Epsilon Energy Ltd (EPSN) Stock AnalysisEPSNStock AnalysisEpsilon Energy Ltd

Epsilon Energy Ltd. is an onshore focused independent natural gas and oil production and gathering company with assets in Wyoming, Pennsylvania, Texas, Alberta and New Mexico. The Company is engaged in the acquisition, development, gathering and production of natural gas and oil reserves. It conducts operations in the United States through its wholly owned subsidiaries Epsilon Energy USA Inc., Epsilon Midstream, LLC, Epsilon Operating, LLC, and Altolisa Holdings, LLC. Its assets include Marcellus Shale Assets, Permian Basin Assets, Powder River Basin Assets, and Western Canadian Sedimentary Basin Asset. The Company owns an interest in approximately 11,600 gross acres (5,100 net acres) within the gas in place (GIP) window of the Marcellus Shale in Northeast Pennsylvania. It also owns an interest in 16,000 gross acres (4,000 net acres), targeting the oil-rich Barnett Shale. It also holds a 35% interest in the Auburn Gas Gathering System, located in Susquehanna County. It operates in the Energy sector (CRUDE PETROLEUM & NATURAL GAS industry).

Epsilon Energy Ltd is a good buy right now due to its recent strong financial performance, including a 75% increase in adjusted EBITDA year-over-year and a current price of $6.02, which is below the analyst price target of $6.16. However, the main risk is its negative earnings per share of -0.03 reported in the last earnings, which could affect investor sentiment.