Epsilon Energy Ltd (EPSN) 2023 Q3 法說會逐字稿

Good morning and welcome to the Epsilon Energy third-quarter 2023 earnings conference call. All participants will be in listen-only mode. (Operator Instructions)

早安，歡迎來到Epsilon Energy 2023年收入電話會議。所有參與者將處於僅聽模式。 （操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead.

請注意此事件正在被記錄。我現在想將會議交給財務長安德魯威廉森（Andrew Williamson）。請繼續。

Thank you, operator. And on behalf of the management team, I would like to welcome all of you to today's conference call to review Epsilon's third-quarter 2023 financial and operational results.

謝謝你，接線生。並代表管理團隊，我想歡迎大家參加今天的電話會議，以審查Epsilon的2023年第三季財務和營運業績。

Before we begin, I'd like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause Epsilon's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.

在開始之前，我想提醒您，我們的評論可能包括前瞻性陳述。應該指出的是，多種因素可能導致Epsilon的實際結果與這些前瞻性陳述中表達的預期結果或期望有重大不同。

Today's call may also contain certain non-GAAP financial measures. Please refer to the earnings release that we issued yesterday for disclosures on forward-looking statements and reconciliations of non-GAAP measures.

今天的電話也可能包含某些非GAAP財務指標。請參閱我們昨天發布的收益發布，以了解有關非GAAP措施的前瞻性陳述和對帳的披露。

With that, I'd like to turn the call over to Jason Stabell, our Chief Executive Officer.

這樣，我想將電話交給我們的執行長傑森·斯塔爾（Jason Stabell）。

Thank you, Andrew. Good morning, everyone, and thank you for participating in the Epsilon Energy third-quarter 2023 conference call. Joining me today are Andrew Williamson, our CFO, and Henry Clanton our COO. We will be available to answer questions later in the call.

謝謝你，安德魯。早安，大家好，感謝您參加Epsilon Energy 2023年第三季電話會議。今天加入我的是安德魯威廉森（Andrew Williamson），我們的財務長和我們的營運長亨利克蘭頓（Henry Clanton）。我們將在稍後在通話中回答問題。

Our press release and 10-Q posted yesterday provide details on our business results. Today, I'd like to discuss several key highlights since our last quarterly release in August. First, and most importantly, we are excited about our recent and planned near-term development investments in Pennsylvania and Texas.

我們的新聞稿和昨天發布的10-Q發布提供了有關我們業務業績的詳細資訊。今天，我想討論自八月上一次季度發布以來的幾個關鍵亮點。首先，最重要的是，我們對賓州和德州近期的近期發展投資感到興奮。

Alongside our operating partners, we're planning a more robust CapEx budget for the next 12 months relative to the last few years, which will add significant volume growth in both liquids and natural gas. We are already underway in Pennsylvania, having recently elected to participate in seven wells. Henry can add more detail here.

與我們的營運合作夥伴一起，我們計劃在過去的12個月內相對於最近幾年的更強大的資本支出預算，這將增加液體和天然氣的大量增長。我們已經在賓州正在進行，最近選擇參加七口井。亨利可以在這裡添加更多細節。

In Texas, we've recently completed our first two wells and activity will continue in 2024 on our large contiguous leasehold position that we acquired earlier this year. It's approximately 11,000 acre gross position where we hold a 25% interest, sits in close proximity to the two recently drilled and completed wells. Our 2024 plans will begin to unlock the value potential of this large asset.

在德克薩斯州，我們最近完成了前兩口井，活動將在2024年繼續以今年早些時候獲得的大型連續租賃職位繼續。大約有11,000英畝的總職位，我們持有25％的利息，靠近最近鑽孔並完成的井。我們的2024年計畫將開始釋放這項大資產的價值潛力。

We have hedged a portion of our natural gas production for the next 12 months and will monitor the oil market to potentially do the same with a portion of the crude volumes coming on in the Permian.

在接下來的12個月中，我們將一部分天然氣生產對沖，並將監測石油市場可能會在二疊紀的一部分粗卷中進行相同的事情。

Finally, we continue to prioritize shareholder returns through our well-supported dividend and opportunistic share purchases. These returns totaled over $4 million for the quarter, including a 525,000 share purchase at $5 per share in July and our $1.4 million quarterly dividend paid in September.

最後，我們繼續透過支持良好的股息和機會主義股票購買來確定股東回報。這些季度的回報總額超過400萬美元，其中7月以每股5美元的價格購買了525,000美元的股票，以及我們9月支付的140萬美元的季度股息。

Now I'd like to turn the call over to Andrew and Henry for some more detailed comments on our finances and operations.

現在，我想將電話交給安德魯和亨利，以對我們的財務和營運進行一些更詳細的評論。

Thanks, Jason. As Jason just mentioned, we put on some gas hedges over the last 45 days, swaps for NYMEX Henry Hub and our basis at Tennessee Gas Pipeline Zone 4. Details are included in the press release posted yesterday. We wanted to take some risk off based on potential downside we see to the forward curve and looking ahead to the capital program over the next 12 months.

