Big Sky Industrial Inc. (BSIN) posts Q2 loss, advances carbon hub

Rhea-AI Filing Summary

Big Sky Industrial Inc. reported second quarter 2026 results while highlighting progress on Phase I of its Big Sky Carbon Hub in Montana. The company executed a five-year, 100% take-or-pay helium offtake agreement at a $285 per Mcf plant-gate price and advanced construction of its processing facility and gathering infrastructure, targeting first revenue in the first quarter of 2027.

For the quarter ended June 30, 2026, production was 33,747 BOE and revenue was $2.1 million, with an average realized price of $63.24/BOE. Big Sky Industrial recorded a net loss of $2.3 million or ($0.04) per share, compared with a $6.1 million loss a year earlier, and Adjusted EBITDA of $(0.9) million.

As of June 30, 2026, cash was $6.0 million and total liquidity was $21.5 million, including $15.5 million of undrawn credit facility capacity. Total debt outstanding was $4.5 million. The company completed its rebrand to Big Sky Industrial Inc., with common stock now trading on Nasdaq under the ticker BSIN, and continues to transition from a legacy E&P business toward an integrated industrial gas, carbon management, and energy platform.

Positive

• Net loss improved to $2.3 million in Q2 2026 from $6.1 million a year earlier, supported by lower lease operating expenses and absence of prior-year asset impairment.
• Liquidity strengthened to $21.5 million at June 30, 2026, including $15.5 million of undrawn credit facility capacity, providing funding flexibility for Phase I construction.
• A five-year, 100% take-or-pay helium offtake at $285 per Mcf secures contracted initial revenue for the Big Sky Carbon Hub once operations begin.
• Equity financing and a committed equity facility provided $17.2 million of cash in the first half of 2026, supporting the strategic transition and capital program.

Negative

• Production declined to 33,747 BOE in Q2 2026 from 48,816 BOE in Q2 2025, reflecting divestitures and natural declines in legacy assets.
• The core business remained loss-making, with Adjusted EBITDA of $(0.9) million in Q2 2026 and net cash used in operating activities of $3.3 million in the first half.
• Industrial gas capital expenditures of $9.7 million in the first half of 2026 drove total investing cash outflows of $10.1 million, increasing capital intensity ahead of first project revenue.

Filing Explained

After the August 4 draw, total liquidity was $16.4 million and total debt outstanding was $8,500; reported shares outstanding were 52,487,506.

The Item 2.02 Form 8-K reports the company’s results and discloses a post-quarter-end financing draw; that draw increased debt and reduced available liquidity as of August 4.

At June 30, total available liquidity was $21.5 million, including $17.5 million of undrawn credit-facility capacity; as of August 4, cash was $4.9 million and total available liquidity was $16.4 million. The company says the $4.0 million draw funded capital expenditures for its gas-processing facility.

The balance sheet reports 52,487,506 common shares issued and outstanding at June 30, versus 34,405,143 at December 31, 2025. Additional shares increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes, so the reported increase is a dilution mechanism, although the filing does not quantify holder-level dilution.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Total Revenue: $2,134,000 Q2 2026 Net Loss: $2,279,000 Q2 2026 Adjusted EBITDA: $(949,000) +5 more

8 metrics

Q2 2026 Total Revenue $2,134,000 Three months ended June 30, 2026 total revenue

Q2 2026 Net Loss $2,279,000 Net loss for the three months ended June 30, 2026

Q2 2026 Adjusted EBITDA $(949,000) Adjusted EBITDA for the three months ended June 30, 2026

Q2 2026 Production 33,747 BOE Production volume for the three months ended June 30, 2026

Average Realized Price $63.24/BOE Average realized price in Q2 2026 across oil and gas

Cash Balance $5,987,000 Cash and equivalents as of June 30, 2026

Total Liquidity $21,487,000 Cash plus credit facility availability at June 30, 2026

Total Debt Outstanding $4,500,000 Credit facility balance as of June 30, 2026

Key Terms

take-or-pay, Adjusted EBITDA, Section 45Q, full cost method, +2 more

6 terms

take-or-pay financial

"Five-Year, 100% take-or-pay helium offtake provides contracted initial revenue"

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.

