Exchange: OTC | Sector: Energy | Industry: Oil Gas Exploration Production
Q1 2026
Published: Aug 12, 2025
Earnings Highlights
EPS of $0.00 increased by 46.2% from previous year
Net income of -16.59K
"N/A - transcript not available for QQ1 2026." -
PetroGas Company (PTCO) QQ1 2026 Results: Modest Scale, Negative EBITDA and Cash Burn Amid Small-Scale E&P Operations
Executive Summary
PetroGas Company, a small-scale oil and gas exploration and production operator with seven wells across 714 acres in Texas, reported QQ1 2026 results with no disclosed revenue and a clearly negative quarterly bottom line. The quarter recorded operating expenses of 4,151 USD and an interest burden of 12,443 USD, yielding a negative EBITDA of -4,151 USD and a net income of -16,594 USD. The company also showed a negative operating cash flow of -8,990 USD, while financing activities provided an offsetting +8,990 USD, resulting in a neutral net cash flow from financing but an overall cash burn at the operating level. Earnings per share stood at -0.0007 on 22.9968 million weighted average shares outstanding.
From a balance sheet perspective, total current liabilities are reported at 806,844 USD, with retained earnings deeply negative and total stockholders’ equity reported as -806,844 USD, signaling a constrained equity cushion and potential capital structure fragility. The quarterly metrics show YoY improvements in operating income and net income on a percentage basis (operating income up 74.77% YoY and net income up 42.57% YoY), yet those percentages sit atop a negative base and are not indicative of a sustainable profitable trajectory given the absence of revenue recognition in the QQ1 2026 report. The data quality in several sections (notably revenue and comprehensive balance sheet items) warrants cautious interpretation and underscores the need for a full 10-Q/annual filing to validate inputs.
Looking ahead, the near-term investment thesis is cautiously negative pending revenue generation, cost optimization, and a credible plan to address liquidity. Management commentary and forward guidance are not included in the available transcript data, limiting visibility into strategic options. Investors should monitor commodity price dynamics, potential production growth, efficiency improvements, and any strategic moves such as farm-outs or capital partnerships that could unlock value from PetroGas’s Texas assets.
Key Performance Indicators
Operating Income
-4.15K
QoQ: -18.60% | YoY:74.77%
Net Income
-16.59K
QoQ: -3.20% | YoY:42.57%
EPS
0.00
QoQ: 0.00% | YoY:46.15%
Revenue Trend
Margin Analysis
Key Insights
EBITDA: -4,151 USD
Operating Income: -4,151 USD
Net Income: -16,594 USD
EPS: -0.0007
General and Administrative Expenses: 4,151.00 USD
Financial Highlights
Revenue: Not disclosed in QQ1 2026.
Profitability and margins:
- EBITDA: -4,151 USD
- Operating Income: -4,151 USD
- Net Income: -16,594 USD
- EPS: -0.0007
Cost structure:
- General and Administrative Expenses: 4,151.00 USD
- Interest Expense: 12,443.00 USD
Liquidity and balance sheet:
- Total Current Liabilities: 806,844 USD
- Total Liabilities: 806,844 USD
- Retained Earnings: -142,299,789 USD
- Other Stockholders’ Equity: 141,492,945 USD
- Total Stockholders’ Equity: -806,844 USD
- Cash at period end: Not disclosed
Per-share and capitalization:
- Weighted Average Shares Outstanding: 22,996,680
- Shares Outstanding (approximate): 22.997 million
YoY and QoQ context (when data is available):
- Operating Income YoY: +74.77%; QoQ: -18.60%
- Net Income YoY: +42.57%; QoQ: -3.20%
- EPS YoY: +46.15%; QoQ: 0.00%
Note: Revenue and several balance sheet line items are not fully disclosed in the QQ1 2026 data presented, limiting the ability to compute conventional margin, turnover, and liquidity ratios. The YoY/QoQ context is therefore indicative rather than definitive.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-4.15K
74.77%
-18.60%
Net Income
-16.59K
42.57%
-3.20%
EPS
0.00
46.15%
0.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data for the QQ1 2026 period is not provided in the supplied materials. As a result, there are no management quotes or thematic insights to summarize. Investors should source the official earnings call transcript or the 10-Q/10-K filing for exact management remarks on production guidance, cost-reduction initiatives, capex plans, and liquidity actions.
