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Epsilon Energy (NASDAQ: EPSN) declares dividend and resets $90M credit base

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Epsilon Energy Ltd. disclosed several capital allocation decisions. The company’s board declared a quarterly dividend of $0.0625 per common share, equivalent to an annualized $0.25 per share, for shareholders of record on June 15, 2026, payable on June 30, 2026. The dividend is characterized as an “eligible dividend” under Canadian tax rules.

The company also reported that its lenders completed a borrowing base redetermination on its senior secured revolving credit facility. Effective May 29, 2026, the borrowing base and lender commitments were set at $90 million. Epsilon currently has $40.5 million outstanding under this facility. In addition, the company announced a new share repurchase program and noted that the next borrowing base redetermination is scheduled for the fourth quarter of 2026.

Positive

  • None.

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Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Quarterly dividend $0.0625 per share Declared June 1, 2026 for common shares
Annualized dividend rate $0.25 per share Annualized equivalent of declared quarterly dividend
Dividend record date June 15, 2026 Shareholders of record on this date receive dividend
Dividend payment date June 30, 2026 Scheduled payment date for declared dividend
Borrowing base $90 million Redetermined effective May 29, 2026 on senior secured revolver
Lender commitments $90 million Commitments increased to match borrowing base
Credit facility outstanding $40.5 million Amount currently drawn on the revolving credit facility
borrowing base redetermination financial
"The Company also announced the results of a borrowing base redetermination on the Company’s senior secured revolving credit facility"
senior secured revolving credit facility financial
"on the Company’s senior secured revolving credit facility (the “Credit Facility”), dated October 8, 2025, with Frost Bank and Texas Capital Bank"
A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.
eligible dividends financial
"All dividends paid by the Company are “eligible dividends” as defined in subsection 89(1) of the Income Tax Act (Canada)"
Eligible dividends are a type of corporate payout that carries a stronger tax benefit for individual shareholders because they come from profits that were taxed at higher corporate rates. Think of them like a higher-value coupon: investors receive cash and, when filing taxes, get a bigger credit that reduces the amount of tax owed on that income. That matters to investors because the after-tax amount they actually keep can be noticeably higher than for other kinds of dividends, affecting yield comparisons and portfolio income planning.
borrowing base financial
"Effective on May 29, 2026, the Lenders redetermined the borrowing base at $90 million and increased commitments to $90 million"
A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.
redetermination financial
"The next redetermination is scheduled for the fourth quarter of 2026"
A redetermination is an official re-evaluation of a prior decision—such as eligibility, coverage, payment amount, or regulatory status—conducted by an insurer, government agency, or regulator. For investors, it matters because a change after review can alter a company’s expected revenue, reimbursement rates, or legal obligations; think of it like a store re-checking a past receipt and either charging more, issuing a refund, or changing what’s covered.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 1, 2026

EPSILON ENERGY LTD.

(Exact name of registrant as specified in charter)

Alberta, Canada

001-38770

98-1476367

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification Number)

500 Dallas St., Suite 1250

Houston, Texas 77002

(Address of principal executive offices, including zip code)

(281) 670-0002

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

  ​ ​ ​

Trading Symbol(s)

  ​ ​ ​

Name of each exchange on which registered:

Common Shares, no par value

EPSN

NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 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 new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 7.01. Regulation FD Disclosure.

 

On June 1, 2026, the Company issued a press release announcing a new share repurchase program and the redetermination of it borrowing base. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit

Number

Description

99.1*

Press release dated June 1, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Filed or furnished herewith

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EPSILON ENERGY LTD.

Date: June 1, 2026

By:

/s/ J. Andrew Williamson

J. Andrew Williamson

Chief Financial Officer

3

Graphic

Exhibit 99.1

News Release

Epsilon Energy LTD. Announces Quarterly Dividend And Borrowing Base Redetermination

Houston, Texas – June 1, 2026 – Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced that its Board of Directors has declared a dividend of $0.0625 per share of common stock (annualized $0.25/sh) to the stock holders of record at the close of business on June 15, 2026, payable on June 30, 2026. All dividends paid by the Company are “eligible dividends” as defined in subsection 89(1) of the Income Tax Act (Canada), unless indicated otherwise.

The Company also announced the results of a borrowing base redetermination on the Company’s senior secured revolving credit facility (the “Credit Facility”), dated October 8, 2025, with Frost Bank and Texas Capital Bank (“Lenders”). Effective on May 29, 2026, the Lenders redetermined the borrowing base at $90 million and increased commitments to $90 million. The next redetermination is scheduled for the fourth quarter of 2026. There is currently $40.5 million outstanding on the Credit Facility.

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, and Anadarko 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 dividend did Epsilon Energy (EPSN) declare in this 8-K?

Epsilon Energy declared a quarterly dividend of $0.0625 per common share, which equals $0.25 per share on an annualized basis. Shareholders of record on June 15, 2026 will receive payment on June 30, 2026.

When are the record and payment dates for Epsilon Energy’s June 2026 dividend?

The dividend is payable to shareholders of record on June 15, 2026 and will be paid on June 30, 2026. The declared amount is $0.0625 per common share, annualized at $0.25 per share.

How did Epsilon Energy (EPSN) describe its dividends for Canadian tax purposes?

Epsilon Energy stated that all dividends it pays are “eligible dividends” under subsection 89(1) of the Income Tax Act (Canada), unless indicated otherwise. This classification can provide favorable tax treatment for certain Canadian shareholders receiving the dividends.

What is Epsilon Energy’s updated borrowing base and commitments on its credit facility?

Following a redetermination effective May 29, 2026, Epsilon’s lenders set the borrowing base at $90 million and increased commitments to $90 million. This applies to the company’s senior secured revolving credit facility with Frost Bank and Texas Capital Bank.

How much has Epsilon Energy drawn on its senior secured revolving credit facility?

Epsilon Energy reported that it currently has $40.5 million outstanding on its senior secured revolving credit facility. This facility, with a $90 million borrowing base, was originally dated October 8, 2025 with Frost Bank and Texas Capital Bank as lenders.

When is the next borrowing base redetermination scheduled for Epsilon Energy (EPSN)?

The next borrowing base redetermination on Epsilon Energy’s senior secured revolving credit facility is scheduled for the fourth quarter of 2026. The most recent redetermination set the borrowing base and commitments at $90 million, with $40.5 million currently outstanding.

Did Epsilon Energy announce a share repurchase program in this filing?

Yes. Epsilon Energy reported that it announced a new share repurchase program in conjunction with this disclosure. Specific terms or size of the program are not detailed in the excerpt, but the announcement signals authorization to repurchase common shares.

Filing Exhibits & Attachments

5 documents