Altex Industries, Inc.

What they do

Through its subsidiary AOC, Altex owns interests in onshore oil and gas properties, all operated by third parties. The company buys and sells producing properties, participates in drilling and recompletions to a lesser extent, and generates revenue from oil and gas sales. It also earns interest income on cash balances. Altex has one full-time employee and relies on operators for property information.

Revenue drivers

• Oil and gas production — Revenue from interests in producing properties, totaling $18,000 in FY2025 (down from $23,000 in FY2024) and $6,000 in the June 2026 quarter.
• Interest income — Interest on cash balances, $115,000 in FY2025 and $68,000 for the nine months ended June 30, 2026.
• Asset sales — Gains from selling oil, gas, and mineral interests, e.g., $525,000 in FY2024 (Utah) and $49,000 in May 2026 (Utah and Wyoming).

Recent performance

In FY2025, revenue was $18,000, down from $23,000 in FY2024, and net loss was $192,000 versus net income of $437,000 in FY2024 (which included a $525,000 gain on asset sale). Operating cash flow used $99,000 in FY2025 and $120,000 in the first nine months of FY2026. In the quarter ended June 30, 2026, revenue was $6,000. At June 30, 2026, the company had $2.5M cash, total assets of $2.7M, and total liabilities of $1.4M.

Strategy

Management states no capital expenditures are currently planned, but to achieve positive operating cash flow, it would need to invest in producing oil and gas properties or another cash-generating venture. The company also buys back its own stock: 41,880 shares in FY2025 and 118,501 shares in FY2024. There is no stated formal investment plan beyond opportunistic asset sales and potential acquisitions.

Risks

• Operator dependence and liability — All interests are in non-operated properties, so the company depends on third-party operators for accurate information and can be liable for 100% of property liabilities regardless of interest size.
• Negative cash flow and net losses — The company expects negative operating cash flow and net losses unless it invests substantially in producing properties or another venture; revenue is unlikely to exceed expenses at current levels.
• Accrued executive compensation — As of June 30, 2026, $1,235,000 in deferred salary and bonus is payable to the president, who can demand payment in cash at any time, posing a liquidity risk.
• Concentration of production sales — Sales of oil and gas depend on refiners, pipelines, and processing plants; if a purchaser is taken out of service, production could be halted.

Outlook

Management is not aware of any material trends or uncertainties except for potential changes in interest rates, oil and gas prices, unanticipated ARO or environmental costs, and possible cash payment of deferred presidential compensation. The company expects negative cash flow from operations unless it makes new investments, and it has no material capital expenditure commitments. It also does not expect climate change regulations to have a material impact.