Houston American Energy (HUSA) - 2022 Q4 - Annual Report

Revenue and Production - Total oil and gas revenues increased 23% to $1,638,841 in 2022 from $1,330,198 in 2021[179]. - Crude oil prices increased by 46% and natural gas prices increased by 24% in 2022 compared to 2021[180]. - Natural gas production volumes increased by 23% in 2022, while crude oil production declined by 26%[180]. - The average sales price for oil was $93.10 per barrel in 2022, compared to $63.60 in 2021[181]. - The average sales price for gas was $5.13 per Mcf in 2022, compared to $4.13 in 2021[181]. - Total oil sales revenue for 2022 was $995,083,000, an increase from $913,809,000 in 2021, while gas sales revenue decreased to $377,534,000 from $416,389,000[183]. Expenses and Liabilities - Lease operating expenses decreased by 12.3% to $531,675,000 in 2022 from $606,210,000 in 2021[183]. - Depreciation and depletion expense decreased by 16% to $205,458,000 in 2022 from $245,606,000 in 2021, attributed to a decrease in oil production[185]. - General and administrative expenses increased by 18% to $1,374,060,000 in 2022 from $1,168,969,000 in 2021, primarily due to a CEO bonus and salary increase[186]. - Long-term liabilities decreased to $219,148,000 at December 31, 2022, from $279,953,000 at the end of 2021[191]. Cash Flow and Investments - Cash balance at December 31, 2022, was $4,547,210, compared to $4,894,577 at the end of 2021, with working capital decreasing to $4,601,168 from $5,052,685[188]. - Investing activities used cash of $1,661,405,000 in 2022, significantly higher than $238,180,000 in 2021, mainly due to acquisitions in Hupecol Meta[189]. - Financing activities provided cash of $1,543,000 in 2022, down from $4,570,888 in 2021, with $2 million still available under the 2022 ATM offering[190]. - As of December 31, 2022, $2 million remained available to raise from the 2022 ATM offering[164]. Acquisitions and Interests - The company acquired additional interests in Hupecol Meta for a total consideration of $657,638 in 2022, increasing ownership to approximately 18%[159]. - The company holds an approximately 16% interest in the Venus Exploration Area through Hupecol Meta[160]. - Capital expenditures for Hupecol Meta increased sharply in 2022, with plans for additional drilling operations and seismic data acquisition in 2023[193]. Property Values and Other Income - The carrying value of unevaluated oil and gas properties was $2,343,126 as of December 31, 2022[176]. - Other income increased to $33,641,000 in 2022 from $12,668,000 in 2021, driven by higher interest rates on cash balances[187].