Norris Industries Reports Decrease in Revenues and Net Loss for Quarter Ending May 31, 2025

Norris Industries, Inc. reported its financial results for the three months ending May 31, 2025, revealing total revenues of $92.8 million, a decrease from $100.3 million in the same period last year. The company's oil and gas sales contributed $71.5 million, down from $86.7 million, while natural gas sales increased to $21.3 million from $13.6 million. Operating expenses for the quarter were $232.8 million, slightly lower than the $235.4 million reported in the previous year, leading to a net loss of $167.4 million, compared to a loss of $169.0 million in the prior year.

The company's balance sheet as of May 31, 2025, showed total assets of $317.7 million, a decline from $360.3 million at the end of February 2025. Current assets decreased to $101.5 million from $112.9 million, primarily due to a reduction in accounts receivable from oil and gas sales. Total liabilities increased to $4.6 million from $4.5 million, driven by higher accounts payable and accrued expenses. The stockholders' deficit widened to $4.3 million from $4.1 million, reflecting the ongoing losses.

In terms of operational developments, Norris Industries has maintained its focus on its core oil and gas properties located in Texas. The company reported a slight increase in its employee headcount, reflecting ongoing operational needs. The company continues to explore opportunities for geographic expansion and product adoption, although specific metrics were not disclosed in the filing. The company’s management indicated that it plans to conduct selected well workovers in its Jack and Palo Pinto County acreages in the upcoming fiscal year.

The filing also highlighted the company's liquidity challenges, with a cash balance of approximately $87,000 and negative working capital of about $39,000 as of May 31, 2025. Management noted that it has incurred continuous losses since 2016 and may need to seek additional capital through private placements to fund operational costs and potential property acquisitions. The company emphasized that its ability to continue operations depends on securing necessary funding and managing costs effectively.

Looking ahead, Norris Industries remains cautious about its financial outlook, given the uncertainties in the oil and gas market and the potential impact of geopolitical events. The company is committed to exploring strategic options to enhance its financial position and operational efficiency, while also preparing for potential challenges in the coming months.