Big Sky Industrial Inc. Reports Third Quarter 2026 Results and Highlights Phase 1 Construction Progress at Big Sky Carbon Hub

Higher realized prices lifted quarterly revenue despite lower production, while remediation costs increased operating expenses.

Rhea-AI Summary

Big Sky Industrial (NASDAQ: BSIN) reported third-quarter 2026 revenue of $1.955 million while advancing construction at its Big Sky Carbon Hub. Revenue rose from $1.738 million a year earlier, but net loss widened to $3.5 million from $3.3 million. Production fell to 30,628 barrels of oil equivalent from 35,326.

Phase 1 plant fabrication has begun, gathering and injection lines are complete, and the company targets first production and helium sales in spring 2027. A five-year, 100% take-or-pay helium agreement provides $285 per thousand cubic feet at the plant gate. Equipment installation is planned from late fourth-quarter 2026 into first-quarter 2027. At September 30, cash was $2.915 million and total liquidity was $14.415 million, including undrawn credit. The Big Rose carbon-storage monitoring plan awaits final EPA action; approval is not required to start Phase 1 or sell helium.

18 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased to $1.955 million from $1.738 million a year earlier.
• Moderate pointFive-year, 100% take-or-pay helium agreement provides $285/Mcf at the plant gate, without delivery deductions.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Phase 1 installation is planned from late fourth-quarter 2026 into first-quarter 2027; first production targeted spring 2027.
• Moderate pointTotal liquidity increased to $14.415 million at September 30, 2026, from $7.929 million at December 31, 2025.
• Moderate pointAverage realized price increased to $63.83 per barrel of oil equivalent from $49.20 a year earlier.
• Moderate pointAdjusted EBITDA loss narrowed to $0.8 million from $1.3 million, excluding $1.2 million of environmental remediation costs.

12 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Helium contract pricing includes CPI-linked escalation beginning March 1, 2028, and year-three pricing redetermination.
• Minor pointPhase 1 fabrication has begun under the fixed-scope engineering, procurement and construction agreement with CANUSA EPC.
• Minor pointGathering and injection lines are complete; three production wells are ready for tie-in and two injection wells operational.
• Minor pointLong-lead equipment has been procured, including natural gas-fired generators.
• Minor pointPhase 1 design capacity is approximately 14 million cubic feet of helium annually.
• Minor pointPhase 1 carbon capacity is approximately 125,000 metric tons annually for capture and permanent sequestration or utilization.
• Minor pointPhase 2 engineering and planning are underway for a second processing plant using existing infrastructure.
• Minor pointEast Texas divestiture generated approximately $0.4 million net proceeds after quarter-end, transferring approximately $0.9 million of retirement obligations.
• Minor pointRealized prices rose to $77.30/barrel of oil and $3.35/Mcf of gas, from $60.12 and $2.82.
• Minor pointQuarterly cash administrative expense fell to $1.6 million from $1.7 million year over year and $1.8 million sequentially.
• Minor pointNine-month lease operating expenses decreased to $4.016 million from $4.189 million a year earlier.
• Minor pointDepreciation, depletion, accretion and amortization declined year over year to $531,000 quarterly and $1.681 million for nine months.

Negative

• Major pointOutstanding shares increased to 52,499,955 at September 30, 2026, from 34,405,143 at December 31, 2025, diluting holders.
• Moderate pointQuarterly net loss widened to $3.5 million from $3.3 million; loss per share narrowed to $0.07 from $0.10.
• Moderate pointQuarterly production declined to 30,628 barrels of oil equivalent from 35,326 a year earlier.
• Moderate pointQuarterly lease operating expenses rose to $2.110 million from $1.045 million, including approximately $1.2 million of remediation costs. 1.7% of market cap
• Moderate pointDebt outstanding increased to $8.5 million at September 30, 2026, from $2.5 million at December 31, 2025.
• Moderate pointCurrent liabilities of $11.869 million exceeded current assets of $4.561 million at September 30, 2026.
• Moderate pointLarger senior secured credit facility and Section 45Q tax-credit monetization remain under discussion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Phase 2 final investment decision is expected in coming months, following financing completion and final plant sizing.
• Moderate pointNine-month revenue decreased to $5.694 million from $5.959 million a year earlier.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Insurance recovery of up to $1.0 million is expected but pending approval; no receivable was recognized.
• Minor pointQuarterly equity compensation expense increased to $0.6 million from $0.4 million a year earlier.
• Minor pointBig Rose and Cut Bank monitoring plans remain pending EPA approval; final Big Rose timing rests with the agency.
• Minor pointProduction taxes increased to $158,000 quarterly and $453,000 for nine months, from $136,000 and $432,000.

