Epsilon Energy Ltd 2026年季度报告

FORM10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 ☐TRANSITION REPORT PURSUANT TO SECTION13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period fromto Commission file number: 001-38770 EPSILON ENERGY LTD.(Exact name of registrant as specified in its charter) (I.R.S Employer Identification No.) 500 Dallas Street, Suite 1250Houston, Texas 77002(281) 670-0002(Address of principal executive offices including zip code andtelephone number, including area code) Securities registered pursuant to Section12(b)of the Act: Trading SymbolEPSN Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d)of the Securities Exchange Act of 1934during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filingrequirements for the past 90days. Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405 ofRegulation S-T (§ 232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit suchfiles). Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or anemerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growthcompany” in Rule12b-2 of the Exchange Act. Large accelerated filer◻Accelerated filer◻Non-accelerated filer⌧Smaller reporting company☒Emerging growth company◻ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act. Yes☐No⌧ Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes☐No⌧ As of August 11, 2026, there were 30,283,779 Common Shares outstanding. Table of Contents ContentsFORWARD-LOOKING STATEMENTSPART I-FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSUnaudited Condensed Consolidated Balance SheetsUnaudited Condensed Consolidated Statements of Operations and Comprehensive IncomeUnaudited Condensed Consolidated Statements of Changes in Shareholders’ EquityUnaudited Condensed Consolidated Statements of Cash FlowsNotes to the Unaudited Condensed Consolidated Financial Statements1.Description of Business2.Basis of PreparationInterim Financial StatementsPrinciples of ConsolidationUse of EstimatesRecently Issued Accounting Standards3.Cash, Cash Equivalents, and Restricted Cash4.Property and EquipmentProperty Impairment5.Revolving Line of Credit6.Shareholders’ Equity7.Revenue Recognition8.Accumulated Other Comprehensive Income9. Income Taxes10.Commitments and Contingencies11.Leases12.Net Income Per Share13.Operating Segments14.Commodity Risk Management ActivitiesCommodity Price RisksCommodity Derivative Contracts15.Asset Retirement Obligations16.Fair Value MeasurementsITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONSOverviewBusiness StrategyOperational HighlightsNon-GAAP Financial Measures-Adjusted EBITDANet Operating RevenuesOperating CostsDepletion, Depreciation, Amortization and AccretionGeneral and AdministrativeInterest IncomeInterest ExpenseGain (Loss) on Derivative ContractsCapital Resources and Liquidity 4555678999999101011111213151515171818222223242426262627282930313232323333 Table of Contents Cash Flow33Credit Agreement34Repurchase Transactions34Derivative Transactions35Contractual Obligations35ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK36Gathering System Revenue Risk36Interest Rate Risk36Derivative Contracts36ITEM 4. CONTROLS AND PROCEDURES36Disclosure Controls and Procedures36Changes in Internal Control Over Financial Reporting37Inherent Limitations on Effectiveness of Controls37PART II OTHER INFORMATION37ITEM 1. LEGAL PROCEEDINGS37ITEM 1A. RISK FACTORS38ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS38ITEM 3. DEFAULTS UPON SENIOR SECURITIES38ITEM 4. MINE SAFETY DISCLOSURES38ITEM 5. OTHER INFORMATION38ITEM 6. EXHIBITS39SIGNATURES40 FORWARD-LOOKING STATEMENTS Certain statements contained in this report constitute forward-looking statements. The use of anyofthe words‘‘anticipate,’’ ‘‘continue,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘may,’’ ‘‘will,’’ ‘‘project,’’ ‘‘should,’’‘‘believe,’’ and similar expressions and statements relating to matters that are not historical factsconstitute‘‘forward looking information’’ within the meaning of applicable securities laws.Thesestatements involve known and unknown risks, uncertainties and other factors that may cause actual resultsor events to differ mater