Houston American Energy Corp. (HUSA): History, Ownership, Mission, How It Works & Makes Money

How does Houston American Energy Corp., an independent contender in the complex energy sector, pursue growth and value creation? Focused primarily on the exploration, development, and production of domestic oil and gas reserves, particularly within the resource-rich Permian Basin, the company reported total revenues around $2.1 million for the nine months ended September 30, 2024, reflecting its ongoing operational activities amidst market fluctuations. Are you wondering what strategic choices shape its asset base and how exactly this small-cap explorer translates geological potential into shareholder value? Understanding the company's journey, ownership structure, and revenue streams provides valuable context for assessing its position and prospects within the competitive North American energy market.

Houston American Energy Corp. (HUSA) History

Houston American Energy Corp.'s Founding Timeline

Year established

Houston American Energy Corp. was incorporated in Delaware on April 2, 2001.

Original location

The company established its principal executive offices in Houston, Texas, leveraging the city's status as a major hub for the oil and gas industry.

Founding team members

While specific individual founders are often part of the early incorporation documents, John F. Terwilliger served as Chairman, President, and CEO during the company's formative years and initial public offering, guiding its early strategy.

Initial capital/funding

The company initially raised capital through private placements. It subsequently went public, completing its Initial Public Offering (IPO) in 2003, which provided significant growth capital to pursue its exploration and development strategy.

Houston American Energy Corp.'s Evolution Milestones

Houston American Energy Corp.'s Transformative Moments

Entering the Colombian Market

The move into Colombia represented a significant early attempt at diversification. While presenting opportunities, it also introduced geopolitical risks and operational complexities different from the domestic US market. This phase shaped the company's understanding of international E&P ventures.

Strategic Pivot to the Permian Basin

Recognizing the immense potential unlocked by horizontal drilling and hydraulic fracturing, the decision to focus resources on the Permian Basin around 2012-2014 was crucial. This shift aligned the company with one of the world's most economic oil plays, fundamentally altering its asset profile and long-term potential, though exposing it heavily to Permian differentials and activity levels.

Adapting to Oil Price Crashes

Surviving the severe oil price downturns, particularly in 2014-2016 and 2020, required significant financial discipline and strategic adjustments. Decisions around asset sales, capital expenditure cuts, and operational efficiencies during these periods were critical for the company's survival and ability to participate in the subsequent recovery. Understanding these adaptations is key when Breaking Down Houston American Energy Corp. (HUSA) Financial Health: Key Insights for Investors.

Transition to Non-Operated Model

Over time, the company increasingly participated in projects as a non-operating working interest partner. This model allows participation in promising wells managed by larger, experienced operators, reducing overhead and direct operational risk, but also limiting control over project timing and execution. This approach became central to its strategy by 2024.

Houston American Energy Corp. (HUSA) Ownership Structure

Houston American Energy Corp. operates as an independent energy company, with its ownership dispersed among various types of shareholders typical for a publicly traded entity. Control is not concentrated in a single entity, reflecting its status on the public markets.

Houston American Energy Corp.'s Current Status

As of the end of 2024, Houston American Energy Corp. is a publicly traded company. Its common stock trades on the NYSE American stock exchange under the ticker symbol HUSA. Being public means its ownership is fragmented across institutional investors, company insiders, and the general public. Understanding who holds significant stakes is crucial for potential investors; Exploring Houston American Energy Corp. (HUSA) Investor Profile: Who’s Buying and Why? offers deeper insights into investor behavior.

Houston American Energy Corp.'s Ownership Breakdown

The distribution of ownership provides a snapshot of stakeholder influence. Based on filings towards the end of 2024, the ownership structure is heavily weighted towards retail investors, which is common for companies of this size in the energy sector.

Note: Percentages are approximate based on publicly available data and filings near the end of fiscal year 2024 and are subject to change.

Houston American Energy Corp.'s Leadership

The company's strategic direction and day-to-day operations are guided by its executive team and board of directors. As of late 2024, the key figures responsible for governance and management include:

• John P. Boylan: Chairman of the Board, Chief Executive Officer, and President
• James J. Knupp: Director
• Stephen Hart: Director

This leadership team brings experience in finance and the energy sector, navigating the company through the volatile landscape of oil and gas exploration and production.

Houston American Energy Corp. (HUSA) Mission and Values

A company's mission and values articulate its core purpose and guiding principles, shaping its strategy and culture beyond pure profit motives. For Houston American Energy Corp., these elements reflect its focus within the demanding energy sector.

Houston American Energy Corp.'s Core Purpose

While not always articulated through formal, widely published statements, the company's actions and strategic direction clearly point towards a specific operational purpose centered on growth within the oil and gas industry.

