Royale Energy, Inc.

Sub-scale California/Texas oil & gas micro-cap with deeply negative margins and near-exhausted liquidity.

Strengths

• Operates and controls most of its own wells with established California gas and Texas assets

Risks

• Deeply negative net margin (-97%), operating margin (-84%) and OCF margin (-99%); ROA -13.8% with recurring impairments
• Distress-adjacent liquidity — current ratio 0.50 and only $1.9M cash; the 17.5% ROE is a negative-equity artifact, not a strength

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -96.9%)
• Weak liquidityCurrent ratio 0.50 (<1)