Houston American Energy (HUSA) - 2024 Q3 - Quarterly Report

Revenue Performance - Total oil and gas revenues increased 15% to $130,239 for the three months ended September 30, 2024, compared to $112,994 for the same period in 2023[56]. - Oil and gas revenues declined 28% to $393,729 for the nine months ended September 30, 2024, compared to $547,408 for the same period in 2023[56]. - Distributions from Hupecol Meta totaled $268,817 and $922,959 for the three and nine months ended September 30, 2024, respectively[54]. Expenses - Lease operating expenses increased 78% to $229,210 during the three months ended September 30, 2024, from $128,918 during the same period in 2023[59]. - General and administrative expenses decreased by 10% to $280,260 during the three months ended September 30, 2024, from $312,344 during the same period in 2023[62]. Capital Expenditures and Cash Flow - Capital investment expenditures totaled $1,072,364 during the quarter ended September 30, 2024, attributable to investments in Hupecol Meta[53]. - Cash balance at September 30, 2024, was $2,847,296, down from $4,059,182 at December 31, 2023[65]. - Operating activities used $139,522 of cash during the nine months ended September 30, 2024, compared to cash outflows of $211,463 during the same period in 2023[66]. Joint Ventures and Future Plans - The company holds an approximately 0.00370542% working interest in the joint venture with EOG Resources for six wells in Texas[48]. - The first well in the joint venture was scheduled to spud on June 23, 2024, with all six wells anticipated to be in production by the second quarter of 2025[48]. Financial Position and Funding Needs - The company may need to secure additional funding for acreage acquisitions or expanded drilling plans, with limited authorized shares available for equity capital raises[73]. - There were no off-balance sheet arrangements or guarantees of third-party obligations as of September 30, 2024[74]. Market Conditions - The company's revenue and profitability are heavily influenced by the volatile prices of crude oil and natural gas, which are subject to fluctuations due to supply and demand[75]. - The company has not historically engaged in hedging or other transactions to manage exposure to oil and gas price volatility[76].