proved reserves were 86.4 Bcf of natural gas reserves, 9.3 MMBbls of oil reserves, and 2.4 MMBbls of NGL reserves.
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REMOVED
There were 22,008,766 Common Shares (no par value) outstanding as of March 18, 2025.
Net production The total production attributable to the fractional working interest owned.
At December 31, 2024, Epsilon s total estimated net proved reserves were 69,401 million cubic feet of natural gas reserves, 876,808 barrels of NGL reserves, and 1,572,465 barrels of oil and other liquids.
Epsilon holds leasehold rights to approximately 102,506 gross (23,602 net) acres.
The Company has natural gas production in the Marcellus Shale in Pennsylvania; oil, natural gas liquids and natural gas production in the Permian Basin in Texas and New Mexico, the NW Anadarko Basin in Oklahoma; and oil production in the Western Canadian Sedimentary Basin in Alberta, Canada.
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