Persistent Negative Cash FlowSustained negative operating and free cash flow forces reliance on external financing or asset sales, raising execution risk for multi-well programs. Over months this constrains the company's ability to self-fund development, increases dilution risk, and limits capacity to scale production.
Large Net Losses And Negative Gross ProfitDeeply negative margins indicate structural cost or pricing issues at current production and processing levels. Persistent losses erode retained capital, hinder reinvestment, and make it harder to demonstrate sustainable unit economics needed to secure long-term commercial contracts and investment.
Volatile And Declining Revenue TrendLarge year-to-year revenue swings reduce forecast reliability for cash flow and project economics, complicating capital planning for drilling and processing capacity. Continued revenue volatility heightens funding needs and may delay the transition to consistent, self-sustaining operations.