Royale Energy, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026, disclosing a net loss of $2,655,281 for the nine months ended on that date and a total stockholders' deficit of $15,950,124.

Key Highlights

  • Nine-month net loss: Royale Energy reported a net loss of $2,655,281 for the nine months ended September 30, 2026, compared with $1,840,794 for the same period in 2025.
  • Third-quarter net loss: The company reported a net loss of $1,022,534 for the three months ended September 30, 2026, versus $550,293 in the prior-year quarter.
  • Revenue: Total revenues for the nine months ended September 30, 2026 were $1,817,931, up from $1,447,435 in the nine months ended September 30, 2025.
  • Deferred drilling obligations: This current liability grew to $18,249,496 at September 30, 2026, from $14,277,496 at December 31, 2025.
  • Accumulated deficit: The accumulated deficit reached $97,221,650 at September 30, 2026, compared with $94,566,369 at December 31, 2025.
  • Shares outstanding: 96,600,302 shares of common stock were issued and outstanding at both September 30, 2026 and October 30, 2026.
  • Total assets: Total assets were $18,752,809 at September 30, 2026, up from $17,002,053 at December 31, 2025, driven in part by $2,463,161 in deferred drilling costs.

Royale Energy's Financial Position and Operating Results for the Period Ended September 30, 2026

According to the filing, Royale Energy recorded total revenues of $574,432 for the three months ended September 30, 2026, compared with $613,814 for the same quarter in 2025. Oil, NGL and gas sales accounted for $574,231 of that figure. For the nine-month period, oil, NGL and gas sales totaled $1,807,005, up from $1,427,155 in the prior-year period. The company characterized no securities as registered under Section 12(b) of the Act, and the cover page of the filing lists no exchange or ticker symbol under that section.

Total costs and expenses for the nine months ended September 30, 2026 were $4,078,932, compared with $3,045,983 for the nine months ended September 30, 2025. The largest expense categories for the nine-month period were oil and gas lease operating costs of $1,393,281, general and administrative expenses of $1,446,593, and legal and accounting costs of $450,983, according to the filing. Interest expense for the nine months was $427,590, versus $296,200 in the comparable prior-year period.

The condensed consolidated balance sheet shows total liabilities of $34,702,933 at September 30, 2026, against $30,393,268 at December 31, 2025. The deferred drilling obligations line, classified as a current liability, rose by approximately $3,972,000 over the nine months, consistent with proceeds from turnkey drilling programs reported in the cash flow statement. Net cash used in operating activities was $2,065,878 for the nine months ended September 30, 2026. Cash, cash equivalents, and restricted cash at the end of the period stood at $7,978,657, the filing stated.

What Was Disclosed

Royale Energy filed its quarterly report for the period ended September 30, 2026, disclosing a nine-month net loss of $2,655,281, a total stockholders' deficit of $15,950,124, and total liabilities of $34,702,933, with 96,600,302 common shares outstanding.