Wed, Jul 17, 8:00 PM (52 days ago)
Next Bridge Hydrocarbons, Inc.'s 2023 financial performance was marked by significant net losses and substantial impairment adjustments. The company reported a net loss of $37.6 million for the year, primarily due to a $27.2 million impairment on its oil and natural gas assets, reflecting concerns over lease renewals. Revenue decreased to $26,031 from $40,834 in 2022, driven by lower oil and gas prices and reduced production. Operating expenses rose sharply to $12.1 million, up from $8.8 million in 2022, largely due to increased general and administrative costs. Cash flows from operations were negative at $7.6 million, while capital expenditures totaled $27.2 million, focusing on the Orogrande Project. The company financed its activities mainly through related-party loans, drawing $18 million under a $20 million promissory note. Future outlook hinges on securing additional capital, meeting drilling obligations, and resolving lease renewals. Key risks include regulatory changes, market volatility, and operational challenges.