Epsilon Energy Ltd. Announces the Divestment of Dewey Energy Holdings LLC and the Company’s Asset in the Anadarko Basin
Rhea-AI Summary
Epsilon Energy (NASDAQ: EPSN) announced on December 11, 2025 the signing and closing of definitive transaction documents to sell its wholly owned subsidiary Dewey Energy Holdings LLC, which held the Company's Western Anadarko basin assets, to an undisclosed private buyer.
The assets sold included approximately 813 Mcfe/d of production (Q3 2025 figure; 60% natural gas), about 6,400 net deep acres and 2,200 net shallow acres of leasehold in Dewey County, Oklahoma. The purchase price was $2.5 million in cash. RedOaks Energy Advisors assisted the Company with the sell-side process.
Positive
- Sale generated $2.5 million in cash proceeds
- Transaction completed via signing and coincident closing on Dec 11, 2025
Negative
- Company relinquished 813 Mcfe/d production (Q3 2025)
- Disposition transferred 6,400 net deep acres and 2,200 net shallow acres
- Buyer remains undisclosed, leaving counterparty details unclear
News Market Reaction – EPSN
On the day this news was published, EPSN gained 1.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves, with gains in PROP (+2.89%) and KGEI, flat trading in GTE, and declines in AMPY and EP, indicating stock-specific rather than broad sector momentum for EPSN.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 26 | Dividend declaration | Positive | +1.1% | Announced quarterly dividend of $0.0625 per common share. |
| Nov 20 | Acquisition consideration | Positive | +0.6% | Issued contingent shares as consideration for Peak BLM Lease acquisition. |
| Nov 14 | Acquisitions closed | Positive | -1.6% | Closed acquisitions of Peak entities and increased credit facility commitments. |
| Nov 05 | Earnings & operations | Positive | -3.3% | Reported higher Q3 2025 revenue, EBITDA, cash, and operational updates. |
| Oct 23 | Earnings schedule | Neutral | +2.3% | Scheduled Q3 2025 earnings release and conference call details. |
Recent news has been largely constructive (dividends, acquisitions, stronger results), but price reactions have been modest and sometimes negative on positive updates.
This announcement follows a series of growth- and shareholder-focused steps. In Q3 2025, Epsilon reported higher revenue and net income and highlighted an acquisition in the Powder River Basin. It then closed the Peak acquisitions and expanded its credit facility to $80 million. The company also issued contingent shares tied to the Peak deal and recently declared a quarterly dividend of $0.0625 per share. Against this backdrop of portfolio expansion and capital returns, today’s divestment further reshapes the asset mix.
Market Pulse Summary
This announcement details Epsilon’s sale of its Western Anadarko basin subsidiary, including about 813 Mcfe/d of production and roughly 8,600 net acres, for $2.5 million in cash. It follows a period of expansion via Peak acquisitions and stronger reported results, indicating active portfolio management. Investors may track how divested volumes compare to new assets, future capital allocation of sale proceeds, and any updates tying this divestment to its broader Marcellus, Powder River, Permian, and Western Canadian positions.
Key Terms
mcfe/d technical
AI-generated analysis. Not financial advice.
HOUSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced the signing of definitive transaction documents and the coincident closing of a sale of the Company’s wholly owned subsidiary, Dewey Energy Holdings, LLC, which holds the Company’s Western Anadarko basin assets, to an undisclosed private buyer.
The assets sold included approximately 813 Mcfe/d (
The purchase price was
RedOaks Energy Advisors LLC assisted the Company with the sell-side process.
About Epsilon
Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets across the Marcellus, Powder River, Permian, Western Canadian Sedimentary basins.
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 did Epsilon Energy (EPSN) sell on December 11, 2025?
How much production did EPSN divest in the Anadarko Basin sale?
What acreage did Epsilon (EPSN) transfer in the Dewey County sale?
How much cash did EPSN receive from the sale of Dewey Energy Holdings?
Who advised Epsilon Energy on the sale of its Anadarko assets?
