Camber Energy Reports Significant Financial Challenges, Net Loss of $34.8 Million in Q3 2024

Camber Energy, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in total current assets, which fell to $15.1 million from $19.7 million as of December 31, 2023. Total assets also decreased sharply from $83.6 million to $47.2 million during the same period. Cash reserves were halved, dropping from $906,060 to $451,415. Despite a reduction in total current liabilities from $31.8 million to $29.3 million, total liabilities increased slightly to $78.8 million, contributing to a growing accumulated deficit of $203.4 million.

Revenue for the three months ended September 30, 2024, was $3.9 million, down from $6.7 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue increased to $16.0 million from $14.5 million year-over-year. Operating expenses for the third quarter decreased to $9.1 million from $10.7 million, but total operating expenses for the nine-month period rose to $30.8 million from $27.6 million. The company reported a loss from operations of $1.9 million for the third quarter, compared to a loss of $543,384 in the prior year, and a nine-month loss from operations of $5.4 million, up from $3.2 million.

The net loss for the third quarter of 2024 was $34.8 million, significantly higher than the $7.9 million loss reported in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss reached $63.9 million, compared to $10.8 million for the same period in 2023. This substantial loss included a goodwill impairment charge of $34.9 million and a change in the fair value of derivative liabilities amounting to $18.6 million.

Strategically, Camber completed a merger with Viking Energy Group, Inc. on August 1, 2023, which resulted in Viking becoming a wholly owned subsidiary. This merger was treated as a reverse acquisition, with Viking as the acquirer. The company has also been active in divesting its oil and gas assets, selling its working interest in properties for gross proceeds of $205,000 in February 2024, and recording a net gain from the sale of oil and gas assets in Kansas for $515,000 in November 2023.

As of September 30, 2024, Camber's stockholders' equity reflected a deficit of $31.7 million, and the company reported a working capital deficiency of $14.2 million. Management expressed substantial doubt regarding the company's ability to continue as a going concern, emphasizing the need for profitable operations and necessary financing.