Thu, May 15, 3:04 PM (40 days ago)
**Energy Resources 12, L.P. (ERLX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $7,877,153 (down 9.3% YoY) from oil ($6,322,773), natural gas ($783,410), and NGLs ($770,970). - **Operating Loss:** $(974,980) (improved from $(1,118,156) in Q1 2024). - **Net Loss:** $(1,090,594) (slightly improved from $(1,113,467) in Q1 2024). - **Cash Flow from Operations:** $3,428,971 (up from $3,261,109 in Q1 2024). - **Profit Margins:** Negative, with operating and net margins reflecting losses. **Key Metrics & Trends:** - **Production:** 158,153 BOE (down 9.4% YoY), with oil accounting for 58% of production. - **Prices:** Oil prices down 6.6% YoY, natural gas prices up 61.9% YoY. - **Costs:** Production expenses per BOE slightly decreased, while DD&A per BOE slightly increased. - **Liquidity:** $797,218 in cash, $5.4 million available under the credit facility. **Uncertainties & Future Operations:** - **Commodity Prices:** Volatile oil prices and dependent on global economic conditions. - **Production Declines:** Natural depletion of reservoirs leading to decreased production. - **Capital Expenditures:** $0.7 million in Q1 2025, with potential future investments up to $30 million through 2028. - **Debt Covenants:** Non-compliance with debt service coverage ratio, with waivers granted but no guarantee of future waivers. - **Taxes:** Ongoing state tax withholding payments on behalf of non-resident partners. **Impact on Future Operations:** - **Distributions:** $0.320541 per common unit paid in Q1 2025, with future distributions dependent on cash flow and debt covenant compliance. - **Growth:** Dependent on successful drilling and marketing activities, as well as maintaining or increasing production levels. - **Risks:** Geopolitical risks, regulatory changes, and market volatility could impact financial performance and operations.