XML 31 R20.htm IDEA: XBRL DOCUMENT v3.25.2

Operating Segments

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Operating Segments

14. Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as executive management consisting of the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. The CODM uses the Company’s consolidated financial results, including operating income or loss by segment, to make key operating decisions, assess performance, and to allocate resources.

Segment performance is evaluated based on operating income or loss as shown in the table below. Interest income and income taxes are managed separately on a group basis.

The Company’s reportable segments are as follows:

a. The Upstream segment activities include acquisition, development and production of natural gas and oil reserves on properties within the United States and Canada; and

b. The Gas Gathering segment partners with two other companies to operate a natural gas gathering system.

​

Segment activity for the six months ended June 30, 2025 and 2024 is as follows:

​

​	​	​	​	​	​	​	​	​	​
​		Upstream			Gas Gathering			Consolidated
As of and for the six months ended June 30, 2025	​	​	​	​	​	​	​	​	​
Operating revenue	​	​	​	​	​	​	​	​	​
Natural gas	​	$	17,523,917	​	$	—	​	$	17,523,917
Natural gas liquids	​	​	532,270	​	​	—	​	​	532,270
Oil and condensate	​	​	5,994,331	​	​	—	​	​	5,994,331
Gathering and compression fees	​	​	—	​	​	3,737,355	​	​	3,737,355
Intersegment gathering and compression fees	​	​	—	​	​	1,064,223	​	​	1,064,223
​	​	​	24,050,518	​	​	4,801,578	​	​	28,852,096
​	​	​	​	​	​	​	​	​	​
Reconciliation of operating revenue	​	​	​	​	​	​	​	​	​
Elimination of intersegment revenues	​	​	​	​	​	​	​	​	(1,064,223)
Total consolidated operating revenue(1)	​	​	​	​	​	​	​	​	27,787,873
​	​	​	​	​	​	​	​	​	​
Operating costs	​	​	​	​	​	​	​	​	​
Gathering, transportation, and compression	​	​	3,978,175	​	​	—	​	​	3,978,175
Other lease operating expense	​	​	1,240,508	​	​	—	​	​	1,240,508
Gathering system operating expenses	​	​	—	​	​	1,166,446	​	​	1,166,446
Intersegment other lease operating expense	​	​	1,064,223	​	​	—	​	​	1,064,223
Impairment	​	​	2,676,669	​	​	—	​	​	2,676,669
Depletion, depreciation, amortization and accretion	​	​	6,065,544	​	​	611,967	​	​	6,677,511
Segment operating income	​	$	9,025,399	​	$	3,023,165	​	$	10,984,341
​	​	​	​	​	​	​	​	​	​
Reconciliation of segment operating income	​	​	​	​	​	​	​	​	​
Salary expense	​	​	​	​	​	​	​	​	1,789,792
Stock based compensation	​	​	​	​	​	​	​	​	771,676
Other general and administrative	​	​	​	​	​	​	​	​	1,490,504
Elimination of intersegment other lease operating expenses	​	​	​	​	​	​	​	​	(1,064,223)
Total consolidated operating income	​	​	​	​	​	​	​	​	7,996,592
​	​	​	​	​	​	​	​	​	​
Other income (expense)	​	​	​	​	​	​	​	​	​
Interest income	​	​	​	​	​	​	​	​	32,546
Interest expense	​	​	​	​	​	​	​	​	(32,117)
Loss on derivative contracts	​	​	​	​	​	​	​	​	1,111,693
Other expense	​	​	​	​	​	​	​	​	(33,338)
Other expense, net	​	​	​	​	​	​	​	​	1,078,784
Net income before income tax expense	​	​	​	​	​	​	​	$	9,075,376
​	​	​	​	​	​	​	​	​	​
Capital expenditures (2)	​	$	11,142,744	​	$	228,327	​	$	11,371,071
Segment assets	​	$	99,073,244	​	$	6,358,460	​	$	105,431,704
​	​	​	​	​	​	​	​	​	​
Total segment assets reconciled to consolidated amounts are as follows:	​	​	​	​	​	​	​	​	​
Total segment assets	​	​	​	​	​	​	​	$	105,431,704
Current assets, net	​	​	​	​	​	​	​	​	16,533,328
Other property and equipment	​	​	​	​	​	​	​	​	883,319
Operating lease right-of-use asset	​	​	​	​	​	​	​	​	295,317
Restricted cash	​	​	​	​	​	​	​	​	470,000
​	​	​	​	​	​	​	​	$	123,613,668