Adjusted EBITDA financial

"In this earnings release we also present Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Section 45Q financial

"carbon management opportunities supported by Section 45Q federal tax credits"

Section 45Q is a U.S. federal tax credit that pays projects for capturing and permanently storing or using carbon dioxide instead of releasing it into the atmosphere. For investors, it acts like a per‑unit subsidy that improves the economics and cash flow of carbon‑capture, clean‑energy, and industrial projects—similar to getting paid for diverting waste from a landfill—making capital investment and valuation less risky and more attractive.

full cost method financial

"Oil and natural gas properties under full cost method and industrial gas properties"

The full cost method is an accounting approach that treats nearly all exploration and development spending as an asset on the balance sheet rather than as immediate expense, then spreads that cost over the life of the discovered resource. For investors, it can make profits look steadier and assets larger in the short term, but it can also mask failed projects and trigger big write-downs later if expected reserves or prices fall—similar to counting every shopping trip as a long-term pantry investment instead of a current expense.

asset retirement obligations financial

"Asset retirement obligations | | $ | 7,790"

Asset retirement obligations are a company’s recorded promise to pay for dismantling, cleaning up, or restoring property when a long-lived asset is retired — for example decommissioning a plant or removing equipment. Companies estimate the future cleanup cost today and book it as a liability (and add the cost to the asset), so it affects the balance sheet, reported profits over time, and future cash needs; investors watch it like a planned bill that can reduce cash available for returns.

credit facility financial

"amended and upsized our senior secured credit facility"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

Earnings Snapshot

Total revenue (Q2 2026): $2,134,000 · Guidance included

Three and six months ended June 30, 2026

Total revenue (Q2 2026) $2,134,000 slightly higher than $2,028,000 in Q2 2025

Net loss (Q2 2026) $2,279,000 narrowed from $6,058,000 net loss in Q2 2025

Adjusted EBITDA (Q2 2026) $(949,000) improved from $(1,290,000) in Q2 2025

Production (Q2 2026) 33,747 BOE decreased from 48,816 BOE in Q2 2025

Guidance

Commercial operations and first revenue for the Big Sky Carbon Hub remain targeted for the first quarter of 2027.

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FAQ

What were Big Sky Industrial Inc. (BSIN) revenues and production in Q2 2026?

Big Sky Industrial generated $2.1 million in total revenue in Q2 2026 on production of 33,747 BOE, with 84% of revenue from oil. Average realized pricing was $77.73/bbl for oil and $63.24/BOE overall.

How profitable was Big Sky Industrial Inc. (BSIN) in Q2 2026?

The company reported a net loss of $2.3 million, or ($0.04) per share, in Q2 2026. This compares with a $6.1 million loss in Q2 2025 and includes Adjusted EBITDA of $(0.9) million for the quarter.

What is the status of Big Sky Industrial Inc. (BSIN) Big Sky Carbon Hub project?

Phase I construction of the Big Sky Carbon Hub processing facility and gathering infrastructure is advancing, with commercial operations and first revenue targeted for Q1 2027. The company also invested $9.6 million in the project in the first half of 2026.

What key contract did Big Sky Industrial Inc. (BSIN) secure for helium sales?

Big Sky Industrial executed a five-year, 100% take-or-pay helium offtake agreement with an investment-grade global industrial gas counterparty. The contract provides initial revenue at a plant-gate price of $285 per Mcf once production begins.

What is Big Sky Industrial Inc. (BSIN) liquidity and debt position as of June 30, 2026?

As of June 30, 2026, the company held $5.987 million in cash and $4.5 million in total debt. Including $15.5 million of unused credit facility capacity, total liquidity was $21.487 million at quarter-end.

How is Big Sky Industrial Inc. (BSIN) funding its transition to industrial gas and carbon management?

In the first half of 2026, the company raised $8.1 million via an underwritten offering and $9.1 million through a committed equity facility, while investing $9.7 million in industrial gas capital expenditures for the Big Sky Carbon Hub.

false 0000101594 0000101594 2026-08-11 2026-08-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 11, 2026

BIG SKY INDUSTRIAL INC.

(Exact name of registrant as specified in its charter)

Delaware		000-06814		83-0205516
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1616 S. Voss, Suite 725, Houston, Texas		77057
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (303) 993-3200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common Stock, $0.01 par value		USEG		The NASDAQ Stock Market LLC (Nasdaq Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 11, 2026, Big Sky Industrial Inc. (“Big Sky Industrial” or the “Company”) issued a press release regarding its financial results for the three and six months ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and incorporated into this item 2.02 by reference.

