# Altex Industries Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Altex Industries Inc).

## Overview

ALTEX INDUSTRIES INC is a micro-cap oil and gas company whose remaining operations are primarily passive, non-working interests in producing properties. Its proved developed reserves are tied to a 4.4% overriding royalty interest in the Glo Field in Campbell County, Wyoming, with additional very small mineral interests in Utah. The company did not participate in drilling during FY2024 or FY2025 and disclosed that it was not engaged in any oil and gas operations as of late November 2025. With low production volumes, the business model relies on commodity-linked production receipts, occasional asset sales, and interest income on cash balances to cover corporate overhead.

## Products & services

• Overriding royalty interest (4.4%) in Glo Field, Wyoming
• Non-working interests in producing oil and gas wells
• Sale of oil, gas, and mineral interests (asset monetization)
• Interest income on cash balances
• Mineral interests in Utah (small, largely passive)

- **Oil production (royalty/non-working interests)** (55%) — Revenue from oil volumes attributable to non-working and overriding royalty interests.
- **Natural gas production (royalty/non-working interests)** (25%) — Revenue from gas volumes attributable to non-working and overriding royalty interests.
- **Asset sales of oil, gas, and mineral interests** (10%) — Occasional monetization of mineral and property interests, recognized as gains when sold.
- **Interest income and other** (10%) — Interest earned on cash balances and other minor income sources.

- Overriding royalty interest (4.4%) in Glo Field, Wyoming
- Non-working interests in producing oil and gas wells
- Sale of oil, gas, and mineral interests (asset monetization)
- Interest income on cash balances
- Mineral interests in Utah (small, largely passive)

## Customers

ALTEX’s direct customers are the purchasers of crude oil and natural gas produced from the wells in which it holds non-working/royalty interests, typically via the operator’s marketing arrangements. Because ALTEX is not the operator and does not market production itself, it is economically exposed to realized commodity prices and post-production deductions rather than customer concentration in the traditional sense. The company’s cash generation is therefore driven by production volumes from third-party-operated wells and the pricing received for oil and gas. In addition, when ALTEX sells mineral or property interests, the effective “customer” is the buyer of those interests (often an industry participant or financial buyer).

- **Crude oil offtakers (via operators)** (primary) — Buy crude oil produced from wells where ALTEX has royalty/non-working interests; demand is driven by local gathering/transport access and refinery markets.
- **Natural gas offtakers (via operators)** (secondary) — Buy natural gas produced from wells where ALTEX has royalty/non-working interests; pricing and volumes depend on basin differentials and midstream availability.
- **Mineral/property interest buyers** (emerging) — Acquire ALTEX’s oil, gas, and mineral interests when the company monetizes assets for cash (e.g., Utah interests sold for cash).

- Oil purchasers taking crude from operator-marketed production streams
- Natural gas purchasers taking gas from operator-marketed production streams
- Operators/working-interest owners who remit royalty/override payments
- Buyers of mineral and property interests in occasional asset sales

## Geography

ALTEX’s oil and gas exposure is concentrated in the United States, with production located in Utah and Wyoming. Its proved developed reserves are specifically associated with the Glo Field in Campbell County, Wyoming, reflecting a narrow asset footprint and limited diversification by basin. The company also holds very small mineral interests in Utah and previously sold certain Utah oil, gas, and mineral interests for cash. This geographic concentration increases sensitivity to basin-specific operating performance by third-party operators, local pricing differentials, and state-level regulatory or tax changes.

- United States-only footprint with production in Utah and Wyoming
- Proved developed reserves tied to Glo Field in Campbell County, WY
- Very small mineral interests in Utah; history of Utah asset sales
- Concentration heightens exposure to local operator performance
- State-level rules/taxes in UT and WY can disproportionately matter

## Strategy

The company’s near-term challenge is that, at current production levels and commodity prices, it expects revenue to be unlikely to exceed corporate expenses. Management indicates that improving cash generation would require investing a substantial portion of cash balances into interests in producing wells or another revenue-producing venture, but it also discloses that no such capital expenditures are currently planned. As a result, strategy appears oriented toward maintaining liquidity, controlling overhead, and preserving optionality to pursue acquisitions or investments if attractive opportunities arise. The company also relies on interest income and potential asset sales as supplemental sources of cash while it evaluates reinvestment options.

