0001104659-26-057242
SEC filingQ1 2026 revenue rose 15.5% YoY to $150M, driven by higher production and natural gas prices, while operating expenses declined slightly, narrowing operating loss.
For the three months ended March 31, 2026, total revenues increased $20.2 million, or 15.5%, to $150.0 million from $129.9 million in the same period of 2025. The growth was driven by higher production across all commodities and a significant increase in natural gas prices, partially offset by lower oil and NGL prices. Total operating expenses decreased $2.7 million to $135.4 million, primarily due to lower lease operating expenses and depreciation, despite higher gathering/transportation and G&A costs. The resulting operating income (revenues minus operating expenses) improved from a loss of $8.2 million to a profit of $14.6 million.
The company reports revenues by product: oil, NGLs, and natural gas. Oil revenue rose 2.7% to $90.1 million, as a 5.4% increase in production (66 MBbls) offset a 2.5% decline in realized price ($69.52 vs $71.31 per Bbl). NGL revenue surged 44.8% to $6.9 million, driven by more than doubling of production volumes (425 vs 200 MBbls) despite a 31.9% drop in price. Natural gas revenue jumped 42.1% to $49.9 million, supported by a 17.0% increase in production (9,223 vs 7,884 MMcf) and a 21.6% rise in realized price ($5.41 vs $4.45 per Mcf). Production growth came from restoring output at West Delta 73, MO 916, and Main Pass 108 fields, and reduced downtime at Mobile Bay, partially offset by a five-day shut-in at SS 349.
Management expects to incur $12.0 million to $18.0 million in additional capital expenditures for the remainder of 2026, excluding acquisitions. They believe current cash flows will cover liquidity needs, with flexibility to reduce spending if prices weaken. No formal revenue or earnings guidance is provided, but the EIA's forecast for WTI oil averaging $92.11/bbl and Henry Hub gas at $3.29/MMBtu for the rest of 2026 underlies their planning. The company declared a $0.01 per share quarterly dividend and expects to maintain liquidity through cash on hand ($130.9M), available credit ($43.9M), and an at-the-market equity program ($83.0M remaining).
Cash and cash equivalents totaled $130.9 million at March 31, 2026, down from $140.6 million at December 31, 2025. Restricted cash was nil. Total assets were $959.2 million. The company's liquidity is supported by a $50.0 million borrowing base credit facility, with $43.9 million available after $6.1 million in letters of credit.
Asset retirement obligations (ARO) were $566.0 million, including $25.5 million current. Contingent decommissioning obligations, relating to past divestitures and third-party leases, stood at $34.5 million ($8.7 million current). The company disclosed ongoing litigation with surety bond providers, with a settlement reached with two sureties under which no collateral is required through at least December 2026. No purchase commitments for supplies or capacity were disclosed.
The company declared a $0.01 per share quarterly dividend, paid $1.6 million in Q1 2026. No share repurchases were authorized or executed. Total debt, net of unamortized costs, was $351.2 million, consisting of $350.0 million principal of 10.75% Senior Second Lien Notes due 2029 and an $8.55 million TVPX loan. Net debt increased slightly by $0.4 million, primarily from amortization of debt issuance costs. Capital expenditures were $10.3 million (6.9% of revenue), all for oil and natural gas properties.
The company operates in a single reportable segment: acquisition, development, and production of oil, NGLs, and natural gas offshore in the Gulf of America. No further geographic or segment detail is provided in the Notes. The CODM uses consolidated net loss as the measure of profit or loss.