Royale Energy Files Q2 2024 10-Q

Ticker: ROYL · Form: 10-Q · Filed: 2024-08-14T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, oil-and-gas, sec-filing

TL;DR

Royale Energy filed its Q2 10-Q on 8/14. Check financials.

AI Summary

Royale Energy, Inc. filed its 10-Q for the quarterly period ended June 30, 2024. The company, incorporated in Delaware, operates in the Crude Petroleum & Natural Gas sector. Its principal executive offices are located at 1530 Hilton Head Rd, El Cajon, CA. The filing was made on August 14, 2024, under SEC file number 000-55912.

Why It Matters

This filing provides an update on Royale Energy's financial performance and operational status for the second quarter of 2024, which is crucial for investors to assess the company's current standing in the oil and gas industry.

Risk Assessment

Risk Level: medium — As a company in the volatile oil and gas sector, Royale Energy faces inherent risks related to commodity prices, regulatory changes, and operational challenges.

Key Players & Entities

FAQ

What is the SEC file number for Royale Energy, Inc.'s 10-Q filing?

The SEC file number for Royale Energy, Inc.'s 10-Q filing is 000-55912.

What period does this 10-Q report cover?

This 10-Q report covers the quarterly period ended June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed with the SEC on August 14, 2024.

In which state was Royale Energy, Inc. incorporated?

Royale Energy, Inc. was incorporated in Delaware.

What is the primary business of Royale Energy, Inc. according to the filing?

According to the filing, Royale Energy, Inc. operates in the Crude Petroleum & Natural Gas sector.

Filing Stats: 4,444 words · 18 min read · ~15 pages · Grade level 15.9 · Accepted 2024-08-14 14:42:05

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION 21

Legal Proceedings

Item 1. Legal Proceedings 21

Risk Factors

Item 1A. Risk Factors 21

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 21

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 21

Other Information

Item 5. Other Information 21

Exhibits

Item 6. Exhibits 21

Signatures

Signatures 22

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ROYALE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 ASSETS (unaudited) Current Assets Cash and Cash Equivalents $ 1,449,068 $ 2,202,521 Restricted Cash 4,182,800 3,325,000 Other Receivables, net 698,006 1,036,401 Revenue Receivables 394,383 878,378 Prepaid Expenses 620,600 558,169 Deferred Drilling Costs 644,443 1,669,149 Total Current Assets 7,989,300 9,669,618 Right of Use Assets - Leases 210,421 254,008 Other Assets 589,865 589,865 Oil and Gas Properties, (Successful Efforts Basis), Equipment and Fixtures, net 4,967,971 2,401,902 Total Assets $ 13,757,557 $ 12,915,393 See notes to unaudited condensed consolidated financial statements. 3 Table of Contents ROYALE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) Current Liabilities: Accounts Payable and Accrued Expenses $ 6,116,199 $ 5,482,074 Royalties Payable 611,833 612,925 Due to RMX Resources, LLC 23,087 23,087 Accrued Liabilities 432,320 215,693 Asset Retirement Obligation - Current 675,000 675,000 Deferred Drilling Obligation 9,465,832 9,761,927 Operating Leases - Current 80,118 83,230 Total Current Liabilities 17,404,389 16,853,936 Noncurrent Liabilities: Accrued Liabilities - Long Term 1,306,605 1,306,605 Accrued Unpaid Guaranteed Payments 1,616,205 1,616,205 Note Payable to Related Parties 1,400,000 - Operating Leases - Long-Term 130,200 171,439 Asset Retirement Obligation 4,146,151 4,151,847 Total Liabilities 26,003,550 24,100,032 Mezzanine Equity: Convertible Preferred Stock, Series B, $ 10 par value, 3.5 % annual dividend, 2,466,455 and 2,444,885 shares issued and outstanding as of June 30, 2024 and December 31, 2023 respectively. 24,664,543 24,448,850 Stockholders' Equity

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