- **Rebuild revenue base through producing-interest investments** (medium-term) — Management states current production is unlikely to cover expenses without new revenue-producing assets.
- **Maintain financial flexibility and minimize fixed commitments** (short-term) — With no material capex commitments disclosed, flexibility helps manage downside if prices/production weaken.

- Preserve liquidity given low production and overhead burden
- Evaluate acquisitions of producing interests to add cash flow
- Maintain optionality for non-oil-and-gas revenue ventures
- Limit capital commitments; no material capex currently planned
- Use interest income/asset sales to support cash needs

## Risks

ALTEX’s business risk is dominated by its very small, concentrated production base and reliance on third-party operators, which makes cash generation highly sensitive to well performance and downtime outside its control. Commodity price volatility in oil and natural gas can quickly swing revenue given the lack of hedging disclosure and limited diversification. The company also highlights the likelihood of ongoing losses unless it deploys cash into revenue-producing assets, creating reinvestment/execution risk if it pursues acquisitions. Additional risks typical for small E&P royalty holders include environmental and asset retirement obligation surprises, and operational/market access constraints that can widen local price differentials. The company also discloses limited formal processes around third-party cybersecurity risk, which could disrupt SEC reporting or lead to financial losses from bank account attacks.

- **Revenue unlikely to exceed expenses at current production levels** [high] — Management states that, given current production, cash balances, rates, and prices, revenue is unlikely to cover expenses without new investments.
- **Unanticipated asset retirement obligations and environmental expense** [medium] — The company flags ARO and environmental expense as potential uncertainties that could materially affect results.
- **Cybersecurity controls and third-party risk management are informal** [medium] — The company discloses no formal processes for identifying cybersecurity risks associated with third-party service providers and notes potential for delayed SEC filings or bank account losses.

- Low production levels may not cover corporate overhead
- Commodity price swings directly impact realized revenue
- Third-party operator control over volumes, costs, and timing
- Concentrated assets in UT/WY increase basin-specific exposure
- Unanticipated environmental costs or asset retirement obligations
- Acquisition/investment execution risk if cash is redeployed
- Cybersecurity governance gaps with third-party providers

## Accounting

Reported results can be heavily influenced by non-recurring items, such as gains on asset sales; for example, the company recorded a gain when it sold certain Utah oil, gas, and mineral interests for cash with a zero-dollar basis. Reserve estimates are prepared by a registered professional petroleum engineer using management-supplied ownership and revenue data, making proved reserve quantities and related depletion/impairment considerations sensitive to assumptions and data quality. The company’s lease extension resulted in recognition of a right-of-use asset and lease liability, which affects reported assets, liabilities, and expense presentation versus prior periods. Accrued but unpaid salary and bonus (and payroll taxes) deferred by the president represent a significant estimate/obligation that can change liquidity and expense timing if payment is demanded. Finally, oil and gas revenue and margins can fluctuate materially period-to-period due to changes in realized oil/gas prices and production volumes, complicating comparability.

- **Gain on sale of oil, gas, and mineral interests (zero basis)** — Can inflate net income in periods with asset sales and reduce comparability.
- **Reserve estimates for proved developed reserves** — Affects disclosures and may influence depletion/impairment judgments.
- **Lease right-of-use asset and lease liability recognition** — Increases reported assets and liabilities and changes expense classification.
- **Accrued and deferred salary/bonus payable to president** — Creates liquidity timing risk and affects working capital analysis.

- Asset sale gains can dominate earnings (zero-basis Utah sale gain)
- Reserve estimation relies on engineer + management-supplied data
- Lease accounting adds ROU asset and lease liability after extension
- Large accrued/deferred executive compensation affects liabilities
- Commodity price/volume volatility drives quarter-to-quarter swings

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*Last updated: 2026-08-11T04:46:17.628418+00:00*