CAMBER ENERGY, INC. (CEI)·Q2 2024 Earnings Summary

Executive Summary

• Q2 2024 revenue rose 41% year over year to $9.92M, driven by stronger power generation units and service activity; sequentially, revenue increased versus Q1 2024 ($8.29M) and management highlighted approximately 19.66% quarter-over-quarter growth in a shareholder letter, though the 10‑Q shows $9.92M vs. $8.29M (+19.6%) .
• Operating loss improved QoQ to $(1.53)M from $(1.99)M, but net loss was $(2.82)M, reflecting higher interest expense and debt-related charges; diluted EPS was $(0.02), flat year over year and a substantial improvement vs. Q1’s $(0.19) .
• Listing status shifted: NYSE American commenced delisting proceedings on Aug 7, 2024; shares moved to OTC Pink (CEIN) and later received OTCQB upgrade on Aug 27, 2024, which management framed as a near-term strategy to limit exposure to external market factors .
• No formal numeric guidance was provided; S&P Global Wall Street consensus estimates for Q2 2024 were unavailable for CEI, limiting beat/miss assessment versus Street expectations.

What Went Well and What Went Wrong

What Went Well

• Power generation sales and service strength: Simson‑Maxwell units and service revenues grew materially YoY; Q2 units were $5.42M (vs. $4.37M), service $3.34M (vs. $1.50M) .
• Sequential topline momentum: Management cited approximately 19.66% revenue growth versus Q1 (Q2 revenue cited as ~$9.22M in the shareholder letter, with 10‑Q showing $9.92M vs. $8.29M), reflecting improved execution in the power solutions business .
• Strategic portfolio articulation: Management reiterated multi-pronged IP and commercialization efforts (carbon capture license; broken conductor protection; ozone-based medical waste treatment) and emphasized Simson‑Maxwell as the growth platform and vendor relationships across geographies .

Management quotes:

• “Thanks to our dedicated team, Camber has achieved many important milestones over the past several months.”
• “Revenues for the quarter ended 6/30/2024 were $9.22 million… representing an increase of approximately 19.66%.” (Shareholder letter; figures approximate)
• “Demand for primary and secondary power solutions is going to increase for many years as power consumption increases.”

What Went Wrong

• Ongoing losses and financing headwinds: Net loss was $(2.82)M in Q2 2024; other expense included interest expense $(0.55)M and amortization of debt discount $(0.84)M, underscoring leverage burden and derivative complexities .
• Going concern and working capital deficit: Management disclosed substantial doubt about going concern, citing a $(14.99)M working capital deficit and long-term debt of $38.86M net of discount at quarter end .
• Listing uncertainty and capital market constraints: NYSE American initiated delisting proceedings due to low selling price; shares moved to OTC markets, potentially reducing investor access and liquidity despite the OTCQB upgrade later in August .

Financial Results

Headline Metrics (chronological: oldest → newest)

Notes:

• The shareholder letter references Q2 revenue of ~$9.22M and a 19.66% sequential increase; the 10‑Q reports $9.92M revenue. Management labeled letter figures as “approximate.”

Segment and Revenue Detail (Simson‑Maxwell; oldest → newest)

Balance Sheet and Liquidity KPIs (oldest → newest)

Guidance Changes

No formal numeric guidance (revenue, margin, OpEx, tax rate, segment) was provided in the Q2 2024 8‑K or 10‑Q.

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available; thematic tracking derives from the 10‑Q MD&A and shareholder letter.

Management Commentary

• Prepared remarks emphasized the strategic pivot to power solutions and commercialization pathways: “Camber has a majority interest in a long‑standing, active business in a high‑demand / high‑growth sector, along with interests in industry‑changing technologies… in the early stages of commercialization.”
• On listing strategy and market volatility: “We believe it is appropriate for the near term to limit the Company and its shareholders’ exposure to as many external factors as possible while still being listed on a reputable and recognized trading platform…”
• Portfolio narrative: detailed IP portfolios in carbon capture (ESG Clean Energy System), electric transmission broken conductor protection, and ozone waste treatment, alongside the Simson‑Maxwell operating base .

Q&A Highlights

No Q2 2024 earnings call transcript was available; no Q&A disclosures were filed in the source documents.

Estimates Context

• S&P Global Wall Street consensus for CEI’s Q2 2024 EPS and revenue was unavailable due to missing mapping; therefore, a beat/miss vs. Street estimates cannot be assessed.
• Investors should rely on sequential and year-over-year comparisons until coverage normalizes.

Key Takeaways for Investors

• Power generation momentum is real: units and service both accelerated in Q2; this is the primary revenue engine post oil & gas exit and should remain the focus for near-term execution monitoring .
• Loss profile improved materially versus Q1; watch financing costs and derivative impacts (Series C preferred true‑up mechanics) as key swing factors for net results .
• Liquidity remains tight with a large working capital deficit and reliance on the TD bank facility at Simson‑Maxwell; cash improved modestly QoQ, but balance sheet constraints persist .
• Listing transition creates near‑term trading dynamics; OTCQB upgrade may stabilize access to information/liquidity, but NYSE delisting was a negative headline—monitor investor relations cadence and capital markets updates .
• Strategic IP portfolio (ESG carbon capture, broken conductor protection, ozone waste) offers optionality, but commercialization timelines and cash generation milestones remain critical—note the updated Trigger Date expectation for ESG royalties could be as early as Q1 2025 (not assured) .
• With no formal guidance or Street benchmarks, track quarterly revenue, operating loss, and Simson‑Maxwell revenue mix to gauge execution; focus on debt service, derivative liabilities, and settlement outcomes to assess risk normalization .

Additional Data References:

• Q2 2024 8‑K with shareholder letter and OTCQB update .
• Q2 2024 10‑Q financials, MD&A, liquidity, legal updates .
• Q1 2024 10‑Q for prior quarter comparative metrics .