Epsilon Energy Ltd. (EPSN) continues to make higher highs so we are buying into this up-move at the $5.46 level. This company is not an actual operator in the energy space but an investor in upstream natural gas, midstream plays as well as liquid assets. The company has a very strong balance sheet, a well-covered dividend, minimal costs, and growing diversification is expected to lead to more predictable earnings and cash flows going forward.
Technically, as we see below, we are starting from a very low base on the intermediate weekly chart with June’2023 being an exceptionally strong month for the company. Epsilon deals with proven operators which has resulted in a large cash balance to date and growing strength in the company’s assets. Therefore, if trends continue here as I believe they will, we see the return on capital numbers continuing to improve at Epsilon which will drive shares of the company higher over time.
Trade Fill: Buying Epsilon Energy (EPSN) stock @ $5.46 per share.
‘Remember To Adhere To Rules Regarding Trade Size In Earlier Commentary’