News Explained

The post-quarter sale brought about $0.4 million in net proceeds while shifting about $0.9 million of asset-retirement obligations to the buyer.

The September 30, 2026 balance sheet reports 52,499,955 common shares outstanding, versus 34,405,143 at December 31, 2025; for holders whose share counts did not change, that higher total means a lower proportional ownership stake.

After quarter-end, Big Sky sold 15 non-core East Texas wells for approximately $0.4 million in net proceeds, and the buyer assumed approximately $0.9 million of asset-retirement obligations.

Key Figures

Revenue: $2.0 million Production: 30,628 BOE Net loss: $3.5 million +5 more

Revenue

$2.0 million

Q3 2026; compared with $1.7 million in Q3 2025

Production

30,628 BOE

Q3 2026; compared with 35,326 BOE in Q3 2025

Net loss

$3.5 million

Q3 2026; compared with $3.3 million in Q3 2025

Adjusted EBITDA

$(0.8) million

Q3 2026; compared with $(1.3) million in Q3 2025

Total liquidity

$14.4 million

As of September 30, 2026

Helium offtake price

$285 per Mcf

Fixed all-in plant-gate price under a five-year, 100% take-or-pay contract

Designed helium production

Approximately 14 MMcf per year

Phase 1 initial operations

Designed CO₂ capture

Approximately 125,000 metric tons annually

Phase 1 initial operations

Previous Earnings Reports

1 past event · Latest: Aug 11

Same Type 1 event

1. Aug 11

   Q2 earnings

   24h Move

   +18.2%

   Q2 results accompanied Phase 1 construction progress and established five-year helium offtake terms.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

take-or-pay, epc, section 45q tax credits

3 terms

take-or-pay financial

"structured as 100% take-or-pay over a five-year initial term"

A take-or-pay clause is a contract term that requires a buyer to either take delivery of an agreed amount of a product or pay a penalty if they do not. For investors, it matters because it creates predictable revenue for the seller—like a subscription fee that must be paid whether fully used or not—reducing sales volatility but also introducing counterparty risk if the buyer’s ability to pay is uncertain.

epc technical

"fixed-scope engineering, procurement, and construction (“EPC”) agreement"

An EPC (engineering, procurement and construction) contract is a single agreement where a contractor designs a project, buys the materials and builds it, then hands over a finished, ready-to-use facility—much like hiring a general contractor to deliver a completed house. For investors, EPCs matter because they concentrate responsibility for cost, schedule and delivery with the contractor, affecting a company’s revenue visibility, cash needs and exposure to construction or performance risks.

section 45q tax credits financial

"discussions on monetizing its Phase 1 Section 45Q tax credits are progressing"

A U.S. federal tax credit that pays a set dollar amount for each ton of qualified carbon oxide that a taxpayer captures and then permanently stores, injects for long‑term sequestration, or puts to specified beneficial uses. The credit applies only to capture systems and capture events that meet statutory and regulatory rules for measurement, chain of custody, and verified disposal or use; taxpayers claim it by demonstrating the amount of carbon captured and the required contractual and reporting safeguards. The credit is limited to qualifying facilities and activities under the statute, is available only to U.S. taxpayers (or parties authorized under the statute to receive the credit), and is claimed according to the timing and recordkeeping protocols set by the tax and environmental authorities.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Big Sky Industrial Inc. (NASDAQ: BSIN) (“Big Sky Industrial” or the “Company”), an integrated industrial gas, energy, and carbon management company, today reported financial and operating results for the three and nine months ended September 30, 2026, while highlighting construction and development progress during the quarter at the Company’s Big Sky Carbon Hub, its flagship project in Montana.