​

​	​	​	​	​	​	​	​	​	​
​		Upstream			Gas Gathering			Consolidated
As of and for the six months ended June 30, 2024	​	​	​	​	​	​	​	​	​
Operating revenue	​	​	​	​	​	​	​	​	​
Natural gas	​	$	4,924,209	​	$	—	​	$	4,924,209
Natural gas liquids	​	​	761,407	​	​	—	​	​	761,407
Oil and condensate	​	​	6,228,799	​	​	—	​	​	6,228,799
Gathering and compression fees	​	​	—	​	​	3,380,146	​	​	3,380,146
Intersegment gathering and compression fees	​	​	—	​	​	591,907	​	​	591,907
​	​	​	11,914,415	​	​	3,972,053	​	​	15,886,468
​	​	​	​	​	​	​	​	​	​
Reconciliation of operating revenue	​	​	​	​	​	​	​	​	​
Elimination of intersegment revenues	​	​	​	​	​	​	​	​	(591,907)
Total consolidated operating revenue(1)	​	​	​	​	​	​	​	​	15,294,561
​	​	​	​	​	​	​	​	​	​
Operating costs	​	​	​	​	​	​	​	​	​
Gathering, transportation, and compression	​	​	2,602,378	​	​	—	​	​	2,602,378
Other lease operating expense	​	​	815,951	​	​	—	​	​	815,951
Gathering system operating expenses	​	​	—	​	​	1,202,537	​	​	1,202,537
Intersegment other lease operating expense	​	​	591,907	​	​	—	​	​	591,907
Depletion, depreciation, amortization and accretion	​	​	4,007,320	​	​	421,509	​	​	4,428,829
Segment operating income	​	$	3,896,859	​	$	2,348,007	​	$	5,652,959
​	​	​	​	​	​	​	​	​	​
Reconciliation of segment operating income	​	​	​	​	​	​	​	​	​
Salary expense	​	​	​	​	​	​	​	​	1,461,549
Stock based compensation	​	​	​	​	​	​	​	​	635,158
Other general and administrative	​	​	​	​	​	​	​	​	1,575,689
Elimination of intersegment other lease operating expenses	​	​	​	​	​	​	​	​	(591,907)
Total consolidated operating income	​	​	​	​	​	​	​	​	2,572,470
​	​	​	​	​	​	​	​	​	​
Other income (expense)	​	​	​	​	​	​	​	​	​
Interest income	​	​	​	​	​	​	​	​	375,215
Interest expense	​	​	​	​	​	​	​	​	(17,519)
Gain on derivative contracts	​	​	​	​	​	​	​	​	(195,617)
Other expense	​	​	​	​	​	​	​	​	101,073
Other income, net	​	​	​	​	​	​	​	​	263,152
Net income before income tax expense	​	​	​	​	​	​	​	$	2,835,622
​	​	​	​	​	​	​	​	​	​
Capital expenditures (2)	​	$	29,432,084	​	$	70,236	​	$	29,502,320
Segment assets	​	$	97,059,040	​	$	6,896,509	​	$	103,955,549
​	​	​	​	​	​	​	​	​	​
Total segment assets reconciled to consolidated amounts are as follows:	​	​	​	​	​	​	​	​	​
Total segment assets	​	​	​	​	​	​	​	$	103,955,549
Current assets, net	​	​	​	​	​	​	​	​	14,977,407
Other property and equipment	​	​	​	​	​	​	​	​	919,208
Operating lease right-of-use asset	​	​	​	​	​	​	​	​	392,792
Restricted cash	​	​	​	​	​	​	​	​	900,000
​	​	​	​	​	​	​	​	$	121,144,956

