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Summary Epsilon Energy Ltd. (the Company or Epsilon or we ) was incorporated under the laws of the Province of Alberta, Canada on March 14, 2005, pursuant to the ABCA. The Company is extra-provincially registered in Ontario pursuant to the Business Corporations Act (Ontario).
The business is unprofitable at the operating level (-20.39% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 63.7%, still solid. Margins contracted 31.3pp, which offsets some of the top-line progress.
ROIC dropped from 1.81% to -7.47%, capital efficiency is deteriorating. Operating margin contracted 31.3pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$61M
▲ +63.7% YoY
Net Income (TTM)
-$9M
▼ -400.8% YoY
Op. Margin
-11.27%
▼ -31.3pp YoY
ROIC
-4.82%
▼ -9.3pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
$22M
▲ +22.5% YoY
Net Debt
-$7M
Net Cash Position
Cash & Equiv.
$8M
5Y CAGR: +16.1%
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