Big Sky Industrial Inc. Reports Third Quarter 2026 Results and Highlights Phase 1 Construction Progress at Big Sky Carbon Hub
BIG SKY INDUSTRIAL INC. (BSIN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Big Sky Industrial Inc. Reports Third Quarter 2026 Results and Highlights Phase 1 Construction Progress at Big Sky Carbon Hub HOUSTON, November 10, 2026 (GLOBE NEWSWIRE) — Big Sky Industrial Inc. (NASDAQ: BSIN) (“Big Sky Industrial” or the “Company”), an integrated i
How this was made
The 30-second read
Why it matters
The filing provides the first public details on Phase 1 construction, a five‑year helium off‑take at $285 per Mcf, and ongoing financing discussions, offering investors fresh data to assess the project's viability.
Market read
First‑report quarterly results and project milestones provide actionable insight for investors in niche industrial‑gas and carbon‑capture equities.
What to watch
Potential regulatory delays for EPA MRV approval and 45Q tax‑credit monetization could affect timelines.
Big Sky Industrial reports Q3 2026 net loss of $3,496 thousand and revenue of $1,955 thousand, up 12% year over year, while Phase 1 construction at the Big Sky Carbon Hub advances toward spring 2027 first production
Q3 2026 revenue rose 12% year over year on a 30% higher realized price per BOE, but production fell, lease operating expense more than doubled including $1,200 thousand of remediation costs, the net loss widened to $3,496 thousand from $3,341 thousand, Adjusted EBITDA stayed negative at $(838) thousand, and cash of $2,915 thousand against $8,500 thousand of total debt leaves the company dependent on pending financing.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 productionother | 30,628 BOE (76% oil) | – | – |
| Q3 2026 total revenueGAAP | $1.96M | – | 12% |
| Q3 2026 oil revenueGAAP | $1.81M | – | – |
| Q3 2026 natural gas and liquids revenueGAAP | $145K | – | – |
| Q3 2026 realized oil priceother | $77.30/bbl | – | – |
| Q3 2026 realized natural gas priceother | $3.35/mcf | – | – |
| Q3 2026 average realized price per BOEother | $63.83/BOE | – | 30% |
| Q3 2026 lease operating expensesGAAP | $2.11M | – | – |
| Q3 2026 lease operating expense excluding remediation costs (per BOE)other | $29.71 per BOE | – | – |
| Q3 2026 production taxesGAAP | $158K | – | – |
| Q3 2026 depreciation, depletion, accretion and amortizationGAAP | $531K | – | – |
| Q3 2026 impairment of oil and natural gas propertiesGAAP | - | – | – |
| Q3 2026 exploration expenseGAAP | $88K | – | – |
| Q3 2026 general and administrative expensesGAAP | $2.20M | – | – |
| Q3 2026 cash general and administrative expenseother | $1.6M | – | – |
| Q3 2026 equity compensation expenseother | $600K | – | – |
| Q3 2026 loss on sale of assetsGAAP | - | – | – |
| Q3 2026 total operating expensesGAAP | $5.09M | – | – |
| Q3 2026 operating lossGAAP | −$3.13M | – | – |
| Q3 2026 commodity derivative loss, netGAAP | −$336K | – | – |
| Q3 2026 interest expense, netGAAP | - | – | – |
| Q3 2026 other income (expense), netGAAP | −$27K | – | – |
| Q3 2026 total other (expense)GAAP | −$363K | – | – |
| Q3 2026 net lossGAAP | −$3.50M | – | – |
| Q3 2026 basic and diluted loss per shareGAAP | $(0.07) | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | −$838K | – | – |
| Q3 2026 environmental remediation costs excluded from Adjusted EBITDAnon-GAAP | $1.2M | – | – |
| Nine months 2026 total revenueGAAP | $5.69M | – | – |
| Nine months 2026 oil revenueGAAP | $5.22M | – | – |
| Nine months 2026 natural gas and liquids revenueGAAP | $473K | – | – |
| Nine months 2026 lease operating expensesGAAP | $4.02M | – | – |
| Nine months 2026 production taxesGAAP | $453K | – | – |
| Nine months 2026 depreciation, depletion, accretion and amortizationGAAP | $1.68M | – | – |
| Nine months 2026 impairment of oil and natural gas propertiesGAAP | - | – | – |
