Royale Energy Files Q3 2024 10-Q

Ticker: ROYL · Form: 10-Q · Filed: 2024-11-14T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, oil-gas, financial-report

TL;DR

Royale Energy filed its Q3 10-Q. All systems go.

AI Summary

Royale Energy, Inc. filed its 10-Q for the quarterly period ended September 30, 2024. The company, incorporated in Delaware, operates in the crude petroleum and natural gas sector. Its principal executive offices are located at 1530 Hilton Head Rd, El Cajon, CA.

Why It Matters

This filing provides investors with an update on Royale Energy's financial performance and operational status for the third quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial and operational updates, with no immediate red flags apparent in the provided header information.

Key Players & Entities

FAQ

What is Royale Energy, Inc.'s primary business activity?

Royale Energy, Inc. is primarily involved in the CRUDE PETROLEUM & NATURAL GAS industry, as indicated by its SIC code [1311].

When is the quarterly period this 10-Q report covers?

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

Where are Royale Energy, Inc.'s principal executive offices located?

Royale Energy, Inc.'s principal executive offices are located at 1530 Hilton Head Rd, Suite 205, El Cajon, CA 92019.

What is the SEC file number for Royale Energy, Inc.?

The SEC file number for Royale Energy, Inc. is 000-55912.

What is Royale Energy, Inc.'s state of incorporation?

Royale Energy, Inc. is incorporated in Delaware.

Filing Stats: 4,395 words · 18 min read · ~15 pages · Grade level 15.9 · Accepted 2024-11-14 15:28:55

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 September 30, 2024 December 31, 2023 ASSETS (unaudited) Current Assets Cash and Cash Equivalents $ 1,737,465 $ 2,202,521 Restricted Cash 4,032,800 3,325,000 Other Receivables, net 622,921 1,036,401 Revenue Receivables 513,418 878,378 Prepaid Expenses 557,396 558,169 Deferred Drilling Costs 1,507,747 1,669,149 Total Current Assets 8,971,747 9,669,618 Right of Use Assets - Leases 261,129 254,008 Other Assets 589,865 589,865 Oil and Gas Properties, (Successful Efforts Basis), Equipment and Fixtures, net 5,061,261 2,401,902 Total Assets $ 14,884,002 $ 12,915,393 See notes to unaudited condensed consolidated financial statements. 3 Table of Contents ROYALE ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) Current Liabilities: Accounts Payable and Accrued Expenses $ 6,240,895 $ 5,482,074 Royalties Payable 611,833 612,925 Due to RMX Resources, LLC 23,087 23,087 Accrued Liabilities 653,730 215,693 Asset Retirement Obligation - Current 1,012,500 675,000 Deferred Drilling Obligation 11,328,332 9,761,927 Operating Leases - Current 92,152 83,230 Total Current Liabilities 19,962,529 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 Notes Payable to Related Parties 1,400,000 - Operating Leases - Long-Term 169,292 171,439 Asset Retirement Obligation 4,081,065 4,151,847 Total Liabilities 28,535,696 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 September 30, 2024 and December 31, 2023, respectively. 24,664,543 24,448,850 St

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