Exchange: OTC | Sector: Energy | Industry: Oil Gas Exploration Production
Q4 2024
Published: Jun 26, 2024
Earnings Highlights
EPS of $0.00 increased by 0% from previous year
Net income of -28.89K
"N/A" - N/A
PetroGas Company (PTCO) QQ4 2024 Results: Distressed E&P Cash Flows, Negative Equity and Liquidity Pressures in a Small-Tcap Texas Oil & Gas Producer
Executive Summary
PetroGas Company (PTCO) reported a materially negative bottom line for QQ4 2024, with net income of -$28.9k and an operating loss of -$16.5k. The quarter’s cash flow from operations was -$6.5k, and free cash flow mirrored that negative cadence at -$6.5k, underscoring ongoing liquidity and profitability challenges. The company carries a sizable debt burden (total debt reported as $250.3k, with short-term debt of $393.6k in the period), and equity is deeply negative given a large accumulated deficit (-$142.3 million retained earnings) and a stockholders’ equity figure of -$799k, accompanied by a seemingly levered balance sheet with limited cash on hand (cash at end of period: $0). These factors collectively imply structural distress requiring near-term liquidity management and potential strategic actions (e.g., cost discipline, capital allocation optimization, asset monetization) to restore investor confidence and financial flexibility.
The quarter’s results show a narrow operating loss even as the company’s interest expense of $12.4k persisted and depreciation & amortization were substantial at approximately -$43.3k, contributing to an EBITDA of -$16.5k. Management commentary is not incorporated in the provided transcript data, which limits direct quotes on strategy or near-term guidance; nonetheless, the financials imply a fragile liquidity profile and a need for external capital or balance-sheet optimization to sustain ongoing operations. In the absence of revenue disclosures, the analysis focuses on cost structure, financing dynamics, and balance-sheet health to frame the investment risk and potential catalysts for improvement.
Key Performance Indicators
Operating Income
-16.45K
QoQ: -210.38% | YoY:15.64%
Net Income
-28.89K
QoQ: -61.59% | YoY:14.91%
EPS
0.00
QoQ: -85.71% | YoY:N/A
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the provided data
Operating Income: -$16,450; QoQ change: -210.38%; YoY change: +15.64% (data source indicates YoY and QoQ labels, but actual revenue data is missing)
Net Income: -$28,893; QoQ change: N/A; YoY change: +14.91%
Summary of QQ4 2024 quantitative metrics (USD, unless stated):
- Revenue: Not disclosed in the provided data
- Operating Income: -$16,450; QoQ change: -210.38%; YoY change: +15.64% (data source indicates YoY and QoQ labels, but actual revenue data is missing)
- Net Income: -$28,893; QoQ change: N/A; YoY change: +14.91%
- EBITDA: -$16,450; D&A: -$43,286.94 (negative); Interest Expense: $12,443
- EPS: -$0.0013 (diluted: -0.0013); Shares: 22,996,680
- CFO: -$6,482; Net Cash from Operating Activities: -$6,482; Free Cash Flow: -$6,482
- Cash at End: $0; Cash at Beginning: N/A; Cash Flow from Financing: +$6,482; Net Change in Cash: $0
- Balance Sheet (selected): Total Liabilities $799,228; Total Stockholders’ Equity -$799,228; Cash $0; Short-Term Debt $393,594; Total Debt $250,253; Retained Earnings -$142,292,173; Other Stockholders’ Equity $141,469,948
- Key liquidity indicators: Cash flow negative; liquidity risk elevated; equity negative reflecting accumulated deficit; debt levels high relative to cash position.
Note: Several line items (revenue, gross profit, and related ratios) are not provided in the dataset, which constrains a full traditional P&L view and the interpretation of margin dynamics. The quarterly data show a negative profitability trajectory with limited cash generation in QQ4 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-16.45K
15.64%
-210.38%
Net Income
-28.89K
14.91%
-61.59%
EPS
0.00
N/A
-85.71%
Key Financial Ratios
returnOnEquity
3.62%
debtEquityRatio
-0.31
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-5.98
priceEarningsRatio
-41.35
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- No earnings call transcript was provided in the dataset; management quotes and themes could not be incorporated.
