Form 4: Epsilon Energy Director Receives Equity Grant

David W. Winn, a Director at Epsilon Energy Ltd., was granted 13,598 common shares in the form of time-based restricted stock units.

Summary

• David W. Winn, a Director of Epsilon Energy Ltd. (EPSN), acquired 13,598 common shares.
• The acquisition occurred on January 22, 2026, and was a grant of time-based restricted stock units (RSUs).
• These RSUs will vest evenly over three years, specifically on December 31, 2026, December 31, 2027, and December 31, 2028.
• Following this transaction, Mr. Winn beneficially owns a total of 70,435 common shares.
• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 6

Explanation: Slightly positive, as it indicates alignment of director interests with shareholders and is a routine, expected compensation event without negative implications.

Positives

• The grant of restricted stock units to Director David W. Winn aligns his interests with those of shareholders, as his compensation is tied to the company's long-term performance.
• The vesting schedule over three years encourages long-term commitment and retention of key management personnel.

Future Outlook

The future outlook, as indicated by the vesting schedule, suggests a commitment to retaining the director through December 31, 2028, aligning his incentives with the company's long-term performance.

Industry Context

The grant of restricted stock units to a director is a common practice in the energy sector and across publicly traded companies, serving as a key component of executive and director compensation packages to incentivize long-term performance and align interests with shareholders.

Comparison to Industry Standards

• The use of time-based restricted stock units for director compensation is a standard practice across various industries, including the energy sector, aligning with corporate governance best practices.
• Many public companies, such as ExxonMobil, Chevron, and smaller independent producers, utilize similar equity-based compensation structures for their non-employee directors to foster long-term commitment.
• Specific comparable company data regarding the exact number of shares or grant value for similar roles is not provided within this filing, but the mechanism itself is consistent with global benchmarks for director incentives.

Related Party Transactions

• The grant of 13,598 common shares in the form of restricted stock units to David W. Winn, a Director, constitutes a transaction between the company and a related party.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's financial interests with shareholder value creation over the long term.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• The restricted stock units will vest in three equal annual installments on December 31, 2026, December 31, 2027, and December 31, 2028.

Key Dates

Keywords

Epsilon Energy, EPSN, David W. Winn, Form 4, SEC filing, restricted stock units, RSU grant, insider transaction, director compensation, equity compensation