MANAGEMENT COMMENTS

“The third quarter was about execution, and we are pleased with where the project stands,” said Ryan Smith, President and Chief Executive Officer of Big Sky Industrial. “Our in-field gathering and injection lines are complete, and our long-lead equipment has been procured, including the natural gas-fired generators that will power the plant. Plant fabrication is underway, on-site civil work begins in the coming weeks, and construction remains on schedule. We are targeting first production in spring 2027, a window that leaves sensible room for commissioning and the Montana winter. From day one, our helium is sold under a five-year, 100% take-or-pay contract. In October, the Department of Energy designated helium a critical material, which underscores the value of the domestic supply we are building in Montana.

“Our Big Rose MRV plan is in the final stage of the EPA’s approval process. We submitted the plan in October 2025 and, because of the federal government shutdown, it was accepted by the agency in November 2025. Historically, EPA approvals of comparable plans have generally taken 12 months or longer, so our timing is in line with precedent, even if we had hoped for a quicker outcome. Our materials are complete, nothing in the agency’s feedback has changed our expectation of approval, and while the timing of a final decision rests with the EPA, we remain confident in the outcome. On the financing side, we are in discussions on a new, larger credit facility that would expand our borrowing capacity and financial flexibility, and our 45Q monetization discussions are progressing. The path to first production is clear, and we are executing against our plan.”

THIRD QUARTER 2026 STRATEGIC AND OPERATIONAL HIGHLIGHTS

• Phase 1 Processing Facility Fabrication Underway. Fabrication of the modular Phase 1 processing facility for the Big Sky Carbon Hub has begun under the Company’s fixed-scope engineering, procurement, and construction (“EPC”) agreement with CANUSA EPC. Equipment installation at the site is planned from late in the fourth quarter of 2026 into the first quarter of 2027, and the schedule allows for winter weather in Montana. The plant is designed to produce approximately 14 MMcf of high-purity helium per year and to capture and permanently sequester or utilize approximately 125,000 metric tons of CO₂ annually at initial operations.
  
  

• Five-Year, 100% Take-or-Pay Helium Offtake in Place. In April 2026, the Company executed a five-year helium sales agreement with an investment-grade global industrial gas company for the sale of contained helium produced at Big Sky. The contract is structured as 100% take-or-pay over a five-year initial term at a fixed, all-in price of $285 per Mcf realized at the plant gate, with CPI-linked escalation beginning March 1, 2028, and a year-three pricing redetermination. The buyer is responsible for all transportation, logistics, and downstream delivery, so the Company realizes the full $285 per Mcf at the plant gate with no midstream or delivery deductions. The agreement provides contracted revenue from first production.
  
  

• Expanded Credit Facility and 45Q Financing Advancing. The Company is advancing two complementary financing processes. It is in discussions on a new, larger senior secured credit facility that would expand its borrowing capacity and financial flexibility. In parallel, discussions on monetizing its Phase 1 Section 45Q tax credits are progressing.
  
  

• Big Rose MRV Plan in Final Stage of EPA Approval Process. The Company has submitted two Monitoring, Reporting, and Verification (“MRV”) plans to the EPA. The Big Rose plan and its associated injection well are where the Company plans to sequester the CO₂ captured in Phase 1 as well as future phases. The plan was submitted on October 9, 2025 and, following the federal government shutdown, was accepted by the EPA on November 12, 2025. The plan is now in the final stage of the EPA’s approval process. Historically, EPA approvals of comparable plans have generally taken 12 months or longer. The Company has addressed the EPA’s comments and is awaiting final agency action. The Cut Bank plan, which was submitted on December 17, 2025, supports the Company’s CO₂-enhanced oil recovery development at its Cut Bank field over the longer term as the Company moves through future phases. That plan also continues to move through the EPA process. MRV approval is not a condition to starting the Phase 1 plant or selling helium.
  