(1) Segment operating revenue represents revenues generated from the operations of the segment. Inter-segment sales during the six months ended June 30, 2025 and 2024 have been eliminated upon consolidation. For the six months ended June 30, 2025, Epsilon sold natural gas to 34 unique customers. The one customer over 10% comprised 34% of total revenue. For the six months ended June 30, 2024, Epsilon sold natural gas to 29 unique customers. The three customers over 10% comprised 14%, 11%, and 10% of total revenue.

(2) Capital expenditures for the Upstream segment consist primarily of the acquisition of properties, and the drilling and completing of wells while Gas Gathering consists of expenditures relating to the expansion, completion, and maintenance of the gathering and compression facility.

​

​

​

​

Segment activity for the three months ended June 30, 2025 and 2024 is as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Upstream			Gas Gathering			Consolidated
As of and for the three months ended June 30, 2025	​	​	​	​	​	​	​	​	​
Operating revenue	​	​	​	​	​	​	​	​	​
Natural gas	​	$	6,910,344	​	$	—	​	$	6,910,344
Natural gas liquids	​	​	145,020	​	​	—	​	​	145,020
Oil and condensate	​	​	2,724,364	​	​	—	​	​	2,724,364
Gathering and compression fees	​	​	—	​	​	1,845,005	​	​	1,845,005
Intersegment gathering and compression fees	​	​	—	​	​	507,365	​	​	507,365
​	​	​	9,779,728	​	​	2,352,370	​	​	12,132,098
​	​	​	​	​	​	​	​	​	​
Reconciliation of operating revenue	​	​	​	​	​	​	​	​	​
Elimination of intersegment revenues	​	​	​	​	​	​	​	​	(507,365)
Total consolidated operating revenue(1)	​	​	​	​	​	​	​	​	11,624,733
​	​	​	​	​	​	​	​	​	​
Operating costs	​	​	​	​	​	​	​	​	​
Gathering, transportation, and compression	​	​	1,924,460	​	​	—	​	​	1,924,460
Other lease operating expense	​	​	538,325	​	​	—	​	​	538,325
Gathering system operating expenses	​	​	—	​	​	613,795	​	​	613,795
Intersegment other lease operating expense	​	​	507,365	​	​	—	​	​	507,365
Impairment	​	​	2,670,000	​	​	—	​	​	2,670,000
Depletion, depreciation, amortization and accretion	​	​	2,919,238	​	​	282,416	​	​	3,201,654
Segment operating income	​	$	1,220,340	​	$	1,456,159	​	$	2,169,134
​	​	​	​	​	​	​	​	​	​
Reconciliation of segment operating income	​	​	​	​	​	​	​	​	​
Salary expense	​	​	​	​	​	​	​	​	710,122
Stock based compensation	​	​	​	​	​	​	​	​	385,838
Other general and administrative	​	​	​	​	​	​	​	​	751,756
Elimination of intersegment other lease operating expenses	​	​	​	​	​	​	​	​	(507,365)
Total consolidated operating income	​	​	​	​	​	​	​	​	828,783
​	​	​	​	​	​	​	​	​	​
Other income (expense)	​	​	​	​	​	​	​	​	​
Interest income	​	​	​	​	​	​	​	​	17,247
Interest expense	​	​	​	​	​	​	​	​	(19,906)
Gain on derivative contracts	​	​	​	​	​	​	​	​	2,573,863
Other expense	​	​	​	​	​	​	​	​	(10,839)
Other expense, net	​	​	​	​	​	​	​	​	2,560,365
Net income before income tax expense	​	​	​	​	​	​	​	$	3,389,148
​	​	​	​	​	​	​	​	​	​
Capital expenditures (2)	​	$	3,502,977	​	$	124,052	​	$	3,627,029

