Rising Total LiabilitiesAn uptick in liabilities, even from a low leverage base, can pressure liquidity, limit flexibility for new investments, and increase covenant or refinancing risk if commodity cash flows weaken. Monitoring liability growth is essential over the next several quarters.
Commodity Price ExposureRevenue and cash generation are structurally tied to oil and gas prices. Prolonged commodity price weakness would materially reduce cash flows, capex capacity and returns on newly acquired assets, making operational planning and debt servicing more challenging.
Limited Internal Scale / Small TeamA very small employee base implies heavy reliance on partners, contractors and management for execution and integration of acquisitions. This raises operational and execution risk for complex upstream projects and limits in‑house capacity for rapid scale‑up.