| Nine months 2026 exploration expenseGAAP | $310K | – | – |
| Nine months 2026 general and administrative expensesGAAP | $7.89M | – | – |
| Nine months 2026 loss on sale of assetsGAAP | - | – | – |
| Nine months 2026 total operating expensesGAAP | $14.36M | – | – |
| Nine months 2026 operating lossGAAP | −$8.66M | – | – |
| Nine months 2026 commodity derivative loss, netGAAP | −$169K | – | – |
| Nine months 2026 interest expense, netGAAP | −$74K | – | – |
| Nine months 2026 other income (expense), netGAAP | −$56K | – | – |
| Nine months 2026 total other (expense) incomeGAAP | −$299K | – | – |
| Nine months 2026 net lossGAAP | −$8.96M | – | – |
| Nine months 2026 basic and diluted loss per shareGAAP | $(0.18) | – | – |
| Nine months 2026 net cash used in operating activitiesGAAP | −$4.76M | – | – |
| Nine months 2026 net cash used in investing activitiesGAAP | −$15.65M | – | – |
| Nine months 2026 industrial gas properties capital expendituresGAAP | −$15.17M | – | – |
| Nine months 2026 net cash provided by financing activitiesGAAP | $22.91M | – | – |
| Cash and equivalents as of September 30, 2026GAAP | $2.92M | – | – |
| Total debt outstanding as of September 30, 2026GAAP | $8.5M | – | – |
| Total liquidity as of September 30, 2026other | $14.41M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oil revenue (Q3 2026)The filing reports Q3 2026 total revenue of $1,955 thousand, up 12% year over year, as a 30% increase in the average realized price per BOE more than offset lower volumes. The production decline is attributed by the company to its 2025 divestitures of Wyoming and West Texas properties and natural production declines in remaining assets. | $1.81M | – | – |
| Natural gas and liquids revenue (Q3 2026)Printed as a revenue line in the statement of operations. The filing does not explain the change. | $145K | – | – |
Capital returns
- No repurchases of common stock were reported in the nine months ended September 30, 2026; the nine months 2025 column shows repurchases of common stock of $(316) thousand and a related party share repurchase of $(1,574) thousand.
- Shares withheld to settle tax withholding obligations for restricted stock awards were $(171) thousand in the nine months 2026 versus $(346) thousand in the nine months 2025.
- The company reports no dividends in the documents provided.
What drove it
- Revenue growth: the company states that revenue increased 12% year over year as a 30% increase in the average realized price per BOE more than offset lower volumes.
- Lease operating expense increase: the company states the increase reflects approximately $1.2 million of remediation and related costs for a produced fluids release from a gathering line in its legacy oil operations. Excluding these costs, lease operating expense was $0.9 million, or $29.71 per BOE, against $29.58 per BOE in Q3 2025.
- Production decline: the company states the decline primarily reflects its 2025 divestitures of Wyoming and West Texas properties and natural production declines in its remaining assets.
- Cash G&A: the company states the decrease primarily reflects lower accounting and tax professional fees.
- Phase 1 construction: fabrication of the modular Phase 1 processing facility began under the fixed-scope EPC agreement with CANUSA EPC; the company targets first production in spring 2027.
- Helium offtake: a five-year, 100% take-or-pay agreement at a fixed, all-in price of $285 per Mcf realized at the plant gate, with the buyer responsible for transportation and downstream delivery.
- Insurance: a claim under the general liability policy is pending; the company expects to recover up to $1.0 million and recognized no insurance receivable as of September 30, 2026.
Concerns
- Net loss widened to $(3,496) thousand from $(3,341) thousand, while the nine months net loss narrowed to $(8,960) thousand from $(12,510) thousand.
