Why Epsilon Energy Ltd (EPSN) Is Up the Most So Far in 2025

Omor Ibne Ehsan

Sat, Apr 26, 2025, 4:17 PM 3 min read

We recently published a list of Why These 15 Energy Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where Epsilon Energy Ltd. (NASDAQ:EPSN) stands against other energy stocks that are up the most so far in 2025.

The energy sector has been volatile, and macro trends have led to fears of recession. The S&P 500 energy sector gained almost 9% from January till late March, but it has been dragged down by the broader market correction.

Brent futures have hit lows and sent many energy stocks into a tailspin. Yet, there are still some energy stocks that have defied the odds and have delivered solid gains. Midstream companies have been exceptionally resilient, and renewables have also been a bright spot in the energy sector.

Even during bear markets there are pockets of the market that perform exceptionally well. For instance, tech stocks have been in a bear market, but I recently identified 15 Tech Stocks that are Up the Most in 2025 in another article.

For this article, I screened the best-performing energy stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A pipeline of natural gas cutting through a rural landscape.

Number of Hedge Fund Holders In Q4 2024: 6

Epsilon Energy Ltd. (NASDAQ:EPSN) is an independent natural gas and oil company focused on acquiring, developing, and producing reserves in the United States, with operations in the Marcellus Shale, Permian Basin, and Anadarko Basin.

The stock’s sharp rise in 2025 is mainly attributed to a dramatic turnaround in natural gas production and pricing. After a challenging 2024, when Marcellus net wellhead prices were below $2 per Mcf and about 20-25% of production was curtailed, Epsilon (NASDAQ:EPSN) began ramping up output in late 2024 and early 2025 as gas prices improved. The CEO reported that Marcellus production was up 75% from the 2024 average by the first quarter of 2025, allowing Epsilon to capture higher realized prices and boost revenues.

Another driver was the company’s shareholder returns, with $7.3 million returned in 2024 through dividends and buybacks. In March 2025, Epsilon (NASDAQ:EPSN) was upgraded to a “Buy” rating by Zacks, reflecting a positive shift in earnings estimates and institutional sentiment, which further supported the stock.