ALTEX INDUSTRIES INC Annual Report - How They Did This Year

Hey everyone, let's break down how ALTEX INDUSTRIES INC (ALTX) performed in its fiscal year ending September 30, 2025!

What Does ALTEX INDUSTRIES INC Do?

ALTEX is a holding company, which means it primarily owns other companies. In this case, its main business is through its subsidiary, Altex Oil Corporation (AOC). AOC invests in onshore oil and gas properties. ALTEX doesn't actually operate these oil and gas wells themselves. Instead, they own interests in properties that are operated by other companies. This means they rely on those operators for information and day-to-day management. The holding company itself has only one full-time employee.

Production and Reserves: A Look at the Numbers

Oil and Gas Reserves: As of September 30, 2025, ALTEX reported estimated reserves of 2,400 barrels of proved, developed oil from their 4.4% interest in the Glo Field in Wyoming. All their interests are "non-working," meaning they don't directly manage the operations.

Yearly Production: Here's how much oil and gas they produced over the past three years:

• Oil Production:

  • 2025: 300 barrels
  • 2024: 300 barrels
  • 2023: 400 barrels
  • Insight: Oil production remained stable from 2024 to 2025 but was down by 100 barrels (a 25% decrease) compared to 2023.

• Gas Production:

  • 2025: 400 Mcf (thousand cubic feet)
  • 2024: 400 Mcf
  • 2023: 500 Mcf
  • Insight: Gas production held steady from 2024 to 2025 but was down by 100 Mcf (a 20% decrease) from 2023.

Average Prices Received: The prices ALTEX received for its production saw some notable shifts:

• Average Oil Price:

  • 2025: $56.33 per barrel
  • 2024: $73.67 per barrel
  • 2023: $69.76 per barrel
  • Insight: The average oil price received in 2025 dropped by about 23.5% ($17.34 per barrel) compared to 2024.

• Average Gas Price:

  • 2025: $2.79 per Mcf
  • 2024: $2.22 per Mcf
  • 2023: $5.27 per Mcf
  • Insight: Gas prices increased by about 25.7% ($0.57 per Mcf) from 2024. However, they are still lower than the prices seen in 2023.

Production Costs: ALTEX reported $0.00 for average production costs per equivalent barrel for all three years (2023, 2024, and 2025). This is consistent with their non-working interests, where operators handle direct costs.

Stock and Shareholder Information

• Trading: ALTEX's common stock trades on the OTC Pink Limited Market under the symbol ALTX.
• Shareholders: As of November 28, 2025, there were about 3,400 individual shareholders.
• Dividends: The company did not pay any dividends to shareholders in the last two fiscal years.
• Share Buybacks: In September 2025, ALTEX bought back 41,880 of its own shares at an average price of $0.29 per share.
• Shares Outstanding: As of November 28, 2025, there were 11,187,640 shares of common stock outstanding.
• Market Value: The market value of common stock held by non-affiliates was approximately $2.959 million.

Risks and Challenges

• Reliance on Operators: Since ALTEX doesn't operate its properties, it's entirely dependent on the information and performance of the third-party operators. This means they don't have direct control over production or costs, and they must rely on the accuracy of information provided by others.
• Market Prices: Fluctuations in oil and gas prices can significantly impact their revenue and overall financial performance.
• Cybersecurity: The company highlighted that while they use standard defenses, they don't have formal processes to identify cybersecurity risks from third-party service providers. Their president, who handles cybersecurity, doesn't have formal training in this area. A successful cyberattack could lead to delays in SEC filings or financial losses from attacks on bank accounts.

Key Takeaways

• ALTEX operates as a holding company with non-working interests in oil and gas properties, relying on third-party operators.
• Oil and gas production remained stable from 2024 to 2025 but decreased compared to 2023 levels.
• Average oil prices received dropped significantly in 2025, while gas prices increased from 2024 but remained below 2023 levels.
• The company reported $0.00 in production costs, consistent with its non-working interest model.
• No dividends were paid in the last two fiscal years, but the company executed a share buyback in September 2025.
• Key risks include dependence on operators, volatility in market prices, and potential cybersecurity vulnerabilities.