- Operating loss of $(3,133) thousand in Q3 2026; Adjusted EBITDA of $(838) thousand remains negative.
- Cash of $2,915 thousand against total debt of $8,500 thousand, with total liquidity of $14,415 thousand that includes $11,500 thousand of undrawn credit facility capacity.
- Net cash used in investing activities of $(15,655) thousand in the nine months, mainly industrial gas property capital expenditures of $(15,170) thousand, funded by $22,905 thousand of financing inflows.
- The company states that the new, larger credit facility and the Section 45Q monetization are still in discussions and not completed.
- The Big Rose MRV plan approval is in the final stage of the EPA process; the company states the timing of a final decision rests with the EPA. The company also states MRV approval is not a condition to starting the Phase 1 plant or selling helium.
- Phase 2 final investment decision is expected in the coming months and will follow completion of financing and final plant sizing.
- Production fell to 30,628 BOE from 35,326 BOE year over year.
What to watch
- Big Rose MRV plan final EPA determination.
- Closing of the new, larger senior secured credit facility and terms relative to the current $8,500 thousand of debt.
- Completion of the Section 45Q credit monetization.
- On-site civil work and Phase 1 equipment installation from late Q4 2026 into Q1 2027.
- First production and first helium sales targeted for spring 2027.
- Insurance recovery of up to $1.0 million on the remediation claim.
- Phase 2 final investment decision timing.
- Cash and liquidity trajectory given operating cash outflow of $(4,764) thousand in the nine months.
Balance sheet and cash flow
- Cash and equivalents were $2,915 thousand at September 30, 2026, against $429 thousand at December 31, 2025.
- Total debt outstanding (credit facility) was $8,500 thousand at September 30, 2026, against $2,500 thousand at December 31, 2025; net debt balance was $5,585 thousand against $2,071 thousand.
- Liquidity of $14,415 thousand at September 30, 2026 includes $11,500 thousand of credit facility availability, against $7,929 thousand total liquidity at December 31, 2025 (credit facility availability $7,500 thousand).
- Total assets were $62,483 thousand at September 30, 2026 versus $40,630 thousand at December 31, 2025; total shareholders' equity was $34,137 thousand versus $24,195 thousand.
- Unproved industrial gas properties, not subject to amortization, rose to $42,502 thousand from $22,479 thousand.
- Accounts payable and accrued liabilities rose to $7,054 thousand from $1,592 thousand.
- Nine months 2026 proceeds from underwritten offering were $8,086 thousand and proceeds from committed equity facility were $9,103 thousand; borrowings on the credit facility were $6,000 thousand. Net cash used in operating activities was $(4,764) thousand.
- 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.
- Common shares outstanding were 52,499,955 at September 30, 2026 versus 34,405,143 at December 31, 2025.
Analysis
Big Sky Industrial reported third quarter 2026 total revenue of $1,955 thousand (GAAP), up 12% year over year per the filing, with the company stating that a 30% increase in the average realized price per BOE more than offset lower volumes. Production was 30,628 BOE against 35,326 BOE a year earlier, which the company attributes primarily to its 2025 divestitures and natural declines. Realized oil prices were $77.30/bbl against $60.12/bbl, and natural gas $3.35/mcf against $2.82/mcf. Oil revenue was $1,810 thousand against $1,587 thousand, while natural gas and liquids revenue was $145 thousand against $151 thousand.
Costs moved in two directions. Lease operating expense more than doubled to $2,110 thousand from $1,045 thousand, and the company states this includes approximately $1.2 million of remediation costs for a produced fluids release in its legacy oil operations. Excluding those costs, lease operating expense was $0.9 million, or $29.71 per BOE, against $29.58 per BOE a year earlier. The company has filed an insurance claim for up to $1.0 million but has recognized no receivable. Cash G&A declined to $1.6 million from $1.7 million, which the company attributes to lower accounting and tax professional fees. General and administrative expenses on a GAAP basis rose to $2,201 thousand from $2,113 thousand. Total operating expenses were $5,088 thousand against $5,117 thousand, so the operating loss narrowed only slightly to $(3,133) thousand from $(3,379) thousand.
