Property and Equipment

6 Months Ended

Jun. 30, 2026

Oil and Gas Property, Successful Effort Method, Gross [Abstract]

Property and Equipment

4. Property and Equipment

The following table summarizes the Company’s property and equipment as of June 30, 2026 and December 31, 2025:


		June 30,			December 31,
		2026			2025
Property and equipment:
Oil and gas properties, successful efforts method
Proved properties		$	245,787,578		$	233,334,212
Unproved properties			80,341,257			79,307,169
Accumulated depletion, depreciation, amortization and impairment			(136,623,569)			(131,636,141)
Total oil and gas properties, net			189,505,266			181,005,240
Gathering system			43,428,789			43,540,389
Accumulated depletion, depreciation, amortization and impairment			(37,849,676)			(37,472,139)
Total gathering system, net			5,579,113			6,068,250
Land			1,231,965			1,231,965
Buildings and other property and equipment, net			4,036,238			4,132,732
Total property and equipment, net		$	200,352,582		$	192,438,187

Asset Sales

On May 4, 2026, the Company divested certain overriding royalty interests (ORRIs) in Susquehanna Co, Pennsylvania to an undisclosed private buyer for $3.9 million. On May 12, 2026, the Company also divested interest in a wellbore in Ector County, Texas for $0.3 million. The Company had previously decided not to participate in the associated well.

Because the Company had no cost basis in these wells, during the three and six months ended June 30, 2026, the proceeds are reported as Gain on sale of oil and gas properties on the Condensed Consolidated Statement of Operations and Comprehensive Income.

During the three and six months ended June 30, 2025, the Company had no asset sales.

Property Impairment

We perform a quantitative impairment test whenever events or changes in circumstances indicate that an asset group's carrying amount may not be recoverable, over proved properties using the published NYMEX forward prices, basis differentials, timing, methods and other assumptions consistent with historical periods. When indicators of impairment are present, GAAP requires that the Company first compare expected future undiscounted cash flows by asset group to their respective carrying values. If the carrying amount exceeds the estimated undiscounted future cash flows, a reduction of the carrying amount of the properties to their estimated fair value is required. Additionally, if an exploratory well is determined not to have found proved reserves, the costs incurred, net of any salvage value, should be charged to expense.

During the three and six months ended June 30, 2026, no impairment was recorded.

During the three months and six months ended June 30, 2025, Epsilon recorded an impairment of $2.7 million for two wells drill in Alberta, Canada. For the year ended December 31, 2025, the Company recorded an impairment of $3.2 million on the Canadian wells (2 gross, 0.5 net) and $0.7 million on the New Mexico wells (2 gross, 0.2 net) due to low forward oil prices on December 31, 2025 (which are required to be used in impairment testing) and an offset frac hit impacting production and reserves in New Mexico.