Sky Quarry Inc.

What they do

Sky Quarry operates the Eagle Springs Refinery in Nevada, producing diesel, vacuum gas oil (VGO), naphtha, and liquid paving asphalt from crude oil sourced in the Uintah basin. The company also has a development-stage division, PR Springs, focused on using its proprietary ECOSolv solvent technology to recycle waste asphalt shingles and remediate oil-saturated sands. All current revenues are generated from the refining segment.

Revenue drivers

• Eagle Springs Refinery — Produces diesel, VGO, naphtha, and liquid paving asphalt; the sole revenue-generating segment.
• Crude oil throughput — Refinery operations depend on procurement and processing of crude oil from Uintah basin suppliers; outages have halted production.
• PR Springs (development stage) — Planned recycling of waste asphalt shingles and oil sands remediation using ECOSolv; not yet generating revenue.

Recent performance

For the year ended December 31, 2025, the company reported a net loss of $12.2 million and operating cash flow of -$3.3 million. The Eagle Springs Refinery experienced a shutdown during Q4 2025 and the first half of 2026 due to boiler repairs, negatively impacting results through Q2 2026. As of June 30, 2026, total assets were $28.3 million, total liabilities $16.6 million, and cash and equivalents $8.0 million. The company has incurred accumulated net losses of $42.5 million since inception.

Strategy

Management plans to complete retrofitting the PR Springs facility in 2027, contingent on obtaining necessary funding, to begin recycling asphalt shingles using ECOSolv. The company intends to roll out modular, scalable regional recycling facilities near asphalt shingle manufacturing centers. It is also evaluating a potential acquisition of digital infrastructure assets under a March 2026 exclusivity agreement, though no definitive terms have been agreed. The company replaced its ATM sales agent and expanded the program to up to $12.6 million, generating net proceeds of $12.5 million as of June 30, 2026.

Risks

• Going concern uncertainty — Recurring losses and accumulated net losses of $42.5 million raise substantial doubt about the company's ability to continue as a going concern.
• Refinery outages — Unscheduled repairs at Eagle Springs Refinery have caused extended shutdowns, negatively impacting financial results through Q2 2026.
• Customer and supplier concentration — The company depends on several significant customers and principal crude oil suppliers; loss of any could materially harm operations.
• Debt default risk — The company has outstanding debt that is past due and is not making full payments on certain loans and merchant cash advance agreements, which could trigger defaults.

Outlook

Management expects the Eagle Springs Refinery to be operational by the end of Q3 2026, with feedstock procured and subject to scale-up testing and state inspection. The PR Springs facility is targeted for completion in 2027, pending funding. The company continues to pursue the potential digital infrastructure acquisition but has not entered a definitive agreement.