The case for & against
Bull & Bear analysis
Bearish
Bull says
- ↑Pivot to non-hydrocarbon helium exploits Keevan Dome capacity
- ↑Semiconductor demand underpins helium revenue growth forecasts
- ↑$10M+ cash and zero debt support new plant build
- ↑CCS plant to sequester ~250k tons CO2 annually for credits
- ↑Strong analyst revisions indicate upside earnings expectations
- ↑Positive sensitivity to rising oil prices may boost margins
Bear says
- ↓Q1 revenues dropped to $2.2M from $5.4M YoY after divestitures
- ↓Net loss of $12M in Q4 2024 highlights ongoing losses
- ↓Negative earnings yield and weak profitability raise margin concerns
- ↓High short interest reflects investor skepticism
- ↓Smaller size vs. peers may limit competitive scale advantages
- ↓Montana plant faces potential delays and execution risks
Earnings Call · Q3 2024 · Mgmt. Guidance
Updated 05-30-2026bullish
Transcript signals
Bull points
- Cash general administrative expenses was $1.6 million for the third quarter of 2024, a reduction of 27% when compared to the same period of 2023. Year-to-date cash general administrative expenses have decreased $1.8 million when compared to the same period from a year ago, reflecting lower compensation and a variety of overhead costs as we divest properties and focus on our helium project.
- the company reported a net loss of $2.2 million in the third quarter of 2024, an improvement of $6.6 million when compared to the third quarter of 2023 due to a significant reduction in operating costs partially offset by reduced revenue.
- As of September 30, 2024, there was no debt outstanding on our $20 million credit facility, and our cash position stood at $1.2 million.
Bear points
- Total oil and gas sales for the quarter amounted to approximately $5 million, reflecting a decrease from $8.7 million in the same period last year. This decline was attributed to a 30% reduction in volumes, partially offset by 18% increase in realized prices.
- It'll be in the materials. I don't think we filed our actual reserve number in the SEC filing. It's around $35 million now, give or take a little bit with where pricing is post – I'm sorry – That's a wrong number. It's right around 51. I just got corrected.
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