Stock Earning Highlights: Houston American Energy Corp. (NYSE:HUSA)

Houston American Energy Corp. (NYSE:HUSA) changed -2.50% to recent value of $0.2219. The stock transacted 129,548 shares during most recent day however it has an average volume of 655,703 shares. It spotted trading -52.79% off 52-week high price. On the other end, the stock has been noted 26.80% away from the low price over the last 52-weeks. The company has 62.53M shares outstanding and market value of 13.874M.

Houston American Energy Corp. (NYSE American: HUSA) recently reported financial results for its fourth quarter and year ended December 31, 2018. Net income for the fourth quarter of 2018 was $64,665 contrast to a net loss of $282,663 for the fourth quarter of 2017.  For the twelve months ended December 31, 2018, net loss was $251,336 contrast to a net loss of $2,037,614 for the twelve months ended December 31, 2017.

The improvement in quarterly and full year operating results reflects substantial raises in oil and gas revenue, receipt of a lease bonus from the extension of a mineral acreage lease in Louisiana and the results of the company’s cost control measures.  Oil and gas revenues were up 256% for the year, to $2,243,325 for 2018 as contrast to $630,392 in 2017.  The raise in revenues was attributable to production from the Company’s Reeves County, TX wells which came on line late in 2017. The Company’s commitment to lower operating costs and stringent financial controls had a positive impact during the year with general and administrative costs decreasing 33% to $1,422,560 in 2018 from $2,128,667in 2017. 

Other financial metrics improved in 2018, highlighted by:

  • Cash flow from operating activities of $360,792 for the year ended December 31, 2018vs. cash used in operating activities of $1,716,847 for the year ended December 31, 2017
  • Proved reserve PV10 valuation of $7,714,648 at December 31, 2018 vs. $6,848,855 at December 31, 2017
  • Cash on hand of $755,702 at December 31, 2018 vs. $392,062 at December 31, 2017
  • A current ratio of 15:1 at December 31, 2018 vs. 5:1 at December 31, 2017
  • Total liabilities of $145,478 at December 31, 2018 vs. $236,560 at December 31, 2017; and
  • No long-term debt

James Schoonover, interim CEO stated, “2k18 was a pivotal transition year for Houston American Energy, highlighted by substantial production and revenue growth, diversification of our asset base and potential future revenue sources and a keen focus on controlling and lowering costs, culminating in a net profit in the fourth quarter.  Reeves County production, which came on line in late 2k17 drove production and revenue growth for the year.  With a salt water disposal well serving Reeves County predictable to come on line in the near future, we expect field level operating costs to go down and profitability to raise.  If we see improved profitability, we expect that our new operator will resume development of our Reeves County holdings. The stock price is moving down from its 20 days moving average with -2.72% and isolated negatively from 50 days moving average with -8.48%. The company net profit margin is -23.40% and gross profit margin is 56.80%, its monthly performance is -7.54% and a quarterly performance of 2.73%.

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