​

​	​	​	​	​	​	​	​	​	​
​		Upstream			Gas Gathering			Consolidated
As of and for the three months ended June 30, 2024	​	​	​	​	​	​	​	​	​
Operating revenue	​	​	​	​	​	​	​	​	​
Natural gas	​	$	1,961,230	​	$	—	​	$	1,961,230
Natural gas liquids	​	​	388,423	​	​	—	​	​	388,423
Oil and condensate	​	​	3,513,717	​	​	—	​	​	3,513,717
Gathering and compression fees	​	​	—	​	​	1,444,448	​	​	1,444,448
Intersegment gathering and compression fees	​	​	—	​	​	277,509	​	​	277,509
​	​	​	5,863,370	​	​	1,721,957	​	​	7,585,327
​	​	​	​	​	​	​	​	​	​
Reconciliation of operating revenue	​	​	​	​	​	​	​	​	​
Elimination of intersegment revenues	​	​	​	​	​	​	​	​	(277,509)
Total consolidated operating revenue(1)	​	​	​	​	​	​	​	​	7,307,818
​	​	​	​	​	​	​	​	​	​
Operating costs	​	​	​	​	​	​	​	​	​
Gathering, transportation, and compression	​	​	1,231,981	​	​	—	​	​	1,231,981
Other lease operating expense	​	​	417,886	​	​	—	​	​	417,886
Gathering system operating expenses	​	​	—	​	​	649,967	​	​	649,967
Intersegment other lease operating expense	​	​	277,509	​	​	—	​	​	277,509
Depletion, depreciation, amortization and accretion	​	​	1,877,611	​	​	170,792	​	​	2,048,403
Segment operating income	​	$	2,058,383	​	$	901,198	​	$	2,682,072
​	​	​	​	​	​	​	​	​	​
Reconciliation of segment operating income	​	​	​	​	​	​	​	​	​
Salary expense	​	​	​	​	​	​	​	​	15,838
Stock based compensation	​	​	​	​	​	​	​	​	313,589
Other general and administrative	​	​	​	​	​	​	​	​	1,462,377
Elimination of intersegment other lease operating expenses	​	​	​	​	​	​	​	​	(277,509)
Total consolidated operating income	​	​	​	​	​	​	​	​	1,167,777
​	​	​	​	​	​	​	​	​	​
Other income (expense)	​	​	​	​	​	​	​	​	​
Interest income	​	​	​	​	​	​	​	​	108,943
Interest expense	​	​	​	​	​	​	​	​	(8,759)
Gain on derivative contracts	​	​	​	​	​	​	​	​	(94,891)
Other expense	​	​	​	​	​	​	​	​	101,606
Other income, net	​	​	​	​	​	​	​	​	106,899
Net income before income tax expense	​	​	​	​	​	​	​	$	1,274,676
​	​	​	​	​	​	​	​	​	​
Capital expenditures (2)	​	$	9,109,756	​	$	47,586	​	$	9,157,342

(3) Segment operating revenue represents revenues generated from the operations of the segment. Inter-segment sales during the three months ended June 30, 2025 and 2024 have been eliminated upon consolidation. For the three months ended June 30, 2025, Epsilon sold natural gas to 31 unique customers. The two customers over 10% comprised 44% and 14% of total revenue. For the three months ended June 30, 2024, Epsilon sold natural gas to 26 unique customers. The three customers over 10% comprised 20%, 15% and 14% of total revenue.

(4) Capital expenditures for the Upstream segment consist primarily of the acquisition of properties, and the drilling and completing of wells while Gas Gathering consists of expenditures relating to the expansion, completion, and maintenance of the gathering and compression facility.

​

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/280/tableOfContent

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration