Epsilon Energy Ltd. (NASDAQ: EPSN) announced that its Board of Directors has approved a new one‑year share repurchase program. The program authorizes the company to repurchase up to 3,014,986 common shares—about 10% of outstanding shares—for a maximum aggregate purchase price of $15 million. The buyback will begin on February 19, 2026 and run through February 18, 2027, replacing a prior program that expired on February 11, 2026.
Epsilon Energy’s financial profile underscores the significance of the buyback. The company reported an operating margin of 10.9% and total revenue of $31.5 million as of February 26, 2026, with a market capitalization of roughly $146.8 million and a debt‑to‑equity ratio of zero. In its most recent quarterly report, the company posted earnings per share of $0.09—well above the consensus estimate of $0.03—while revenue of $8.98 million fell short of the $11.50 million estimate. The earnings beat reflects disciplined cost management and a favorable mix of upstream and gathering‑system operations, whereas the revenue miss points to softer demand in the broader natural‑gas market.
The board’s decision to fund the buyback entirely from available cash, without incurring debt, signals confidence in the company’s liquidity and cash‑flow generation. By reducing the share count, the program is expected to lift earnings per share and support the stock’s valuation, reinforcing management’s view that the current market price does not fully reflect the underlying value of the company’s assets and operations.
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