  

• In-Field Gathering and Injection Lines Complete. Installation of the in-field lines connecting the Company’s production wells to the processing facility and carrying CO₂ to the Big Rose injection well has been completed. The Company’s three production wells are drilled, completed, and ready for tie-in to the installed gathering lines, and two Class II permitted injection wells are operational.
  
  

• Phase 2 Planning Underway. Engineering and planning are underway for Phase 2, a second processing plant on the same footprint that would use the Company’s existing infrastructure, permits, and field operations. A final investment decision on Phase 2 is expected in the coming months. The Company expects to provide additional detail as planning progresses.
  
  

• Helium Added to U.S. Critical Materials List. On October 23, 2026, the U.S. Department of Energy designated helium a critical material under the Energy Act of 2020, citing helium’s essential role in semiconductor manufacturing and other advanced technologies, as well as growing supply chain risk. The Company believes the designation underscores the strategic value of secure, domestic helium supply such as the Big Sky Carbon Hub.
  
  

NEXT MILESTONES

• Big Rose MRV Approval. In the final stage of the EPA approval process. Timing of a final determination rests with the EPA.
  
  
• Phase 1 Plant Installation. On-site civil work beginning in the coming weeks, with equipment installation from late in the fourth quarter of 2026 into the first quarter of 2027.
  
  
• Expanded Credit Facility. Discussions ongoing on a new, larger senior secured credit facility.
  
  
• Section 45Q Credit Monetization. Discussions ongoing and progressing.
  

• First Production and First Helium Sales. Spring 2027.
  
  
• Phase 2 Final Investment Decision. To follow completion of financing and final plant sizing.
  
  

BALANCE SHEET AND LIQUIDITY UPDATE

As of September 30, 2026, Big Sky Industrial had a cash balance of $2.9 million and total available liquidity of $14.4 million, including $11.5 million of undrawn capacity under the Company’s amended senior secured credit facility. Subsequent to quarter end, the Company sold 15 non-core wells in East Texas for net proceeds of approximately $0.4 million, with the buyer assuming approximately $0.9 million of asset retirement obligations.

		Balance as of
		September 30, 2026				December 31, 2025
Cash and debt balance:
Total debt outstanding		$	8,500			$	2,500
Less: Cash balance		$	2,915			$	429
Net debt balance		$	5,585			$	2,071
Liquidity:
Cash balance		$	2,915			$	429
Plus Credit facility availability		$	11,500			$	7,500
Total Liquidity		$	14,415			$	7,929

THIRD QUARTER 2026 FINANCIAL RESULTS

Third quarter 2026 production was 30,628 barrels of oil equivalent (“BOE”) (76% oil), compared to 35,326 BOE in the third quarter of 2025. For the third quarter 2026 revenue totaled $2.0 million (93% oil), compared to third quarter of 2025 revenue of $1.7 million. Third quarter 2026 realized average sales prices of $77.30/bbl and $3.35/mcf for oil and natural gas, respectively, resulting in an average realized price of $63.83/BOE as compared to third quarter 2025 which averaged $60.12/bbl, $2.82/mcf for oil and natural gas, respectively, resulting in an average realized price of $49.20/BOE. Revenue increased 12% year over year, as a 30% increase in the average realized price per BOE more than offset lower volumes. The decline in production primarily reflects the Company’s 2025 divestitures of its Wyoming and West Texas properties and natural production declines in its remaining assets. As previously communicated, the legacy asset monetization program funded the Company’s pivot to its industrial gas, energy, and carbon management platform.

Third quarter 2026 lease operating expense totaled $2.1 million, compared to $1.0 million for the third quarter 2025. The increase reflects approximately $1.2 million of remediation and related costs associated with the previously disclosed release of produced fluids from a gathering line in the Company’s legacy oil operations, which was identified and remediated during the quarter. The Company has submitted a claim under its general liability insurance policy, which provides $1.0 million of coverage for pollution clean-up costs after a $0.1 million per-occurrence deductible, and the Company expects to recover up to $1.0 million of these costs. Due to the claim pending approval, no insurance receivable was recognized as of September 30, 2026. Excluding these costs, lease operating expense was $0.9 million, or $29.71 per BOE, compared to $29.58 per BOE in the third quarter of 2025.