N/A - transcript not available for QQ1 2026.
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N/A - transcript not available for QQ1 2026.
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Forward Guidance
No explicit forward guidance was disclosed in the QQ1 2026 filing provided. Given the absence of reported revenue and ongoing negative cash flow from operations, the near-term guidance, if issued in subsequent filings, would likely hinge on: (1) stabilization or growth of production from the Burns and Rogers leases or new development wells, (2) the company’s ability to reduce cash burn through cost controls and G&A efficiency, and (3) any strategic actions such as farm-outs, asset sales, or balance-sheet restructuring to address liquidity. Investors should monitor: oil and gas price trajectories, Texas lease productivity, capital expenditure plans, debt maturity profiles, and any announced strategic partnerships.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HUSA
0.00%
0.00%
-14.70%
-2.81%
CEI
25.70%
-24.00%
-2.46%
-26.90%
TPET
1.00%
-112.44%
-13.80%
-60.60%
USEG
0.00%
0.00%
-9.27%
-3.16%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2026 results present a highly challenging near-term investment backdrop for PetroGas: no reported revenue, negative EBITDA, negative net income, and operating cash burn. The stock’s OTC listing and the balance sheet fragility add to liquidity and valuation risks. The investment case hinges on material improvements in production revenue, a credible cost-reduction program, and/or strategic transactions (e.g., farm-out or asset sale) that could bolster liquidity and unlock value from the Burns and Rogers leases. Absent clear revenue generation or a tangible execution plan, the prudent stance is cautious until the company provides more robust operational metrics and forward guidance. Near-term monitoring should focus on: (1) any reported changes to production volumes and capex plans, (2) management commentary on cost structure and liquidity actions, and (3) updates on potential strategic partnerships or asset monetization.
Key Investment Factors
Growth Potential
Limited near-term growth signals given the QQ1 2026 data (no revenue reported, negative EBITDA, and negative net income). Growth potential would rely on successful scaling of production from existing wells or new drilling, improved cost structure, and strategic transactions such as farm-outs or asset monetization to unlock value from the Burns and Rogers leases. Any meaningful upside would require a credible plan to generate revenue and extend the company’s liquidity runway.
Profitability Risk
High execution and liquidity risk given negative EBITDA and net income, reliance on external capital, and limited disclosed revenue. Key risks include commodity price volatility, reliance on a small asset base (7 wells across 714 acres), potential impairment charges, and balance sheet fragility (negative equity with reported liabilities). Data quality concerns in the QQ1 2026 filing warrant cautious interpretation until the full 10-Q/annual filing is available.
Financial Position
Current data show 806,844 USD in current liabilities and total liabilities with negative equity (-806,844 USD). Retained earnings are deeply negative, while other stockholders’ equity is positive, suggesting an imbalanced capitalization. The absence of disclosed cash balances, working capital details, and debt maturity information limits assessment of liquidity and solvency.
SWOT Analysis
Strengths
Small, focused asset base with 7 oil/gas wells in Burns and Rogers leases (714 acres) which may facilitate targeted optimization.
Low G&A footprint relative to aggregate activity if cost controls are implemented, potentially enabling a path to breakeven with modest production growth.
Weaknesses
No revenue disclosed for QQ1 2026, and negative EBITDA and net income indicate current profitability challenges.
Significant interest expense (12,443 USD) relative to operating income suggests leverage-driven pressure on cash flow.
Balance sheet shows negative equity and limited disclosed liquidity, raising questions about financial flexibility and funding runway.
Data quality concerns in the presentation (incomplete balance sheet lines, missing revenue figures) limit reliable financial analysis.
Opportunities
Strategic partnerships or farm-outs could unlock value from Texas leases and provide capital for development.
Oil price increases or improved well productivity could convert the asset base into meaningful revenue and cash flow.
Operational efficiency improvements and targeted capex could reduce per-well costs and improve margins.
Threats
Commodity price volatility and potential underperformance in production relative to cost base.
Liquidity risk given negative cash flow from operations and uncertain financing needs.
Regulatory and environmental requirements in Texas could impact capex and operating costs.
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