Wed, Aug 14, 6:43 PM (153 days ago)
For the quarter ending June 30, 2024, Royale Energy, Inc. reported a net loss of $110,616, a decrease from a significant loss of $1,035,375 in the same period last year. Revenue rose by 26.8% to $545,746, driven by increased oil production and higher prices, despite a decline in natural gas sales volume. Operating expenses decreased, with lease operating expenses down 20.9% year-over-year, aided by water disposal recovery fees. However, total costs remained high, leading to a six-month net loss of $880,726, compared to $33,031 in 2023. The company faced a working capital deficit of $9,415,089 and an accumulated deficit of $91,636,335, raising concerns about its ability to continue operations. Cash flows from operating activities improved, while financing activities included a $1.4 million note payable. Management anticipates revenue growth through drilling partnerships but acknowledges the need for additional financing to support operations. Future performance remains uncertain, contingent on market conditions and operational efficiency.