Cash general and administrative expense totaled $1.6 million for the third quarter 2026 compared to $1.7 million for the third quarter 2025. The decrease primarily reflects lower accounting and tax professional fees. On a sequential basis, cash general and administrative expense declined from $1.8 million in the second quarter of 2026. Equity compensation expense totaled $0.6 million for the third quarter of 2026, compared to $0.4 million for the third quarter of 2025.

Big Sky Industrial reported a net loss of $3.5 million, or ($0.07) per share during the third quarter 2026, compared to a net loss of $3.3 million, or ($0.10) per share in the third quarter of 2025, which included a $0.9 million impairment of oil and natural gas properties. Adjusted EBITDA, which excludes $1.2 million of environmental remediation costs, was $(0.8) million, compared to $(1.3) million in the third quarter of 2025.

CONFERENCE CALL DETAILS

Big Sky Industrial will host a conference call to discuss its third quarter 2026 financial and operating results on Wednesday, November 11, 2026 at 9:00 a.m. Eastern Time/8:00 a.m. Central Time, followed by a question-and-answer period. Interested parties may submit questions prior to the call by emailing the Company's investor relations email at IR@bigskyindustrialinc.com. A webcast of the call will be available on the Investor Relations section of the Company’s website at www.bigskyindustrialinc.com, and a replay of the teleconference will be available through November 25, 2026.

Date: Wednesday, November 11, 2026
Time: 9:00 a.m. Eastern Time
Toll-free dial-in number: 877-407-3982
International dial-in number: 201-493-6780

Conference Registration: Link
Webcast Registration: Link

Domestic Replay: 844-512-2921
International Replay: 412-317-6671
Access ID: 13763553

ABOUT BIG SKY INDUSTRIAL INC.

Big Sky Industrial Inc. (NASDAQ: BSIN) is a Houston-based industrial gas, carbon management, and energy company with operations focused on the Big Sky Carbon Hub and Cut Bank oil field in Montana’s Kevin Dome region. The Company’s asset base supports three distinct business lines: helium production, carbon management, and low-decline oil production. Big Sky Industrial is focused on developing an integrated platform that leverages helium, which the U.S. Department of Energy has designated a critical material, carbon management opportunities supported by Section 45Q federal tax credits, and conventional oil production from its owned and operated assets. The Company’s operations are designed to generate revenue from multiple independent sources across helium, carbon management, and oil. For more information, please visit www.bigskyindustrialinc.com.

INVESTOR RELATIONS CONTACT

Mason McGuire

IR@bigskyindustrialinc.com
(303) 993-3200
www.bigskyindustrialinc.com

MEDIA CONTACT

media@bigskyindustrialinc.com

X: @BSIN_IR
LinkedIn: Big Sky Industrial Inc.

FORWARD-LOOKING STATEMENTS

Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.

Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, risks relating to: the Company’s ability to complete construction of the Big Sky Carbon Hub on time and on budget; the Company’s ability to comply with the terms of its senior credit facilities; the Company’s access to capital on acceptable terms and potential dilution caused thereby; the Company’s ability to enter into a new credit facility and complete the monetization of its Section 45Q credits on acceptable terms or at all; the timing and outcome of the EPA’s review of the Company’s Monitoring, Reporting, and Verification plans; the amount and timing of any insurance recovery; the volatility of commodity prices, including helium, oil and natural gas; the Company’s success in discovering, estimating, developing and replacing reserves; risks related to the status and availability of gathering, transportation, processing, and storage facilities; risks relating to regulatory changes, including those related to the Section 45Q tax credit, carbon dioxide and greenhouse gas emissions; the business, economic and political conditions in the markets in which the Company operates; actions of competitors or regulators; inflationary risks and changes in interest rates; the potential disruption or interruption of the Company’s operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the Company’s control; and other risk factors included from time to time in documents the Company files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, and future annual reports and quarterly reports. These reports and filings are available at www.sec.gov. Unknown or unpredictable factors also could have material adverse effects on the Company’s future results.

