Executive Summary

Q1 2019 was weak operationally: revenue fell 67% year over year to $0.251M and the company posted a net loss attributable to common shareholders of $0.297M; management cited lower production from Reeves County and Permian pricing bottlenecks as key drivers .
Costs improved: lease operating expense decreased 43% YoY to $0.149M and G&A fell 44% YoY to $0.250M, reflecting cost controls after prior leadership changes .
Near-term catalyst: fracking commenced on the Frost #1H well (Yoakum County) in May with facilities in place and saltwater disposal access; management expects to bring product to sale “as soon as possible” and sees up to five additional horizontals on the lease, contingent on results and capital .
Reeves County remains a swing factor: new operator has yet to present a drilling plan; despite a profitable Q4 2018 (net income $0.065M), Q1 2019 volumes/pricing slumped as decline rates and takeaway constraints weighed on results .

What Went Well and What Went Wrong

What Went Well

Lease operating expense and G&A were materially lower YoY, indicating progress on cost discipline: LOE $0.149M (–43% YoY), G&A $0.250M (–44% YoY) .
Yoakum County development advanced: “The operator of our Frost #1H well has initiated fracking operations…Production facilities have been built…including access to a saltwater disposal well. We anticipate bringing product to sale as soon as possible” — Interim CEO Jim Schoonover .
2018 groundwork: HUSA highlighted 2018 growth, cost control, and Q4 profitability, expecting Reeves County SWD access to lower field costs going forward .

What Went Wrong

Revenue collapsed YoY: $0.251M (–67%), driven by natural decline in Reeves County and adverse Permian pricing; average oil price fell 28% and gas price fell 27% YoY .
Volumes dropped: net oil production fell to 3,969 bbl (from 7,978) and net gas to 24,810 Mcf (from 63,409) reflecting declines at Reeves County wells .
Reeves County development uncertainty: new operator has not yet presented a plan, delaying drilling resumption and leaving production trajectory dependent on external decisions .

Financial Results

Quarterly comparison vs prior quarter (Q4 2018) and prior quarter (Q3 2018)

Metric	Q3 2018	Q4 2018	Q1 2019
Revenue ($USD Millions)	$0.553	$0.362 (FY $2.243 − 9M $1.882)	$0.251
Net Income ($USD Millions)	$(0.786)	$0.065	$(0.240) (net loss before preferred dividends)
Net Loss attributable to common ($USD Millions)	$(0.850)	n/a	$(0.297)
Lease Operating Expense ($USD Millions)	$0.278	n/a	$0.149
G&A Expense ($USD Millions)	$0.302	n/a	$0.250
Depreciation & Depletion ($USD Millions)	$0.090	n/a	$0.093

Year-over-year comparison (Q1 2019 vs Q1 2018)

Metric	Q1 2018	Q1 2019
Revenue ($USD Millions)	$0.754	$0.251
Net Loss ($USD Millions)	$(0.053)	$(0.240)
Net Loss attributable to common ($USD Millions)	$(0.256)	$(0.297)
Diluted EPS ($USD)	$(0.00)	$(0.00)
Lease Operating Expense ($USD Millions)	$0.263	$0.149
G&A Expense ($USD Millions)	$0.447	$0.250
Depreciation & Depletion ($USD Millions)	$0.097	$0.093

Segment / product breakdown (Q1 2019 vs Q1 2018)

Metric	Q1 2018	Q1 2019
Oil sales ($USD)	$485,532	$173,777
Natural gas sales ($USD)	$268,625	$27,788
NGL sales ($USD)	$0	$49,155
Total revenue ($USD)	$754,157	$250,720

KPIs (Production and pricing)

KPI	Q3 2018	Q1 2018	Q1 2019
Net oil production (Bbl)	5,426	7,978	3,969
Net gas production (Mcf)	80,000	63,409	24,810
Avg oil sales price ($/Bbl)	$54.92	$60.85	$43.79
Avg gas sales price ($/Mcf)	$3.19	$4.24	$3.08
Gross producing wells (count)	10	10	10
Net producing wells (count)	0.98	0.98	0.98

Highlights:

