Epsilon Energy (EPSN) EnerCom Denver – The Energy Investment Conference summary

Operational efficiency and technology

• Average lateral length of wells increased 38% since 2022, with nearly 70% of 2026 wells expected to be 3 miles or longer.

• Drilling and completion costs per foot have declined by about 25% when moving from 2-mile to 4-mile laterals.

• Longer laterals are reducing overall production decline rates, freeing up more cash flow for dividends and reinvestment.

• Proprietary Illuminous platform integrates data across accounting, land, finance, engineering, and operations, supporting scalability and efficiency.

• General and administrative costs per BOE have declined as production has increased, demonstrating platform scalability.

Asset portfolio and development strategy

• Portfolio includes interests in over 7,800 wells across Williston, Powder River, and DJ basins, with disciplined investment and balance sheet management.

• Over a decade of priority one development inventory with 115 net locations, plus additional inventory that could be accelerated via trades or partnerships.

• Powder River Basin assets acquired in late 2025, adding operated oil and gas targets and a highly experienced management team.

• 40,000 net acres in Powder River Basin, 75% HBP, allowing for targeted and patient development.

• Recent completions in Niobrara and Parkman formations have met or exceeded expectations, with further development and infrastructure underway.

Permian and Marcellus asset highlights

• Permian assets include a 25% working interest in 16,500 acres, mostly undeveloped, with activity ramping under new operator Firebird II.

• 30 Barnett locations remain to be drilled, with costs expected to decline and a Woodford test well underway.

• Marcellus position in southwest Susquehanna County remains core, with 170–200 Bcf of undeveloped net reserves and ongoing development.

• Gathering system in northeast Pennsylvania processes gas from multiple operators, with EBITDA margins of 65–75% and expansion plans for 2028 and beyond.