The information contained in this Current Report and Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as expressly set forth by specific reference in such a filing.

The Company is making reference to non-GAAP financial information in the press release, presentation and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release and presentation.

This Current Report on Form 8-K, including the press release attached as Exhibit 99.1 to this Current Report on Form 8-K, contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and assumptions. You can identify these forward-looking statements by words such as “may,” “should,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. These forward-looking statements relate to the Company’s current expectations and are subject to the limitations and qualifications set forth in the press release and presentation as well as in the Company’s other filings with the Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements. These statements also involve known and unknown risks, which may cause the results of the Company, its divisions and concepts to be materially different than those expressed or implied in such statements, which include, without limitation, risks associated with increased inflation, interest rates and possible recessions; the Company’s ability to comply with the terms of its senior credit facilities; the ability of the Company to retain and hire key personnel; the business, economic and political conditions in the markets in which the Company operates; fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities; competition; operating risks; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; the Company’s anticipated operational results for 2026 including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; acquisition risks; liquidity and capital requirements; the effects of governmental regulation; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup and the impact of delays thereon; adverse changes in the market for the Company’s oil and natural gas production; dependence upon third-party vendors; risks associated with COVID-19, the global efforts to stop the spread of COVID-19, potential downturns in the U.S. and global economies due to COVID-19 and the efforts to stop the spread of the virus, and COVID-19 in general; economic uncertainty relating to increased inflation and global conflicts; the lack of capital available on acceptable terms to finance the Company’s continued growth; the review and evaluation of potential strategic transactions and their impact on stockholder value; the process by which the Company engages in evaluation of strategic transactions; the outcome of potential future strategic transactions and the terms thereof; and other risk factors, and others, including those referenced in the press release and the Company’s filings with the Securities and Exchange Commission. Accordingly, readers should not place undue reliance on any forward-looking statements. Forward-looking statements may include comments as to the Company’s beliefs and expectations as to future financial performance, events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the Company’s control. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Cautionary Statement Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s periodic and current filings with the SEC, including the Form 10-Qs and Form 10-Ks, filed with the SEC and available at www.sec.gov and in the “Investors” – “SEC Filings” section of the Company’s website at https://usnrg.com. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.		Description
99.1*		Press Release of Big Sky Industrial Inc., dated August 11, 2026
104		Inline XBRL for the cover page of this Current Report on Form 8-K

* Furnished herewith.

The inclusion of any website address in this Form 8-K, and any exhibit thereto, is intended to be an inactive textual reference only and not an active hyperlink. The information contained in, or that can be accessed through, such website is not part of or incorporated into this Form 8-K.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BIG SKY INDUSTRIAL INC.
	By:	/s/ Ryan Smith
		Ryan Smith
		Chief Executive Officer

Dated: August 11, 2026

 Exhibit 99.1

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

Advances Phase I Processing Facility Construction and Gathering Infrastructure Toward Targeted First Revenue in the First Quarter of 2027

Five-Year, 100% Take-or-Pay Helium Offtake Provides Contracted Initial Revenue at a $285 per Mcf Plant-Gate Price

Completes Corporate Rebrand to Big Sky Industrial Inc., with Common Stock Now Trading on Nasdaq under Ticker Symbol "BSIN"

HOUSTON, August 11, 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 six months ended June 30, 2026, while highlighting construction and development progress during the quarter at the Company’s Big Sky Carbon Hub, its flagship project in Montana. Commercial operations and first revenue remain targeted for the first quarter of 2027

MANAGEMENT COMMENTS

“The second quarter of 2026 was one of the most productive stretches in the Company’s history,” said Ryan Smith, President and Chief Executive Officer of Big Sky Industrial. “During the quarter, we advanced construction of our Phase 1 processing facility, began installing infrastructure, executed a five-year, 100% take-or-pay helium offtake agreement with an investment-grade global industrial gas counterparty, amended and upsized our senior secured credit facility, and completed our corporate rebrand to Big Sky Industrial. We invested $9.6 million in Big Sky through the first six months of the year. Together, these milestones advance our transition from a legacy E&P company and materially de-risk the path to first revenue at the Big Sky Carbon Hub.

“Helium demand continues to grow while global supply remains structurally constrained, the market for captured and sequestered CO₂ is expanding alongside supportive federal 45Q policy, and secure domestic supplies of strategic materials have rarely been more important to the United States. With our commercial offtake in place, our regulatory path advancing, and construction underway, we have a clear sequence of catalysts between now and first revenue in the first quarter of 2027. Our focus through the balance of the year is completing gathering infrastructure, securing our MRV approvals, and commissioning the plant, while maintaining the financial flexibility to deliver Phase 1 and to advance planning for Phase 2. We believe the value we are building will become increasingly visible to the market as we execute against this plan, and we remain focused on delivering long-term shareholder value.”

SECOND QUARTER 2026 STRATEGIC AND OPERATIONAL HIGHLIGHTS

● Phase 1 Processing Facility Construction Advancing on Schedule. Following the Final Investment Decision (“FID”) announced on March 18, 2026 and the execution of a fixed-scope engineering, procurement, and construction (“EPC”) agreement with CANUSA EPC, construction of the Phase 1 processing facility at the Big Sky Carbon Hub advanced during the quarter. Industrial gas capital expenditures totaled $9.6 million during the first six months of 2026, compared to $2.5 million in the prior-year period, as the project moved from development into construction. The plant is designed for approximately 8 MMcf/d of inlet capacity, targeting approximately 14 MMcf of high-purity helium and the capture and permanent sequestration or utilization of approximately 125,000 metric tons of CO₂ per year at initial operations, with commercial operations targeted for the first quarter of 2027

● Five-Year, 100% Take-or-Pay Helium Offtake Agreement Executed. On April 27, 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. Under the agreement, the counterparty is responsible for all transportation, logistics, and downstream delivery of the helium, and none of those costs are borne by Big Sky. The full $285 per Mcf is realized by the Company at the plant gate, with no midstream or delivery deductions. The agreement establishes contracted, initial helium revenue and supports the commercial viability of the Big Sky development.

● Phase 1 Capital Stack. On April 20, 2026, the Company amended its senior secured credit agreement, doubling the borrowing base to $20 million, fixing the interest margin at 200 basis points over the alternate base rate, and suspending quarterly financial covenant testing through the fiscal quarter ending March 31, 2027. The facility matures May 31, 2029, with no prepayment penalties. Together with the underwritten equity offering completed in March 2026, the Company is in position to fund the project through commercial operations.

● MRV Applications Advancing in Active EPA Review. Both Monitoring, Reporting, and Verification (“MRV”) submissions — Big Rose and Cut Bank — are in active EPA review, with the Company continuing to expect approvals in the coming months. These approvals are required to access the Section 45Q tax credit framework, which represents approximately $130 million of credit value over the first 12 years of Phase 1 operations alone.

● Field Development and Gathering Infrastructure on Schedule. Drilling and completions were completed in August 2025 with three successfully drilled wells, plus two acquired wells. Two Class II permitted injection wells are operational. Gathering infrastructure installation is underway and is scheduled across the summer and fall of 2026, with facility commissioning targeted for late 2026 and first gas and first revenue targeted for the first quarter of 2027.

● Phase 2 Planning Advancing. The Company is advancing early-stage engineering and planning for Phase 2, a second processing plant on the same footprint that would use existing infrastructure, permits, and field operations. Phase 2 is not included in the Company’s base case, and the Company expects to provide additional detail as planning progresses

● Corporate Rebrand to Big Sky Industrial Inc. Completed. On June 8, 2026, the Company completed its corporate name change from U.S. Energy Corp. to Big Sky Industrial Inc., and its common stock began trading on the Nasdaq Capital Market under the new ticker symbol “BSIN.” The new name aligns the Company’s public market identity with its core operating strategy: the development and commercialization of helium and carbon management assets at the Big Sky Carbon Hub.

NEXT MILESTONES

● MRV Approvals (Big Rose and Cut Bank). Both submissions are in active EPA review, with approvals expected during the coming months.

● Gathering Infrastructure. Installation is underway and is scheduled across the summer and fall of 2026.

● Phase I Facility Commissioning. Targeted for late 2026.

● First Gas, Commercial Operations, and First Revenue. Targeted for the first quarter of 2027.

