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2nd Quarter 2026 Financial & Operating Results
Big Sky Industrial’s (NASDAQ: BSIN) quarterly financial results were mostly related to legacy oil & gas operations, with about 86% coming from the Montana region and the remainder from the Mid-Continent region (mostly Texas).
2nd quarter 2026 production was 33,747 barrels of oil equivalent (“BOE”) (78% oil), compared to 48,816 BOE in the 2nd quarter of 2025. For the 2nd quarter of 2026, revenue totaled $2.1 million (95% oil), compared to revenue of $2.0 million in the prior year period. Realized average sales prices were $77.73/bbl and $2.20/mcf for oil and natural gas, respectively, resulting in an average realized price of $63.24/BOE, compared to $55.14/bbl, $2.00/mcf for oil and natural gas, respectively, resulting in an average realized price of $41.54/BOE in the prior year period.
While production declined year over year, total revenue was essentially flat, as stronger realized oil prices offset lower volumes. The sequential decline in production and revenue was largely due to the company’s strategic divestitures, which were the final step in its legacy asset optimization program and the funding source for its now-substantially-complete pivot to its industrial gas, energy, and carbon management platform.
2nd quarter 2026 lease operating expense totaled $1.0 million, compared to $1.5 million for the second quarter 2025. Cash G&A expense totaled $1.8 million for the 2nd quarter 2026, compared to $1.7 million for the 2nd quarter of 2025 and $2.6 million for the 1st quarter of 2026. The sequential decline reflects lower professional fees and compensation expense associated with the company’s strategic transformation, including legal, technical, and advisory work supporting FID, the EPC contract negotiation, the helium offtake agreement, and the amended credit facility. These costs are expected to normalize as Phase 1 transitions from development to construction execution.
Big Sky Industrial reported a net loss of ($2.3) million, or $(0.04) per diluted share for the 2nd quarter 2026, compared to a net loss of ($6.1) million, or $(0.19) per share in the prior year period (which included a $2.8 million impairment of oil & gas properties). Adjusted EBITDA was $(0.9) million, compared to $(1.3) million in the 2nd quarter of 2025.
Balance Sheet & Liquidity
During the six-month period ended June 30, 2026, the company spent approximately $9.6 million on the acquisition and development of industrial gas properties and expects to continue allocating capital to the Big Sky project for the remainder of the year.
At the end of the 2nd quarter, the company had approximately $6.0 million in cash and total debt outstanding of $4.5 million. Availability on its credit facility was $15.5 million, resulting in period-end total liquidity of approximately $21.5 million.
Subsequent to the end of the quarter, the company drew down an additional $4.0 million to fund ongoing capital expenditures on the Big Sky project.
As of August 4, 2026, the company held $4.9 million in cash and has $16.4 million in total liquidity, including $11.5 million of undrawn capacity under the amended senior secured credit facility. With the Phase 1 capital stack in place and the ELOC formally suspended, the company has stated that it believes it has sufficient liquidity to advance Phase 1 toward targeted commercial operations in the 1st quarter of 2027 without anticipated reliance on the public equity markets, while maintaining flexibility to pursue other value-enhancing opportunities. Achievement of targeted commercial operations is subject to construction, commissioning, regulatory, and other risks discussed in this report.
Valuation & Estimates
We maintain our DCF derived price target of $3.50 per share, which reflects our expectation that initial helium, carbon-management, and CO₂-EOR revenue could begin in March of 2027, which is supported by the achievement of Phase 1 FID in March 2026.
Our Zacks SCR DCF model assumes initial monetization of the three revenue streams beginning in 2027. For 2027, our estimates include oil revenue of $11.0 million, helium revenue of $2.0 million, and Section 45Q tax credit revenue of $7.5 million, which we estimate could generate adjusted EBITDA of approximately $12.0 million. For 2028, our estimates assume total revenue of approximately $29.0 million and adjusted EBITDA of approximately $17.0 million.
Under this scenario, our DCF valuation is approximately $3.50 per share. The Zacks SCR DCF uses a discount rate of 12.5%, which we view as conservative given the development-stage profile of the project.
Based on Zacks SCR estimates, we believe BSIN is estimated to be trading at approximately 5.0x our 2027 adjusted annualized EBITDA estimate. Small-cap industrial gas peers have historically traded in a 7x–8x forward EBITDA range, and large-cap industrial gas companies at mid-teens forward EBITDA multiples. Big Sky Industrial is in a pre-revenue, construction phase, and any multiple expansion would be dependent on successful execution against the 2027 commercial-operations milestone. We highlight the valuation gap as an observation, not a prediction.
We also note the current market capitalization is substantially below the approximately $130 million of Section 45Q tax credit value the company has estimated could be generated over the first 12 years of Phase 1 operations. Management has also indicated there is a possibility that the carbon tax credits could be monetized in advance through sales or other arrangement.
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