Spindletop Oil & Gas Co. Reports Decline in Revenues and Profitability for Nine Months Ended September 30, 2024

Spindletop Oil & Gas Co. reported its financial results for the nine months ended September 30, 2024, revealing a decline in both revenues and profitability compared to the same period in 2023. Total revenues decreased to $3,025,000, down from $3,895,000, reflecting a decline of approximately 22.3%. Oil and gas revenues specifically fell to $2,600,000 from $3,459,000, a decrease of about 24.8%. This decline was attributed to reduced sales volumes and lower natural gas prices, despite a slight increase in average oil prices received.

For the nine-month period, net income was reported at $84,000, a significant drop from $605,000 in the previous year. The loss from operations increased to $(784,000) compared to a loss of $(17,000) in 2023. Earnings per share also fell to $0.01 from $0.09. In the third quarter alone, total revenues were $888,000, down from $1,674,000, with oil and gas revenues decreasing by approximately 50.9%.

Total expenses for the nine months ended September 30, 2024, were $3,809,000, slightly lower than $3,912,000 in 2023. Notably, lease operating expenses rose significantly to $1,283,000, up from $898,000, marking a 42.87% increase. However, production taxes and marketing expenses decreased, contributing to a mixed expense profile.

The company’s cash position showed improvement, with net cash provided for operating activities at $537,000, compared to $923,000 in the prior year. Cash, cash equivalents, and restricted cash increased to $7,693,000 at the end of the period, up from $7,321,000 in 2023.

On the balance sheet, total liabilities decreased slightly to $10,843,000 from $10,956,000, while total shareholders' equity increased to $17,274,000 from $17,190,000.

Strategically, Spindletop completed the sale of interests in five operated wells in Arkansas for $104,000, recognizing a gain of the same amount. Additionally, on November 1, 2024, the company acquired an operating working interest in eight wells in the Blocker Gas Field of Harrison County, Texas, with net revenue interests ranging from 81.645% to 81.789%.

The company continues to face challenges from commodity price volatility, which affects cash flows and financial health, alongside economic uncertainties that may impact demand for oil and natural gas.