BALANCE SHEET AND LIQUIDITY UPDATE

As of June 30, 2026, Big Sky Industrial had a cash balance of $6.0 million and total available liquidity of $21.5 million, including $17.5 million of undrawn capacity under the Company’s amended senior secured credit facility. Subsequent to quarter end, the Company drew $4.0 million under the facility to fund capital expenditures associated with the construction of its gas processing facility; as of August 4, 2026, the Company’s cash balance was $4.9 million and total available liquidity was $16.4 million. The Company believes it is well positioned to advance Phase 1 toward commercial operations in the first quarter of 2027, while retaining multiple financing levers to fund future development and to pursue additional value-enhancing opportunities as they arise.

		Balance as of
		June 30, 2026				December 31, 2025				August 4, 2026*
Cash and debt balance:
Total debt outstanding		$	4,500			$	2,500			$	8,500
Less: Cash balance		$	5,987			$	429			$	4,900
Net debt balance		$	(1,487	)		$	2,071			$	3,600
Liquidity:
Cash balance		$	5,987			$	429			$	4,900
Plus Credit facility availability		$	15,500			$	7,500			$	11,500
Total Liquidity		$	21,487			$	7,929			$	16,400

*Represents liquidity profile as of August 4, 2026, which reflects the Company’s $4.0 million draw on its amended credit facility subsequent to quarter end to fund capital expenditures associated with the construction of the Company’s gas processing facility

Second QUARTER 2026 FINANCIAL RESULTS

Second quarter 2026 production was 33,747 barrels of oil equivalent (“BOE”) (68% oil), compared to 48,816 BOE the second quarter of 2025. For the second quarter 2026 revenue totaled $2.1 million (84% oil), compared to second quarter of 2025 revenue of $2.0 million. Second quarter 2026 realized average sales prices of $77.73/bbl and $2.20/mcf for oil and natural gas, respectively, resulting in an average realized price of $63.24/BOE as compared to second quarter 2025 which averaged $55.14/bbl, $2.00/mcf for oil and natural gas, respectively, resulting in an average realized price of $41.54/BOE. The sequential decline in production and revenue was primarily driven by Company’s strategic divestitures, representing the final significant step in the Company’s legacy asset optimization program. The divestitures, combined with natural production declines, accounted for substantially all of the quarter-over-quarter variance. As previously communicated, this monetization program funded the Company’s pivot to its industrial gas, energy, and carbon management platform and is now substantially complete.

Second quarter 2026 lease operating expense totaled $1.0 million, compared to $1.5 million for the second quarter 2025. Cash general and administrative expense totaled $1.8 million for the second quarter 2026 compared to $1.7 million for the second quarter 2025. The year-over-year increase reflects elevated 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. Equity compensation expense totaled $1.1 million for both the second quarter of 2026 and the second quarter of 2025.

Big Sky Industrial reported a net loss of $2.3 million, or ($0.04) per diluted share during the second quarter 2026, compared to a net loss of $6.1 million, or ($0.19) per share in the second quarter of 2025, which included a $2.8 million impairment of oil and natural gas properties. Adjusted EBITDA was $(0.9) million, compared to $(1.3) million in the second quarter of 2025.

CONFERENCE CALL DETAILS

Big Sky Industrial will host a conference call to discuss its second quarter 2026 financial and operating results on August 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 August 25, 206.

Date: Tuesday, August 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: 13761996

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 as a federally designated critical mineral, 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 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 June 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)

		June 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash and equivalents		$	5,987			$	429
Oil and natural gas sales receivables			629				454
Marketable equity securities			116				146
Commodity derivative			147				-
Other current assets			1,030				956
Total current assets			7,909				1,985
Oil and natural gas properties under full cost method and industrial gas properties:
Evaluated oil and natural gas properties			132,654				132,459
Less accumulated depreciation, depletion and amortization			(117,904	)			(117,237	)
Net oil and natural gas properties			14,750				15,222
Unproved industrial gas properties, not subject to amortization			32,353				22,479
Other Assets:
Property and equipment, net			320				318
Right-of-use asset			266				356
Commodity derivative			20				-
Other assets			329				270
Total other assets			935				944
Total assets		$	55,947			$	40,630
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	1,876			$	1,592
Revenue and royalties payable			3,954				3,921
Asset retirement obligations			476				300
Current lease obligation			217				210
Total current liabilities			6,523				6,023
Noncurrent liabilities:
Credit facility			4,500				2,500
Asset retirement obligations			7,790				7,706
Long-term lease obligation, net of current portion			95				206
Total noncurrent liabilities			12,385				10,412
Total liabilities			18,908				16,435
Commitments and contingencies (Note 8)
Shareholders’ equity:
Common stock, $0.01 par value; 245,000,000 shares authorized; 52,487,506 and 34,405,143 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively			525				345
Additional paid-in capital			253,891				235,762
Accumulated deficit			(217,377	)			(211,912	)
Total shareholders’ equity			37,039				24,195
Total liabilities and shareholders’ equity		$	55,947			$	40,630