FINANCIAL STATEMENTS

BIG SKY INDUSTRIAL INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

		September 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and equivalents		$	2,915			$	429
Oil and natural gas sales receivables			704				454
Marketable equity securities			89				146
Other current assets			853				956
Total current assets			4,561				1,985
Oil and natural gas properties under full cost method and industrial gas properties:
Evaluated oil and natural gas properties			132,837				132,459
Less accumulated depreciation, depletion and amortization			(118,239	)			(117,237	)
Net oil and natural gas properties			14,598				15,222
Unproved industrial gas properties, not subject to amortization			42,502				22,479
Other Assets:
Property and equipment, net			274				318
Right-of-use asset			220				356
Other assets			328				270
Total other assets			822				944
Total assets		$	62,483			$	40,630
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	7,054			$	1,592
Revenue and royalties payable			3,977				3,921
Commodity derivative liability			140				-
Asset retirement obligations			477				300
Lease obligation			221				210
Total current liabilities			11,869				6,023
Noncurrent liabilities:
Credit facility			8,500				2,500
Asset retirement obligations			7,939				7,706
Lease obligation, net of current			38				206
Total noncurrent liabilities			16,477				10,412
Total liabilities			28,346				16,435
Commitments and contingencies (Note 8)
Shareholders’ equity:
Common stock, $0.01 par value; 245,000,000 shares authorized; 52,499,955 and 34,405,143 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			525				345
Additional paid-in capital			254,484				235,762
Accumulated deficit			(220,872	)			(211,912	)
Total shareholders’ equity			34,137				24,195
Total liabilities and shareholders’ equity		$	62,483			$	40,630

BIG SKY INDUSTRIAL INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
(In thousands, except share and per share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue:
Oil		$	1,810			$	1,587			$	5,221			$	5,201
Natural gas and liquids			145				151				473				758
Total revenue			1,955				1,738				5,694				5,959
Operating expenses:
Lease operating expenses			2,110				1,045				4,016				4,189
Production taxes			158				136				453				432
Depreciation, depletion, accretion and amortization			531				816				1,681				3,053
Impairment of oil and natural gas properties			-				869				-				3,628
Exploration expense			88				128				310				174
General and administrative expenses			2,201				2,113				7,895				6,754
Loss on sale of assets			-				10				-				434
Total operating expenses			5,088				5,117				14,355				18,664
Operating loss			(3,133	)			(3,379	)			(8,661	)			(12,705	)
Other income (expense):
Commodity derivative (loss), net			(336	)			-				(169	)			-
Interest expense, net			-				(72	)			(74	)			(167	)
Other income, net			(27	)			110				(56	)			362
Total other (expense)			(363	)			38				(299	)			195
Net loss before income taxes		$	(3,496	)		$	(3,341	)		$	(8,960	)		$	(12,510	)
Income tax expense			-				-				-				-
Net loss		$	(3,496	)		$	(3,341	)		$	(8,960	)		$	(12,510	)
Basic and diluted weighted average shares outstanding			52,495,280				32,793,272				48,556,122				33,630,832
Basic and diluted loss per share		$	(0.07	)		$	(0.10	)		$	(0.18	)		$	(0.37	)

BIG SKY INDUSTRIAL INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
(in thousands)

