Executive Summary

Calendar Q2 2016 (quarter ended June 30, 2016): revenue fell to $0.15M and diluted loss per share widened to $(0.80); operating loss was $(0.94)M and net loss was $(1.37)M, driven by lower volumes and higher lease operating/workover expense .
Year-over-year declines reflect a 49% volume drop and a 24% realized price decline; management restarted workovers late in the quarter to bring shut-in wells online, expecting production increases in coming quarters .
Liquidity and going-concern issues remained acute: working capital deficit expanded to $10.9M; financing hinged on closing the pending asset acquisition (Hunton assets) in Aug/Sep 2016 and related capital transactions .
NYSE MKT delivered a non‑compliance notice in July (equity deficiency); management submitted a plan to regain compliance, with acquisition financing and ~1,000 BOE/d target production from acquired assets cited as remediation catalysts .
No Wall Street consensus estimates were available via S&P Global for CEI; estimate comparison and beat/miss assessment therefore not applicable (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Workover program resumed late June, returning multiple shut-in wells to service; management reported an uptick in production volumes and expects continued increases as legacy wells return online (“we saw a resulting uptick in our production volumes. We expect to see an increase in production from our legacy wells continue throughout the remainder of this year.”) .
Operating efficiencies: certain G&A categories declined excluding transaction costs; share-based compensation decreased ~30% year over year .
Strategic path clarified: anticipated closing of Hunton acquisition in Aug/Sep 2016 with plan to drill six initial wells and rebrand as Camber Energy, expanding footprint and targeted development schedule .

What Went Wrong

Revenue deterioration: net operating revenues fell to $0.153M from $0.394M YoY due to 49% volume decline and lower realized prices, compressing scale and profitability .
Cost pressure: lease operating expenses rose to $0.276M (up ~70% YoY), largely from workovers; total operating expenses increased to ~$1.095M, deepening operating loss .
Liquidity and going concern: working capital deficit widened to $10.9M; dependence on pending financing/asset acquisition remained high with explicit going‑concern disclosure, and NYSE MKT compliance deficiency presented listing risk .

Financial Results

Calendar Q2 2016 corresponds to the quarter ended June 30, 2016 (reported by Lucas Energy as FY2017 Q1).

Metric	Q2 2015 (Jun 30, 2015)	Q4 2015 (Dec 31, 2015)	Q2 2016 (Jun 30, 2016)
Revenue ($USD Millions)	$0.394	$0.184	$0.153
Diluted EPS ($USD)	$(0.73)	$(0.70)	$(0.80)
Operating Loss ($USD Millions)	$(0.632)	$(0.632) (approx., operating loss line comparable)	$(0.941)
Net Loss ($USD Millions)	$(1.032)	$(1.023)	$(1.370)

Key operating and KPI detail:

KPI	Q2 2015	Q2 2016
Crude Oil Sales Volumes (Bbls)	7,045	3,617
Average Realized Price ($/Bbl)	$55.89	$42.37
Lease Operating Expenses ($USD Thousands)	$163	$276
Workover Expense ($USD Thousands)	$20	$100

Narrative drivers:

YoY revenue decline ($0.24M) reflects unfavorable volume variance (~~$0.15M) and price variance (~~$0.09M) .
LOE increase includes concentrated workover spend to return wells to service .

Estimates comparison:

No S&P Global consensus EPS or revenue estimates were available for CEI for Q2 2016 (S&P Global data unavailable).

Guidance Changes

Formal numerical guidance was not provided. Strategic/timing updates disclosed:

Metric/Item	Period	Previous Guidance	Current Guidance	Change
Hunton Asset Acquisition Closing	FY2017 (calendar Q3 2016)	Target closing in first quarter FY2017	Anticipated closing Aug/Sep 2016; rebrand to Camber Energy upon closing	Maintained timeline, narrowed window
Initial Drilling Program (Hunton)	Post-close FY2017	“intend to drill six initial wells”	Six initial wells refined; studying Prue Sand; plan contingent on funding and close	Maintained, added details
Production Outlook (Legacy Wells)	Remainder of calendar 2016	N/A	Expect increases as workovers bring shut-ins online	New qualitative outlook
Listing Compliance Plan	Through Jan 2018	N/A	Plan submitted to NYSE MKT following non-compliance notice	New process disclosure

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2016. Themes synthesized from press release and 10‑Q narrative:

Topic	Previous Mentions (Q4 2015 press release)	Current Period (Q2 2016)	Trend
Liquidity/Going Concern	Amended credit lines; highlighted financing needs and working capital deficit	Working capital deficit of $10.9M; explicit going-concern language; dependence on acquisition financing	Deteriorated; higher urgency
Asset Acquisition Strategy	Pending Hunton acquisition; plan to drill 6 wells; rebrand to Camber	Anticipated closing Aug/Sep; expanded narrative (Hunton + Prue Sand; 19 sands); rebrand post-close	Execution nearer; more detail
Production/Operations	Prior declines tied to offset interference and front-end loaded programs	Workovers resumed; shut-ins returned, uptick observed; expected ongoing increases	Improving operationally
Listing/Exchange Compliance	N/A	NYSE MKT non-compliance notice; plan submission and remediation path	New risk; active remediation
Financing Transactions	Convertible notes updates; debenture/warrants plan	Debenture ($530k), Series C preferred plan ($5.26M), multiple warrants; advances from Sellers	Continued instrument complexity

Management Commentary

Key strategic messages:

“With the shareholder vote on the proposed acquisition… the recent financial results will be less meaningful if the transaction is approved… we are eager to bring it to a close.” — Anthony C. Schnur, CEO .
“We resumed our workover program in late June… returned several shut-in wells back into service, and… saw a resulting uptick in our production volumes.” .
Plan to close acquisition and drill six initial wells; broader development potential across multiple sands (Hunton, Prue, Mississippi Lime, Woodford) .

Q&A Highlights

No earnings call transcript or Q&A was available for Q2 2016. Disclosures were provided via 8‑K press releases and the 10‑Q filing .

Estimates Context

Wall Street consensus estimates (EPS, revenue) via S&P Global were not available for CEI for calendar Q2 2016. As a result, beat/miss assessment is not applicable (S&P Global data unavailable).

Key Takeaways for Investors

Operational actions (workovers) began to reverse production declines; however, scale remains small and cost per barrel elevated due to LOE/workover intensity .
The near‑term equity story hinges on closing the Hunton acquisition and associated financing, which would add ~1,000 BOE/d and a development inventory, and trigger rebranding to Camber Energy .
Liquidity remains constrained (working capital deficit ~$10.9M), with explicit going‑concern disclosure; capital structure complexity (convertibles, debenture, warrants) is high and dilutive risk persists .
Exchange listing risk emerged (NYSE MKT non‑compliance); management submitted a plan—timely progress on equity and asset transactions is a key listing and valuation catalyst .
In absence of analyst coverage and estimates, trading is likely driven by transaction milestones (proxy vote, close, NYSE plan acceptance) and production updates from legacy workovers .
Medium‑term thesis depends on capital discipline post‑close: executing six initial Hunton wells, managing LOE, and realizing identified multi‑sands optionality to scale production sustainably .
Risk management: monitor debt maturities (Rogers loan), funding from preferred/convertible structures, and any delays in closing that could exacerbate liquidity pressure .

Sources: Q2 2016 press release and 8‑K ; Q2 2016 10‑Q financials and MD&A ; Q4 2015 press release ; NYSE MKT notice press release .

CAMBER ENERGY, INC. (CEI)·Q2 2016 Earnings Summary