謝謝，傑森。正如傑森（Jason）剛才提到的那樣，我們在過去的45天中放了一些燃氣籬笆，Nymex Henry Hub的掉期和我們在田納西州天然氣管道區的基礎。昨天發布的新聞稿中包括了詳細資訊。我們希望根據潛在的缺點來承擔一些風險，從而在未來12個月內看到了前進曲線，並展望資本計劃。

Approximately 25% of our forecasted volumes through October 2024 are hedged. With our balance sheet, we're comfortable with that exposure level at current forward prices. With our first two wells online in Ector County, we would look at hedging a portion of our crude volumes this quarter, depending on forward prices.

到2024年10月，我們約有25％的預測量是對沖的。有了我們的資產負債表，我們對當前遠期價格的曝光水準感到滿意。借助我們在Ector County的前兩口井，我們將根據遠期價格來對沖本季的部分原油。

We're excited about our recent and upcoming drill bit investments. It's shaping up to be one of the most active periods for the company in the last several years. I'll let Henry talk about the operations aspect, but the plan is for $15 million to $20 million in CapEx from the fourth quarter of this year through the first half of next year, depending on the pace of development in Ector County.

我們對最近和即將進行的鑽頭投資感到興奮。這是過去幾年中該公司最活躍的時期之一。我將讓亨利談論營運方面，但該計劃的資金為1500萬至2000萬美元，從今年的第四季到明年上半年，這取決於埃克特縣的發展速度。

That spend is roughly split evenly between PA and the Permian. All of this will be comfortably funded from our existing cash on hand and cash flow. We expect the associated incremental cash flows to make a meaningful impact starting in the fourth quarter with the first two wells online in the Permian.

這筆支出在PA和二疊紀之間大致平均分配。所有這些都將從我們現有的現金和現金流中舒適地資助。我們希望相關的增量現金流在第四季度從二疊紀的前兩個井開始產生有意義的影響。

We continue to spend a big part of our time on business development, looking for investment opportunities outside of our existing asset base. We would like to add another area to deploy capital, but remain disciplined in our evaluation process. Hopefully, we'll have something to report there next year.

我們持續將大部分時間花在業務發展上，尋找現有資產基礎以外的投資機會。我們想添加另一個領域以部署資本，但在我們的評估過程中保持紀律處分。希望明年我們要在那裡報告。

Now to Henry for comments on the operations.

現在向亨利發表評論。

Thank you, Andrew. As Jason mentioned earlier, the company is pleased to report our election to participate in the seven wells in Pennsylvania over the next nine months. These wells are representative of our inventory and are expected to provide meaningful volume contribution by mid year. The first three wells have been drilled and are waiting for completion scheduled for Q1 of 2024. The remaining four wells are expected to be drilled by year end with completion scheduled for the first half of 2024 as well.

謝謝你，安德魯。正如傑森（Jason）前面提到的那樣，該公司很高興地報告我們在接下來的九個月中參加賓夕法尼亞州的七井。這些井代表我們的庫存，並有望在中旬之前提供有意義的數量貢獻。前三口井已經進行了鑽探，並正在等待計劃在2024年第1季度完成的完成。其餘的四口預計將在年底之前鑽探，並安排在2024年上半年完成。

In our Permian Basin project, the first two appraisal wells have been completed and flowback operations began in mid October. Preliminary results are encouraging as both wells have achieved peak rates consistent with our type curve expectation in less than 30 days. Plans are now being finalized to drill up to four additional appraisal wells next year.

在我們的二疊紀盆地計畫中，前兩個評估井已經完成，並且重新業務始於10月中旬。初步結果令人鼓舞，因為這兩個井都達到了與我們類型曲線在不到30天內的預期一致的峰值率。目前，計劃正在完成計劃，明年最多可進行四次評估井。

As Jason mentioned, this project has significant runway. We estimate 20 to 30 gross locations and is expected to add meaningfully to the company's liquids mix and cash flows going forward. And finally, all wells that were shut in during the third quarter on the [Cromlin] pad for remedial well work have been returned to production late September.

正如傑森（Jason）所提到的那樣，這個項目具有重要的跑道。我們估計位置20到30個，預計將有意義地增加公司的液體混合和現金流量。最後，第三季在[Cromlin]墊上關閉的所有井都已經在9月下旬返回生產。

Now back to Jason.

現在回到傑森。

Thanks, guys. Operator, we can now open the line for questions.

多謝你們。運營商，我們現在可以打開問題。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。 （操作員說明）

Showing no questions, this concludes our question-and-answer session. I would like to turn the conference back over to Jason Stabell for any closing remarks.

沒有任何疑問，這是我們的問答環節的結論。我想將會議轉回傑森·斯塔爾（Jason Stabell）進行任何閉幕詞。

Thank you, Gary, and I want to thank everyone for joining us today for the third-quarter call. We look forward to updating you on the progress on these plans, and we hope you have a great Friday and a nice weekend. Thank you.

謝謝加里（Gary），我要感謝大家今天加入我們的第三季電話。我們期待您在這些計劃的進度上更新您，並希望您度過一個愉快的星期五和一個愉快的周末。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。