		2026				2025
Cash flows from operating activities:
Net loss		$	(8,960	)		$	(12,510	)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation, depletion, accretion, and amortization			1,681				3,053
Impairment of oil and natural gas properties			-				3,628
Loss on sale of assets			-				434
Commodity derivatives loss			140				-
Loss (gain) on marketable equity securities			57				(180	)
Amortization of debt issuance costs			28				100
Stock-based compensation			1,708				1,454
Right-of-use asset amortization			135				129
Shares issued to consultants			176				-
Changes in operating assets and liabilities:
Oil and natural gas sales receivables			(250	)			807
Accounts payable and accrued liabilities			516				(2,583	)
Other operating assets and liabilities, net			161				(467	)
Payments on operating lease liability			(156	)			(146	)
Net cash used in operating activities			(4,764	)			(6,281	)
Cash flows from investing activities:
Acquisition of industrial gas properties			-				(2,128	)
Industrial gas properties capital expenditures			(15,170	)			(7,653	)
Oil and natural gas properties capital expenditures			(485	)			(18	)
Property and equipment expenditures			-				(4	)
Net proceeds from sale of oil and natural gas properties			-				134
Net cash used in investing activities			(15,655	)			(9,668	)
Cash flows from financing activities:
Borrowings on credit facility			6,000				-
Financing costs			(113	)			-
Shares withheld to settle tax withholding obligations for restricted stock awards			(171	)			(346	)
Repurchases of common stock			-				(316	)
Related party share repurchase			-				(1,574	)
Proceeds from underwritten offering			8,086				11,877
Proceeds from committed equity facility			9,103				-
Net cash provided by financing activities			22,905				9,641
Net change in cash and equivalents			2,486				(6,308	)
Cash and equivalents, beginning of period			429				7,723
Cash and equivalents, end of period		$	2,915			$	1,415

ADJUSTED EBITDA RECONCILIATION

In addition to our results calculated under generally accepted accounting principles in the United States (“GAAP”), in this earnings release we also present Adjusted EBITDA. Adjusted EBITDA is a “non-GAAP financial measure” presented as supplemental measures of the Company’s performance. It is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. The Company defines Adjusted EBITDA as net income (loss), plus net interest expense, net unrealized loss (gain) on change in fair value of derivatives, income tax (benefit) expense, deferred income taxes, depreciation, depletion, accretion and amortization, one-time costs associated with completed transactions and the associated assumed derivative contracts, non-cash share-based compensation, transaction related expenses, transaction related acquired realized derivative loss (gain), loss (gain) on marketable securities, and environmental remediation costs, net of related insurance recoveries. Company management believes this presentation is relevant and useful because it helps investors understand Big Sky Industrial’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA is presented because we believe it provides additional useful information to investors due to the various noncash items during the period. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are: Adjusted EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments; although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and other companies in this industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.

The Company’s presentation of this measure should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of this non-GAAP measure to the most comparable GAAP measure, below. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view this non-GAAP measure in conjunction with the most directly comparable GAAP financial measure.

		Three months ended September 30,
		2026				2025
Adjusted EBITDA Reconciliation
Net Income (Loss)		$	(3,496	)		$	(3,341	)
Depreciation, depletion, accretion and amortization			531				816
Non-cash loss on commodity derivatives			307				-
Interest Expense, net			-				72
Income tax benefit			-				-
Non-cash stock based compensation			593				420
Loss on sale of assets			-				10
Loss (gain) on marketable securities			27				(101	)
Impairment of oil and natural gas properties			-				869
Environmental remediation costs			1,200				-
Total Adjustments			2,658				2,086
Total Adjusted EBITDA		$	(838	)		$	(1,255	)

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Big Sky Industrial expect its first helium production and sales?

Big Sky Industrial targets spring 2027 for first production and first helium sales. Equipment installation is planned from late fourth-quarter 2026 into first-quarter 2027, with the schedule allowing for Montana winter weather.

What are the terms of Big Sky Industrial's helium sales agreement?

The agreement covers 100% take-or-pay sales over a five-year initial term at a fixed, all-in plant-gate price of $285 per Mcf. The investment-grade global industrial gas buyer handles transportation and downstream delivery. CPI-linked escalation begins March 1, 2028, with a year-three pricing redetermination.

What does Big Sky Industrial's pending Big Rose EPA plan cover?

The Big Rose monitoring, reporting and verification plan covers the location where Big Sky Industrial plans to sequester carbon dioxide captured during Phase 1 and future phases. It was submitted October 9, 2025, and accepted November 12, 2025, following the federal government shutdown. The company has addressed EPA comments and awaits final agency action.

What insurance coverage applies to Big Sky Industrial's remediation costs?

The general liability policy provides $1.0 million of pollution clean-up coverage after a $0.1 million per-occurrence deductible. The company expects to recover up to $1.0 million against approximately $1.2 million of remediation and related costs. Approval remains pending, and no insurance receivable was recognized at September 30, 2026.