Negative Operating And Free Cash FlowPersistent negative operating and free cash flow indicate the business consumes cash rather than funds itself, eroding liquidity and forcing reliance on external capital. Over 2–6 months this raises financing risk, potential dilution, and constraints on drilling or infrastructure spend.
Sharp Revenue DeclineAn abrupt and large revenue contraction undermines scale economics and suggests production or commercialization setbacks. Without a sustained recovery in top-line volumes or new offtake, margin leverage and ability to fund operations internally remain limited, pressuring long-term viability.
Large Losses Eroding Equity (negative ROE)A deeply negative ROE signals capital is not generating returns and is eroding shareholder equity. Over the medium term this can force asset sales, restructuring, or dilutive financings to restore balance-sheet health, reducing optionality from current asset positions.