Spindletop Oil & Gas Co.

What they do

The company acquires, explores and develops oil and natural gas reserves, with all of its oil and gas properties located within the United States. It applies the full cost method of accounting, capitalizing acquisition, exploration and development costs in a single country cost center. It annually prepares a Standardized Measure of Discounted Future Net Cash Flows for proved reserves, most recently as of December 31, 2025.

Revenue drivers

• Oil and natural gas production — Revenue comes from sales of oil, natural gas and NGLs from U.S. properties; total annual revenue was $4.4M in 2025, up from $4.3M in 2024 but below $8.4M in 2022.
• Commodity price realizations — The company states revenues, profitability and cash flow are highly dependent on realized prices for oil, natural gas and NGLs, which it says are volatile and beyond its control.
• Reserve base and production volumes — The company maintains proved reserves valued through annual Reserve Reports using a 12-month average price; it does not disclose discrete segment-level revenue beyond its single U.S. oil and gas cost center.

Recent performance

Annual revenue was $4.4M in 2025 versus $4.3M in 2024, but net income swung to a loss of $1.9M in 2025 from a $629,000 loss in 2024, with diluted EPS of -$0.28 versus -$0.09. Operating cash flow turned negative at -$135,000 in 2025, down from $224,000 in 2024, continuing a decline from $2.4M in 2021. More recent quarterly revenue has risen, from $958,000 in the quarter ended 2025-09-30 to $1.2M, $1.3M and $1.9M in the subsequent quarters through 2026-06-30. At 2026-06-30 the company reported total assets of $28.0M, total liabilities of $12.7M, shareholder equity of $15.3M and cash of $5.1M.

Strategy

The company's stated approach is to account for its U.S. oil and gas properties under the full cost method and to test the capitalized cost center ceiling annually against a Standardized Measure based on proved reserves and a 12-month average price. It prepared its annual Reserve Report as of December 31, 2025. The filings describe continued exposure to commodity price volatility rather than a quantified growth plan, and management notes that global economic and other factors during 2026 have changed previously disclosed risk factors.

Risks

• Commodity price volatility — The company states declines in oil and natural gas prices significantly affect its financial condition and results of operations, and that revenues, profitability and cash flow are highly dependent on realized oil, natural gas and NGL prices.
• Full cost ceiling write-downs — Under the full cost method, if unamortized capitalized costs in its single U.S. cost center exceed the computed cost center ceiling, the excess is charged to expense and cannot be reinstated for later ceiling increases.
• Negative operating cash flow — Operating cash flow was -$135,000 in 2025, reversing from $224,000 in 2024 and extending a multi-year decline from $2.4M in 2021.
• Global and regulatory factors — The company lists epidemics and pandemics, tariffs, sanctions, armed conflict in the Middle East, Ukraine and Iran, political instability in Venezuela, OPEC actions and environmental and climate-related regulation among factors beyond its control.

Outlook

Management does not provide quantified guidance in the excerpts; it states that forward-looking statements are not guarantees and that it disclaims any obligation to update them. The company notes that risks previously described in its 10-K have changed due to significant global economic and other factors occurring during 2026. It directs investors to review its risk factors and subsequent 10-Q and 8-K filings.