Epsilon Energy closed a senior secured reserve-based revolving credit facility with Frost Bank as the issuing bank and sole lender. The new credit facility will replace the company’s previous credit facility.

Highlights of the credit facility:

• Four-year term (matures June 28, 2027)
• Initial borrowing base of $35 million, supported by the company’s upstream assets in Pennsylvania, with semi-annual redeterminations
• Initial commitments of $35 million
• Interest is charged on drawdowns at the Daily Simple SOFR rate plus a margin of 3.25%, payable quarterly

“Our new credit facility includes attractive commercial terms and covenants that will enable us to flexibly deploy incremental capital to attractive opportunities within our existing asset base and potential future acquisitions, to the benefit of our shareholders,” Andrew Williamson, chief financial officer of Epsilon, said. “We remain committed to our high quality balance sheet and capital structure, and will be prudent in our use of leverage going forward. I would like to thank Frost for their confidence in our business.”