Epsilon Announces New and Revised Senior Secured Reserve-Based Revolving Credit Facility

Rhea-AI Summary

Epsilon Energy (NASDAQ: EPSN) announced closing a new and revised senior secured reserve-based revolving credit facility with Frost Bank as administrative agent and Frost Bank and Texas Capital Bank as lenders.

Key terms: four-year term maturing October 8, 2029; initial borrowing base and commitments of $47.5 million; semi-annual redeterminations; interest at 3‑Month Term SOFR + 3–4% (margin varies by utilization) payable quarterly. The borrowing base will be redetermined and increased on closing of the Peak companies acquisition later in Q4 2025 to include acquired assets.

The facility will initially fund at the Peak closing and proceeds will repay Peak’s existing term loan, estimated at $49.6 million at closing. Management says the facility adds commitment capacity and tenor to support the announced acquisitions while maintaining balance sheet liquidity. A copy of the loan agreement is filed in the Form 8-K.

Positive

• Initial commitments of $47.5 million
• Facility tenor extended to Oct 8, 2029
• Borrowing base redetermined to include Peak assets at closing
• Proceeds used to repay Peak term loan (estimated $49.6 million)

Negative

• Interest rate exposure at 3‑Month Term SOFR + 3–4%
• Initial commitments (~$47.5M) roughly match estimated Peak term loan (~$49.6M)

HOUSTON, Oct. 13, 2025 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported the closing of a new and revised senior secured reserve-based revolving credit facility (the “Credit Facility”) with Frost Bank as the administrative agent and Frost Bank and Texas Capital Bank as lenders. The new Credit Facility replaces the Company’s previous credit facility.

Term highlights of the Credit Facility:

• Epsilon Energy USA Inc. and Epsilon Energy Ltd. as co-borrowers
• Four year term (matures October 8, 2029)
• Initial borrowing base and commitments of $47.5 million (supported by the Company’s existing US upstream assets), which will be redetermined and increased on the closing of the acquisition of the Peak companies later in Q4 2025 (to include the acquired assets).
• Semi-annual redeterminations
• Interest is charged on drawdowns at the 3-Month Term SOFR rate plus a margin of 3-4% (depending on facility utilization), payable quarterly
  

The new Credit Facility will initially fund at the same time as the closing of the Peak companies acquisition. Proceeds will go to repaying Peak’s existing term loan, with an estimated balance at closing of $49.6 million.

“The new and revised credit facility adds commitment capacity and tenor and enables the Company to comfortably close the acquisitions announced in August while maintaining a strong balance sheet and liquidity going forward” commented Andrew Williamson, Epsilon’s Chief Financial Officer.

A copy of the new loan agreement is available in the Form 8K filed following this release.

About Epsilon

Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico, and Oklahoma

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Forward-looking statements are based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Contact Information:

281-670-0002

Jason Stabell
Chief Executive Officer
Jason.Stabell@EpsilonEnergyLTD.com

Andrew Williamson
Chief Financial Officer
Andrew.Williamson@EpsilonEnergyLTD.com

FAQ

What are the key terms of Epsilon Energy’s new credit facility (EPSN) dated October 13, 2025?

The facility is a four-year reserve-based revolving credit facility maturing Oct 8, 2029 with initial commitments of $47.5M, semi-annual redeterminations, and interest at 3‑Month Term SOFR + 3–4%.

How will the new EPSN credit facility fund the Peak companies acquisition?

The facility will initially fund at the Peak closing and proceeds will repay Peak’s existing term loan, estimated at $49.6M at closing.

Which banks are lenders on Epsilon’s new credit facility (EPSN)?

Frost Bank is administrative agent and both Frost Bank and Texas Capital Bank are lenders on the facility.

Will Epsilon’s borrowing base change after the Peak acquisition for EPSN?

Yes, the initial $47.5M borrowing base will be redetermined and increased on closing to include the acquired Peak assets.

How often will Epsilon’s credit facility borrowing base be redetermined for EPSN?

The facility includes semi-annual redeterminations of the borrowing base.