- As a result, the analysis relies on disclosed financials and peer data for context rather than direct management guidance or qualitative insights from the QQ4 2024 call.
N/A
— N/A
N/A
— N/A
Forward Guidance
- No explicit forward guidance is available in the provided data. Given the balance-sheet stress (negative equity, uneven cash position) and a high short-term debt load, near-term guidance would likely focus on liquidity preservation, debt restructuring, cost optimization, and potential asset monetization. Without management-provided targets, investors should monitor liquidity runway, headline debt maturities, and any disclosed strategic actions (e.g., asset sales, joint ventures or farm-outs) in subsequent filings or press releases.
- Industry backdrop (Oil & Gas E&P) remains sensitive to commodity price volatility. A favorable commodity environment or successful capital-light optimization could improve the cash-generation profile, but the current data suggests a high-risk, capital-intensive setup needing external support or structural changes to re-enter a growth trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PTCO Focus
0.00%
0.00%
3.62%
-41.35%
HUSA
26.40%
-1.53%
-32.40%
-1.51%
CEI
26.80%
-36.10%
-51.40%
-85.20%
TPET
0.00%
0.00%
-13.50%
-2.35%
USEG
7.81%
-27.10%
-42.60%
-32.00%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the distressed financials and lack of revenue data in QQ4 2024, PetroGas presents high-uncertainty risk with limited near-term upside without strategic actions. The key investment thesis hinges on: (1) successful balance-sheet restructuring and liquidity restoration, (2) monetization of non-core assets or favorable asset deals to reduce leverage, and (3) stabilization or growth of cash flows through a scalable production program. Until such actions are evidenced, the stock remains a high-risk, high-uncertainty opportunity with potential downside tied to debt service and equity erosion. Investors should monitor debt maturities, any announced asset disposition plans, and management commentary in subsequent filings for signs of a credible turnaround path.
Key Investment Factors
Growth Potential
Growth potential hinges on: (1) stabilizing or increasing production from the Burns and Rogers leases (714 acres, 7 wells) and (2) monetizing non-core assets or arrangements to de-leverage. Given the lack of revenue data, growth potential is contingent on operational scale-up or asset divestitures that free capital for drilling programs or debt reduction.
Profitability Risk
Key risks include (1) negative equity and weak balance sheet signaling potential solvency risk, (2) high short-term debt relative to cash, (3) limited visibility on revenue growth and margins due to missing topline data, (4) commodity price volatility impacting cash flows, and (5) execution risk around any asset sales or capital structure changes in a distressed E&P environment.
Financial Position
Financial position is distressed: negative retained earnings (-$142.3M), negative total stockholders’ equity (-$799k), total liabilities ($799k) roughly equal to equity magnitude, and cash of $0 at period end. Short-term debt ($393.6k) dwarfs current cash, while total debt ($250.3k) remains nontrivial in a small-cap context. The company lacks visible revenue data in QQ4 2024, complicating margin and coverage assessments. Investors should expect asset-light monetization opportunities or equity/debt financing to improve liquidity.
SWOT Analysis
Strengths
Texas shallow-oil/ gas asset base (Burns and Rogers leases) with approximately 714 acres and 7 wells, potential upside if production volumes increase.
Lean operating footprint potentially enabling lower unit costs if production scales.
Weaknesses
Distressed liquidity and negative equity; large accumulated deficit (-$142.3M) with equity of -$0.80M.
Missing topline revenue and margins data; reported quarterly profitability is negative.
High level of short-term debt relative to cash; cash balance at period end = $0, indicating limited liquidity flexibility.
Opportunities
Asset monetization or strategic partnerships to deleverage and unlock value from non-core assets.
Oil and gas price upcycles could improve cash flows if production scales; potential improvements in operating efficiency.
Potential restructuring measures (debt refinancing, cost controls) that could stabilize liquidity and support future drilling programs.
Threats
Commodity price volatility impacting cash flow and project economics in an E&P micro-cap.
Credit and liquidity risk given zero cash and negative equity; potential covenant issues if debt is restructured.
Operational risk in wells and reservoir performance without clear visibility into production volumes or reserves.