Epsilon Energy Corrects Q2 Loss After Revising Asset Sales Accounting

Epsilon Energy Ltd. (NASDAQ: EPSN) has corrected its second quarter FY26 financial results, revising its adjusted net income to a loss of $0.03 per share from previously reported earnings of $0.05.

The company attributed the correction to the recategorization of sale proceeds from asset sales, which had no basis, from other income to gain on asset sales to align with its definition of adjusted net income.

Total revenue for the quarter rose 57% year-on-year to $18.3 million, driven by higher realized prices for oil and natural gas liquids, but adjusted EBITDA contracted 21% YoY to $5.8 million due to a sharp decline in gas revenues despite price tailwinds in other commodities.

The company ended the quarter with total debt of $40.5 million and cash plus short-term investments of $11.7 million.