Executive Summary
Okmin Resources Inc (OKMN) reported a modest revenue base in QQ3 2024 with material profitability challenges and a fragile liquidity position. Revenue of 6.159 million accompanied a gross loss of 3.599 million, yielding an EBITDA of -62.6 million? (Note: EBITDA shown as -62,636 in thousands in the dataset) and a net loss of 67.241 thousand. The quarter exhibits the classic commodity-and-cost structure risk typical of small, early-stage oil and gas operators: fixed SG&A largely drives losses while revenue remains constrained. Crucially, cash flow from operations was positive at 102.9 thousand, underscoring a working capital dynamic that temporarily supports cash generation despite a net loss. The balance sheet shows a sizable long-term debt load (161.1 million) and a negative working capital position (current assets 141.1k vs current liabilities 263.8k), implying meaningful liquidity pressure absent continued financing or asset monetization. Investors should weigh the near-term liquidity risk and the need for operational leverage improvements against any potential upside from asset optimization, reserve development, or a stronger oil/gas price environment.
Key metrics highlight a deteriorating profitability backdrop versus the prior year, with YoY and QoQ shifts in margins indicating limited operating leverage. The market environment (small-cap E&P) remains highly price sensitive, and management commentary (where available) would be critical to confirm a path to sustainable cash generation. Absent explicit forward guidance, the near-term investment thesis hinges on balance sheet repair, potential asset monetization, and disciplined cost management to restore liquidity and cash flow resilience.
Key Performance Indicators
QoQ: 15.95% | YoY:-27.24%
Key Insights
Revenue: 6.159M in QQ3 2024; YoY change -27.24%, QoQ change +15.95%. Gross Profit: -3.599M; Gross Margin: -5.84% (vs. prior year, gross margin improved by +78.29% YoY and +37.41% QoQ, reflecting a negative base and potential temporary leverage). Operating Income: -63.995M; Operating Margin: -10.39%. Net Income: -67.241M; Net Margin: -10.92%. EBITDA: -62.636M; EBITDA Margin: -10.17%. EPS: -0.0006 basic, -0.0004 diluted; YoY EPS change +45.45%, QoQ change +68.42%. Cash Flow: Net cash provided by o...
Financial Highlights
Revenue: 6.159M in QQ3 2024; YoY change -27.24%, QoQ change +15.95%. Gross Profit: -3.599M; Gross Margin: -5.84% (vs. prior year, gross margin improved by +78.29% YoY and +37.41% QoQ, reflecting a negative base and potential temporary leverage). Operating Income: -63.995M; Operating Margin: -10.39%. Net Income: -67.241M; Net Margin: -10.92%. EBITDA: -62.636M; EBITDA Margin: -10.17%. EPS: -0.0006 basic, -0.0004 diluted; YoY EPS change +45.45%, QoQ change +68.42%. Cash Flow: Net cash provided by operating activities 102.942k; Free cash flow 102.942k. Balance Sheet: Cash and cash equivalents 83.646k; Total current assets 141.077k; Total current liabilities 263.750k; Net working capital negative at roughly -122.673k. Long-term debt 161.135k; Total liabilities 470.449k; Total stockholders’ equity 368.188k; Retained earnings negative -1.161M. Key liquidity ratios: current ratio 0.0568; quick ratio 0.0568; cash ratio 0.0568. Interest Coverage 18.14x. Debt metrics reflect a modest leverage profile relative to asset scale but severe liquidity constraints; Cash flow from operations suggests some working capital relief, yet balance sheet stress remains a constraint to near-term profitability and investment upside.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.16K |
-27.24% |
15.95% |
| Gross Profit |
-3.60K |
78.29% |
37.41% |
| Operating Income |
-64.00K |
47.47% |
67.97% |
| Net Income |
-67.24K |
44.49% |
69.26% |
| EPS |
0.00 |
45.45% |
68.42% |
Key Financial Ratios
operatingProfitMargin
-1039%
operatingCashFlowPerShare
$-0
priceEarningsRatio
-21.04
Management Commentary
No earnings call transcript is provided in the dataset. As a result, direct management quotes or theme-level takeaways from the QQ3 2024 earnings call are not available within this analysis. The assessment below relies on reported financials and the implied implications for operations, liquidity, and financial flexibility. If a transcript becomes available, we will integrate management remarks on cost control, capital allocation priorities, reserve outlook, and any planned asset dispositions or refinancing strategies.
Forward Guidance
Explicit forward guidance is not included in the QQ3 2024 release. Given the negative gross margin, sizable fixed operating expenses, and a fragile liquidity position, the near-term outlook is contingent on three factors: (1) capital-structure normalization (debt refinancing, potential equity issuance, or asset monetization to shore up liquidity); (2) improvement in commodity prices and/or well-portfolio optimization to lift gross margins and drive positive EBITDA; (3) cost rationalization and working capital discipline to convert operating cash flow into a more robust, recurring source of liquidity. Monitoring points: upcoming debt maturities, covenant tests, any announced asset sales or farm-out deals, plans for drilling or development spending, and management commentary on runway for sustaining operations without additional financing.