The net loss was $(3,496) thousand, or $(0.07) per share, against $(3,341) thousand, or $(0.10) per share, in the prior-year quarter. The prior-year quarter included a $869 thousand impairment, so the comparison is not like for like. Adjusted EBITDA, a non-GAAP measure, was $(838) thousand against $(1,255) thousand. The nine-month net loss narrowed to $(8,960) thousand from $(12,510) thousand, driven in the filing by lower DD&A and the absence of prior-year impairment and loss on asset sales, which are printed as zero in 2026.
The balance sheet shows cash of $2,915 thousand and total debt of $8,500 thousand at September 30, 2026, with total liquidity of $14,415 thousand. Nine-month investing outflows of $(15,655) thousand were mostly industrial gas property capital expenditures of $(15,170) thousand, funded by equity proceeds of $8,086 thousand and $9,103 thousand from the committed equity facility, plus $6,000 thousand of credit facility borrowings. Unproved industrial gas properties rose to $42,502 thousand from $22,479 thousand. The company says it is in discussions on a larger credit facility and on Section 45Q monetization, and that these are not yet completed.
Operationally, the company reports Phase 1 fabrication underway, in-field gathering and injection lines complete, and first production targeted for spring 2027 under a five-year, 100% take-or-pay helium contract at $285 per Mcf. The Big Rose MRV plan remains in the EPA's final stage, and the company states that timing rests with the agency. Guidance was not provided in the filing, so no comparison to prior outlook is made.
Management, verbatim
The third quarter was about execution, and we are pleased with where the project stands,
Ryan Smith, President and Chief Executive Officer
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.
Ryan Smith, President and Chief Executive Officer
Not in the filing
stated, not guessed- No financial outlook or guidance figures are included in the filing; guidance is null.
- No previous-release outlook was provided, so vs_prior_guidance is empty.
- Prior-quarter (Q2 2026) figures for revenue, production, lease operating expense and net loss are not printed in the filing; only cash G&A carries a Q2 2026 value.
- Percentage year-over-year changes are not printed for most lines (production, oil revenue, net loss, operating loss, and similar); they are left null.
- Nine-month year-over-year percentage changes are not printed.
- Nine-month Adjusted EBITDA is not printed; only the three-month figure is given.
- Helium and carbon management revenue is not reported; the filing describes these as business lines but prints no revenue for them.
- Q3 2026 prior-year environmental remediation figure is not printed (the reconciliation shows no 2025 amount).
- Insurance receivable amount is not recognized; the expected recovery of up to $1.0 million is a company expectation, not a recorded balance.
- Stock price reaction, consensus estimates and analyst expectations are not included in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Big Sky Industrial is an integrated industrial‑gas and carbon‑management company developing the Big Sky Carbon Hub in Montana.
Ticker impact
The 8‑K reports Big Sky Industrial's Q3 2026 results, new helium off‑take contract, progress on Phase 1 construction and discussions on a larger credit facility.
likely modest upside as investors price in the new helium contract and construction progress, but limited by small cash balance.
Primary source filing, fresh numbers and contract terms; no major earnings surprise but clear forward‑looking milestones.
Market effects
Helium and carbon‑capture sector gains visibility; DOE critical‑material designation may boost related stocks.
Montana‑based project highlights U.S. domestic supply chain for helium, modest regional interest.
Limited; primarily affects niche industrial‑gas investors.
Counterpoint
Cash constraints and reliance on future credit may limit upside; execution risk remains high.
Key entities
- companyBig Sky Industrial Inc.
Issuer of the 8‑K, developing the Big Sky Carbon Hub.
- partnerCANUSA EPC
EPC contractor for Phase 1 processing facility.
- regulatorU.S. Department of Energy
Designated helium as a critical material, supporting project rationale.
