EPSILON ENERGY Reports Second Quarter FY2023 Earnings Results on August 11 2023
August 14, 2023
☀️Earnings Overview
EPSILON ENERGY ($NASDAQ:EPSN) reported their earnings results for the second quarter of FY2023, which ended on June 30 2023, on August 11 2023. The company’s total revenue for the quarter was USD 6.5 million, representing a decrease of 67.3% from the same quarter in FY2022. Net income for the quarter was USD 0.43 million, a drop of 95.9% from the second quarter of the previous year.
Stock Price
The stock opened at $6.2 on the day and closed at $5.8, which was a drop of 7.3% from its closing price of $6.3 the day before. This news caused the stock to take a tumble as investors interpreted the results as not meeting expectations.
However, EPSILON ENERGY‘s balance sheet showed signs of weakness due to an increase in long-term debt and a decrease in cash and cash equivalents. This led some investors to worry about the company’s financial stability going forward. Overall, EPSILON ENERGY’s second quarter FY2023 earnings results were somewhat mixed. While the company reported solid top line growth and improved adjusted EBITDA, the decrease in stock price and weak balance sheet indicate that more work needs to be done if the company wants to achieve long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Epsilon Energy. More…
| Total Revenues | Net Income | Net Margin |
| 52.32 | 22.93 | 42.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Epsilon Energy. More…
| Operations | Investing | Financing |
| 32.44 | -42.89 | -11.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Epsilon Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 121.15 | 18.52 | 4.55 |
Key Ratios Snapshot
Some of the financial key ratios for Epsilon Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.4% | 107.3% | 58.4% |
| FCF Margin | ROE | ROA |
| 30.6% | 18.4% | 15.8% |
Analysis
GoodWhale has conducted an analysis of EPSILON ENERGY‘s fundamentals and found that it is classified as ‘rhino’, which indicates moderate revenue or earnings growth. This means that EPSILON ENERGY would be of interest to investors seeking steady, reliable returns. Moreover, it has a high health score of 10/10 with regard to its cashflows and debt, suggesting that it is well-positioned to sustain future operations in times of crisis. Additionally, EPSILON ENERGY is strong in asset, profitability, and medium in dividend, growth. All of these factors make it an attractive option for long-term investors looking for a solid portfolio addition. More…
Peers
Epsilon Energy Ltd is an oil and gas company with a focus on horizontal drilling in the Marcellus Shale. The company is headquartered in Calgary, Alberta, Canada. Epsilon Energy Ltd’s competitors include Black Dragon Resource Companies Inc, Carbon Energy Corp, and Whiting Petroleum Corp.
– Black Dragon Resource Companies Inc ($OTCPK:BDGR)
Carbon Energy Corp is a coal mining company with a market cap of 20.76k as of 2022. The company has a Return on Equity of -36.04%. Carbon Energy Corp is engaged in the business of mining, processing and selling coal. The company has operations in Australia, Indonesia and China.
Summary
EPSILON ENERGY recently announced their second quarter earnings results for FY2023, ending June 30 2023. Total revenue dropped by 67.3% compared to the same quarter last year, with net income at 95.9% lower. The news had an immediate impact on the company’s stock price, and investors may be wary of investing in EPSILON ENERGY in the short-term. As such, it may be wise to wait and observe the company’s performance in the coming months before making any decisions.
Investors should also conduct a thorough analysis of EPSILON ENERGY’s financials, such as their balance sheet and cash flow statement, to better understand their financial health. Moreover, it may be beneficial to research any potential competitors and the industry as a whole to identify any possible opportunities or risks.
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