BIG SKY INDUSTRIAL INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE Three and Six Months Ended June 30, 2026 AND 2025

(In thousands, except share and per share amounts)

		Three Months Ended June 30,								Six Months Ended June 30,
		2026				2025				2026				2025
Revenue:
Oil		$	2,034			$	1,844			$	3,411			$	3,615
Natural gas and liquids			100				184				328				607
Total revenue			2,134				2,028				3,739				4,222
Operating expenses:
Lease operating expenses			995				1,520				1,906				3,145
Production taxes			165				148				295				296
Depreciation, depletion, accretion and amortization			591				1,118				1,151				2,237
Impairment of oil and natural gas properties			-				2,760				-				2,760
Exploration expense			121				51				222				51
General and administrative expenses			2,647				2,246				5,694				4,635
Loss on sale of assets			-				424				-				424
Total operating expenses			4,519				8,267				9,268				13,548
Operating loss			(2,385	)			(6,239	)			(5,529	)			(9,326	)
Other income (expense):
Commodity derivative gain, net			167				-				167				-
Interest expense, net			(10	)			(47	)			(74	)			(95	)
Other income, net			(51	)			228				(29	)			252
Total other (expense)			106				181				64				157
Net loss before income taxes		$	(2,279	)		$	(6,058	)		$	(5,465	)		$	(9,169	)
Income tax expense			-				-				-				-
Net loss		$	(2,279	)		$	(6,058	)		$	(5,465	)		$	(9,169	)
Basic and diluted weighted average shares outstanding			52,392,618				32,672,866				46,553,898				33,370,898
Basic and diluted loss per share		$	(0.04	)		$	(0.19	)		$	(0.12	)		$	(0.27	)

BIG SKY INDUSTRIAL INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE Six Months Ended June 30, 2026 AND 2025

(in thousands)

		2026				2025
Cash flows from operating activities:
Net loss		$	(5,465	)		$	(9,169	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, depletion, accretion, and amortization			1,151				2,237
Impairment of oil and natural gas properties			-				2,760
Loss on sale of assets			-				424
Commodity derivatives gain			(167	)			-
Commodity derivative settlements received			-				-
Loss (gain) on marketable equity securities			30				(79	)
Amortization of debt issuance costs			16				45
Stock-based compensation			1,131				1,034
Right-of-use asset amortization			161				-
Shares issued to consultants			90				85
Changes in operating assets and liabilities:
Oil and natural gas sales receivable			(175	)			731
Accounts payable and accrued liabilities			108				(3,826	)
Other operating assets and liabilities, net			(29	)			(273	)
Payments on operating lease liability			(103	)			(96	)
Net cash used in operating activities			(3,252	)			(6,127	)
Cash flows from investing activities:
Acquisition of industrial gas properties			(91	)			(2,128	)
Industrial gas capital expenditures			(9,700	)			(2,504	)
Oil and natural gas capital expenditures			(303	)			(18	)
Property and equipment expenditures			-				(3	)
Net proceeds from sale of oil and natural gas properties			-				144
Net cash used in investing activities			(10,094	)			(4,509	)
Cash flows from financing activities:
Borrowings on credit facility			2,000				-
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			18,905				9,641
Net change in cash and equivalents			5,558				(995	)
Cash and equivalents, beginning of period			429				7,723
Cash and equivalents, end of period		$	5,987			$	6,728

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), and loss (gain) on marketable securities. 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 June 30,
		2026				2025
Adjusted EBITDA Reconciliation
Net Income (Loss)		$	(2,279	)		$	(6,058	)
Depreciation, depletion, accretion and amortization			591				1,118
Non-cash gain on commodity derivatives			(167	)			-
Interest Expense, net			10				47
Income tax benefit			-				-
Non-cash stock based compensation			845				563
Loss on sale of assets			-				424
Loss (gain) on marketable securities			52				(144	)
Impairment of oil and natural gas properties			-				2,760
Total Adjustments			1,331				4,768
Total Adjusted EBITDA		$	(949	)		$	(1,290	)

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