Executive Summary
Okmin Resources Inc. (OKMN) delivered a challenging QQ2 2024 quarter characterized by a pronounced revenue shortfall and an embedded negative margin framework. Revenue registered at 5,312 with cost of revenue at 11,062, producing a gross loss of 5,750 and an annualized gross margin well below parity (-108.2%). EBITDA came in at -197,789, with operating income of -199,818 and a net income of -218,757, resulting in an EPS of -0.0019 (diluted -0.0013). The quarter underscored a fragile earnings quality: operating margins (-37.6%) and net margins (-41.2%) remain deeply negative, implying that baseline cost structure and interest burden overwhelm any topline recovery at current activity levels.
Liquidity and balance-sheet dynamics amplify investor concern. Cash and cash equivalents stand at 112,636, while total debt sits at 167,135 with a net debt of 54,499. Current liabilities (200,750) vastly exceed current assets (123,031), yielding a gargantuanly low current ratio of 0.0865 and suggesting limited near-term liquidity headroom. Retained earnings are deeply negative at -1,038,991, and total equity sits at 489,315 against a total asset base of 898,564, signaling an ongoing deficit-funded balance sheet. These fundamentals are set against a backdrop of volatile energy prices and ongoing cost pressures in the Oil & Gas Integrated space.
Management commentary or earnings-call quotes were not provided in the material available for analysis; as such, the qualitative tone and guidance from leadership are not verifiable here. The investment thesis today is therefore anchored in the quantitative signals (negative profitability, stressed liquidity, leveraged balance sheet) with a caveat that any meaningful improvement would likely require decisive cost reductions, potential monetization of assets, or favorable shifts in commodity pricing and capital structure.
Key Performance Indicators
QoQ: -11.33% | YoY:-76.69%
QoQ: -54.32% | YoY:-838.01%
QoQ: -209.97% | YoY:-125.50%
QoQ: -222.72% | YoY:-138.16%
QoQ: -216.67% | YoY:-280.00%
Key Insights
Revenue: 5,312 (YoY -76.69%, QoQ -11.33%). The revenue base is markedly weaker versus prior periods, suggesting demand/pricing or volume headwinds in QQ2 2024.
Gross Profit: -5,750; Gross Margin: -1.082 (i.e., -108.2%), indicating that cost of revenue materially eclipses revenue. This negative margin reflects structural cost pressures and potential inefficiencies in the asset base.
Operating Income: -199,818; Operating Margin: -37.62%. A sizable drag from operating costs despite negative rev...
Financial Highlights
Revenue: 5,312 (YoY -76.69%, QoQ -11.33%). The revenue base is markedly weaker versus prior periods, suggesting demand/pricing or volume headwinds in QQ2 2024.
Gross Profit: -5,750; Gross Margin: -1.082 (i.e., -108.2%), indicating that cost of revenue materially eclipses revenue. This negative margin reflects structural cost pressures and potential inefficiencies in the asset base.
Operating Income: -199,818; Operating Margin: -37.62%. A sizable drag from operating costs despite negative revenue growth signaling that fixed cost absorption remains a key issue.
Net Income: -218,757; Net Margin: -41.18%. The bottom line deteriorates more than the top line, driven by high financing/other expense contributions and a lack of positive operating leverage.
EPS (diluted): -0.0013; EPS (basic): -0.0019. Per-share losses are meaningful given the company’s reported share base (approx. 116 million) and imply limited earnings upside on a per-share basis in the near term.
Cash Flow and Liquidity: Net cash from operating activities -45,866; free cash flow -45,866; cash position 112,636 at period end. The company generated negative operating cash flow in the quarter, suggesting ongoing cash burn absent material changes in working capital or earnings. Cash balance supports only limited near-term liquidity for ongoing operations.
Balance Sheet Snapshot: Total assets 898,564; total liabilities 409,249; total stockholders’ equity 489,315. Long-term debt 167,135; net debt 54,499; retained earnings -1,038,991. Current assets 123,031 versus current liabilities 200,750 indicate a strained liquidity profile (current ratio 0.0865).
Key ratios (selected): Debt to assets 0.429; EBITDA margin -37.23%; Net income margin -41.18%; Cash conversion cycle negative -264.92 days, reflecting a financing-heavy asset base with limited working-capital efficiency.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.31K |
-76.69% |
-11.33% |
| Gross Profit |
-5.75K |
-838.01% |
-54.32% |
| Operating Income |
-199.82K |
-125.50% |
-209.97% |
| Net Income |
-218.76K |
-138.16% |
-222.72% |
| EPS |
0.00 |
-280.00% |
-216.67% |
Key Financial Ratios
grossProfitMargin
-108.2%
operatingProfitMargin
-3762%
operatingCashFlowPerShare
$-0
Management Commentary
No earnings-transcript data were provided in the materials. As a result, there are no management quotes or thematically grouped transcript insights to report. If a transcript becomes available, the highlights would typically cover: (1) strategy updates (capital allocation, asset monetization, and cost-reduction initiatives), (2) operations (production trends, well performance, capex plans), (3) market conditions (commodity price outlook, hedging strategies, regulatory environment).
Forward Guidance
No forward guidance was disclosed in the provided materials. In the absence of management commentary, an assessment of achievability relies on typical sector dynamics: a sustained improvement would require (a) meaningful cost-reduction initiatives (operating expenses, G&A, and interest costs), (b) potential monetization or divestiture of non-core assets to deleverage and improve liquidity, and (c) improvement in commodity prices or favorable terms on revenue recognition. Investors should monitor: (i) any announced debt-restructuring plans or covenant relief, (ii) asset-sale or farm-out activities in Oklahoma/Kansas, (iii) capex optimization and operating efficiency metrics, and (iv) quarterly progress on reducing working capital needs to lift liquidity metrics toward more sustainable levels.