Thu, May 15, 4:27 PM (28 days ago)
**Royale Energy, Inc. (ROYL) Q1 2025 Financial Summary** **Financial Health and Performance:** Royale Energy, Inc. (ROYL) reported a net loss of $681,951 for Q1 2025, a slight improvement from the $770,110 loss in Q1 2024. The company's total revenues decreased by 26.1% to $487,773, primarily due to lower oil and gas production volumes. Oil sales volumes decreased by 27.1%, and natural gas sales volumes decreased by 30.3% compared to Q1 2024. The company's gross profit margin improved slightly, with total costs and expenses decreasing by 14.3% to $1,183,392. However, the company's operating loss margin widened to 142.6% from 111.2% in Q1 2024. **Cash Flow:** Royale Energy used $617,612 in cash from operating activities in Q1 2025, a 6.6% increase from Q1 2024. The company generated $569,051 in cash from investing activities, primarily from proceeds from turnkey drilling programs. Financing activities used $2,771 in cash, compared to $1,396,887 provided in Q1 2024. The company's cash position decreased by $51,332 to $7,850,831 at the end of Q1 2025. **Earnings Changes:** The company's earnings per share (EPS) remained at -$0.01 for Q1 2025, the same as Q1 2024. The company had 96,600,302 shares outstanding at the end of Q1 2025. **Trends and Uncertainties:** Royale Energy faces significant uncertainties, including substantial doubt about its ability to continue as a going concern. The company has a working capital deficiency of $11,969,565 and an accumulated deficit of $94,186,420. Management plans to alleviate these issues through cost control measures, asset sales, and potential financing. The company's future operations may be impacted by changes in oil and gas prices, production levels, and regulatory environment. **Future Operations Impact:** The company plans to increase revenues by participating in drilling wells in the Permian basin and continuing to drill and workover wells in its Texas Jameson field. However, there are no assurances that these plans will be successful. The company may need to curtail, suspend, or cease operations, sell property, or enter into financing transactions on less favorable terms if it cannot generate sufficient cash from operations or financing sources. **Management's Discussion:** Management believes that expected increases in revenue, together with reduced capital expenditures for drilling, will allow the company to meet its liquidity needs through the remainder of the year. However, there are no assurances that this will be the case. The company's financial statements do not include any adjustments that might be necessary if it is unable to continue as a going concern.