Bold negative surprise: revenue down 67% YoY; average realized oil price down 28% and gas down 27% YoY due to Permian takeaway bottlenecks .
Bold positive: LOE and G&A down ~40+% YoY reflecting cost actions .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Yoakum County development (Frost #1H frack/startup)	2019 Q2 execution after Q1 setup	No prior formal quantitative guidance	Fracking initiated; “bring product to sale as soon as possible”; facilities support multi-well program	Raised (qualitative execution update)
Yoakum County drilling count potential	2019+	n/a	Operator indicated lease “may support up to five additional horizontal wells” contingent on results	New qualitative outlook
Reeves County plan	2019	Expect resumption subject to operator plan	New operator has not yet communicated definitive 2019 drilling plan	Maintained uncertainty
Capex for second Yoakum well (HUSA share)	2019	n/a	~$0.325M planned, funded from cash on hand	New capex detail

No formal revenue/EPS/margin guidance was provided in filings; management commentary remains qualitative .

Earnings Call Themes & Trends

(No earnings call transcript available for Q1 2019; themes derived from 10-Q and press releases.)

Topic	Previous Mentions (Q3 2018)	Previous Mentions (Q4 2018)	Current Period (Q1 2019)	Trend
Permian takeaway and pricing	Expect SWD to reduce costs; infrastructure constraints noted	SWD expected “near future” to lower field costs	Pricing bottlenecks depressed realized prices; SWD access in Yoakum facilities	Improving cost environment, pricing still pressured
Reeves County operator plan	New operator took control; awaiting plan	Anticipated resumption of drilling subject to plan	No definitive plan communicated	Continued uncertainty
Cost control (G&A/LOE)	Lower G&A vs 2017	2018 G&A −33% YoY; Q4 profit	Q1 G&A −44% YoY; LOE −43% YoY	Positive
Yoakum County execution	Leasing and pre-drill activities	Pre-drilling ops; TD in Jan 2019	Fracking initiated, startup imminent	Advancing
Colombian assets	Permitting delays and discussions with ANH	Deferred; extensions granted	No activity, not a near-term driver	Static

Management Commentary

“2018 was a pivotal transition year…with substantial production and revenue growth…keen focus on controlling and lowering costs, culminating in a net profit in the fourth quarter…With a salt water disposal well…we expect field level operating costs to go down and profitability to increase” — Interim CEO Jim Schoonover .
“Fracking operations on the Frost #1H well…Production facilities…including access to a saltwater disposal well. We anticipate bringing product to sale as soon as possible…[the] lease acreage may support up to five additional horizontal wells” — Interim CEO Jim Schoonover .

Q&A Highlights

No Q1 2019 earnings call transcript was found; no Q&A available in filings [ListDocuments earnings-call-transcript: none].

Estimates Context

We attempted to retrieve Wall Street consensus (EPS, revenue, EBITDA) for Q1 2019 via S&P Global; data were unavailable due to request limits/coverage constraints (tool error). As a result, no vs-estimates comparison can be provided for this quarter [GetEstimates error].
Note: If estimates are required, coverage for HUSA appears limited; the company did not furnish formal quantitative guidance in its filings .

Key Takeaways for Investors

Revenue and volumes fell sharply YoY due to decline rates and Permian pricing constraints; until Reeves County drilling resumes or Yoakum contributes meaningfully, top-line will be volatile .
Cost discipline is evident; LOE and G&A reductions cushioned the downturn and support margin recovery when volumes normalize .
Near-term trading catalyst: initial production from Frost #1H and clarity on the operator’s Reeves County plan; multi-well Yoakum potential provides optionality if results are strong .
Liquidity/capex: HUSA plans ~$0.325M for a second Yoakum well funded by cash; broader Reeves participation may require additional capital; ATM program remains an available lever .
Pricing risk persists: average realized prices fell materially; broader Permian takeaway improvements and SWD access can lower costs, but price recovery is an external variable .
No formal guidance and limited sell-side coverage increase event risk; stock likely reacts to operational updates (IP rates, pad development pace) rather than quarterly prints .
Medium-term thesis hinges on converting Yoakum potential and re-accelerating Reeves drilling while maintaining cost control; watch for operator plans, initial well performance, and capital raises .

HOUSTON AMERICAN ENERGY CORP (HUSA)·Q1 2019 Earnings Summary