Executive Summary

Q4 FY2025 capped a solid year: FY2025 net income rose 27% to $1.71M ($0.81 diluted EPS) on 11% revenue growth, driven by higher production volumes despite weaker realized natural gas pricing; oil comprised ~86% of sales for the year .
Quarterly trajectory was positive into year-end: operating revenues reached $1.99M in Q4, up from $1.89M in Q3 and $1.75M in Q2; EPS also improved as margins expanded alongside higher oil mix and volume growth (Q4 revenue via S&P Global estimates data*)
No earnings call transcript was available for Q4; updates came through 8‑K/press releases, including operations, reserves, and capital allocation .
Catalysts included a regular annual dividend of $0.10 and confirmation of a debt‑free balance sheet with ~$2.2M cash, alongside an active drilling/completion program planned for FY2026 .

What Went Well and What Went Wrong

Production-led growth offset price headwinds: FY2025 operating revenues increased 11% on higher volumes, with oil contributing ~86% of sales, supporting margin resilience .
Strong profitability and cash position: FY2025 net income rose 27% to $1.71M ($0.81 diluted EPS), with approximately $2.2M cash on hand and no outstanding bank line indebtedness .
Active portfolio expansion: 35 wells participated in FY2025 and ~840 gross wells acquired via royalty/mineral interests (~2.31 net), diversifying exposure and adding future development options .

Natural gas price pressure and infrastructure constraints: realized natural gas price averaged $1.70/mcf in FY2025, with press release citing limited Permian pipeline capacity as a headwind .
Reserve reductions on price effects: estimated proved oil reserves fell 15% to 675 Mbbl and gas reserves declined 4% to 4.36 Bcf as lower commodity prices drove PV‑10 and reserve revisions .
Coverage and disclosure limitations: no Q4 earnings call transcript available; consensus coverage appears limited (EPS/revenue estimates not available via S&P Global), reducing external estimate benchmarking (consensus unavail via S&P Global*).

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD)	$1,749,227	$1,891,265	$1,989,739*
Net Income ($USD)	$317,198	$469,133	$634,998*
Diluted EPS ($USD)	$0.15	$0.22	$0.30*
EBITDA ($USD)	$1,001,297*	$1,078,725*	$1,405,667*
EBITDA Margin (%)	57.24%*	57.04%*	70.65%*
Net Income Margin (%)	18.13%*	24.81%*	31.91%*

Values with asterisk retrieved from S&P Global.
Note: Document-cited quarterly revenue and EPS for Q2/Q3 reflect company press releases; Q4 quarterly detail sourced from S&P Global due to the FY press release structure .

Metric	Q1 2025	Q2 2025 (First Six Months)	Q3 2025 (First Nine Months)	FY 2025
Oil % of Operating Revenues	87%	87%	86%	~86%

KPI	FY 2025
Average realized oil price ($/bbl)	$73.54
Average realized gas price ($/mcf)	$1.70
Present value of proved reserves (PV‑10, $)	~$23,000,000
Proved oil reserves	675 Mbbl (−15% YoY)
Proved gas reserves	4.360 Bcf (−4% YoY)
Royalty revenue share	~31% of operating revenues
Cash on hand	~$2.2M
Bank line indebtedness	$0 outstanding

Metric	Period	Previous Guidance	Current Guidance	Change
Wells to be drilled (participation)	FY2026	N/A	27 wells	Initiated
Wells to be completed (participation)	FY2026	N/A	17 wells	Initiated
Aggregate capital for wells	FY2026	N/A	~$1.2M (approx. $300k spent to date)	Initiated
Regular annual dividend	FY2025/Q4	N/A	$0.10 per share (payable June 16, 2025; record June 2)	Initiated

No Q4 earnings call transcript available. Themes drawn from Q2/Q3/FY press releases.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4/FY)	Trend
Production volumes and oil mix	Volume growth; oil 87% (6M), 86% (9M)	Oil ~86% of FY sales	Stable high oil mix, supportive of margins
Natural gas pricing/infrastructure	Low NG prices due to Permian pipeline capacity	Continued weak NG realizations; $1.70/mcf	Persistent headwind
Drilling participation	FY2025 plan 28–30 drills; 19 completions; ~$1.8–$2.3M	FY2026 plan: 27 drills/17 completions; ~$1.2M	Program maintained with measured spend
Royalty/mineral acquisitions	~$1.5–$2.0M; ~600–700 wells across 9 states	~840 gross wells acquired; ~$2.0M	Continued portfolio expansion
Balance sheet/liquidity	Not detailed	~$2.2M cash; no bank debt	Strengthened liquidity position
Reserves/PV‑10	Not addressed	PV‑10 ~$23M; reserves down on price	Price-driven reserve sensitivity

“We have approximately $2.2 million cash on hand, no outstanding indebtedness on our bank line of credit and are actively seeking opportunities.” — Tammy L. McComic, President & CFO .
Press release commentary emphasized volume growth offsetting lower realized natural gas prices and continued participation in horizontal drilling, notably in the Delaware Basin (Lea/Eddy, NM) .

No Q4 earnings call transcript was available; therefore, no Q&A disclosures for this period .

S&P Global shows no published consensus for EPS or revenue for Q4 FY2025 (Primary EPS Consensus Mean and Revenue Consensus Mean unavailable); number of estimates also unavailable*.
Actual quarterly revenue trajectory (S&P Global data*) indicates $1.75M (Q2), $1.89M (Q3), $1.99M (Q4), consistent with company press release figures for Q2/Q3 and implying sequential improvement into Q4 .

Sequential acceleration into Q4: revenue and EPS improved quarter-over-quarter through year-end, underpinned by higher oil mix and production volumes .
Pricing headwinds persist on gas: realized NG prices remained depressed due to pipeline constraints; oil prices supported revenue mix and margins .
Conservative capital allocation: FY2026 program sized at ~$1.2M for 27 drills/17 completions; focus remains on measured participation and royalty acquisitions .
Balance sheet strength: ~$2.2M cash and no bank debt provide flexibility to pursue opportunities and sustain shareholder returns (regular $0.10 dividend) .
Reserve sensitivity to pricing: PV‑10 ~$23M with YoY reserve declines driven by commodity price changes; monitor price environment for reserve trajectory .
Coverage is thin: absence of consensus estimates and call transcript suggests limited external scrutiny; price moves may be more sensitive to operational updates and commodity variance (consensus unavail via S&P Global*).
Watch operational execution and infrastructure developments: reduced Permian pipeline constraints or sustained oil strength could further expand margins and cash generation .

Footnote: Values marked with an asterisk were retrieved from S&P Global.