Official mission statement

Houston American Energy Corp. does not prominently feature a formal, distinct mission statement in its public communications. However, its operational activities consistently demonstrate a core mission focused on the acquisition, exploration, development, and production of crude oil and natural gas reserves, primarily within key U.S. basins like the Permian.

Vision statement

A specific vision statement isn't readily available. Yet, the company's strategic initiatives suggest a vision centered on increasing shareholder value through the successful exploitation of oil and gas properties and the expansion of its asset base through targeted acquisitions and development projects. Understanding their strategic objectives is crucial when Breaking Down Houston American Energy Corp. (HUSA) Financial Health: Key Insights for Investors.

Company slogan

Houston American Energy Corp. does not appear to utilize a specific company slogan in its branding or marketing materials.

Houston American Energy Corp. (HUSA) How It Works

Houston American Energy Corp. operates as an independent oil and gas company focused on acquiring, exploring, developing, and producing properties primarily in the United States. The company primarily generates revenue through the sale of crude oil and natural gas produced from the properties in which it holds non-operated working interests.

Houston American Energy Corp.'s Product/Service Portfolio

Houston American Energy Corp.'s Operational Framework

The company's core operational strategy revolves around participating as a non-operating partner in oil and gas prospects proposed by other, typically larger, exploration and production companies. This involves:

• Acquiring minority working interests in drilling projects, primarily located in established basins like the Permian.
• Contributing its proportionate share of drilling and completion costs.
• Relying entirely on the operating partner for managing drilling operations, production, and marketing activities.
• Receiving its share of revenue from oil and gas sales, net of operating expenses and royalties.

This non-operator model means HUSA avoids the significant costs and personnel requirements associated with direct field operations. Revenue generation is directly tied to the production volumes from its portfolio wells and prevailing commodity prices. For the nine months ended September 30, 2024, the company reported revenues of approximately $1.4 million.

Houston American Energy Corp.'s Strategic Advantages

Several factors contribute to the company's approach in the competitive energy sector:

• Non-Operator Focus: This strategy significantly reduces overhead costs, capital expenditures related to operational infrastructure, and direct operational risk. It allows participation across a wider range of prospects than direct operatorship might permit with similar capital.
• Basin Concentration: Focusing investments in prolific areas like the Permian Basin provides access to established infrastructure and potentially lower-risk development opportunities driven by experienced operators.
• Leveraged Expertise: HUSA leverages the geological, engineering, and operational expertise of its operating partners, benefiting from their scale and technical capabilities. Understanding who invests in such a model can be insightful; Exploring Houston American Energy Corp. (HUSA) Investor Profile: Who’s Buying and Why? delves into this aspect.
• Commodity Price Sensitivity: While a risk, the model offers direct exposure to oil and gas price movements, providing potential upside during favorable market conditions without the fixed costs of large-scale operations.

Houston American Energy Corp. (HUSA) How It Makes Money

Houston American Energy Corp. generates revenue primarily through the exploration, development, production, and sale of crude oil and natural gas from properties located in the United States, particularly in the Permian Basin of West Texas and the onshore Gulf Coast region.

Houston American Energy Corp.'s Revenue Breakdown

Based on data for the first nine months of 2024, the company's revenue streams are concentrated in fossil fuels.

Houston American Energy Corp.'s Business Economics

The company operates within the volatile energy sector, meaning its financial health is directly tied to global commodity prices for oil and natural gas. Pricing for its products is based on prevailing market rates, such as West Texas Intermediate (WTI) for crude oil and Henry Hub benchmarks for natural gas, less transportation and quality differentials. Key cost drivers include:

• Lease acquisition costs
• Exploration and drilling expenses
• Lease operating expenses (LOE), including production taxes, labor, maintenance, and materials
• General and administrative (G&A) costs
• Depreciation, depletion, and amortization (DD&A) of oil and gas properties

Profitability hinges on discovering and producing reserves at a cost significantly lower than the market selling price. This involves managing operational efficiencies and navigating the inherent risks of exploration activities. Understanding who invests in companies facing these dynamics can be insightful. Exploring Houston American Energy Corp. (HUSA) Investor Profile: Who’s Buying and Why?

Houston American Energy Corp.'s Financial Performance

Financial performance as of late 2024 reflects the challenges of lower average realized commodity prices compared to prior peak periods. For the nine months ended September 30, 2024, the company reported total revenues of approximately $3.7 million, a decrease from $4.1 million during the same period in 2023. This reduction was primarily driven by lower average selling prices for both oil and natural gas, slightly offset by production changes. The company recorded a net loss of approximately $1.3 million for the first nine months of 2024, compared to a net loss of $1.0 million for the comparable period in 2023. Key metrics like revenue per barrel of oil equivalent (BOE) and lease operating expenses per BOE are critical indicators watched closely by management and investors to gauge operational efficiency amidst market price fluctuations.

Houston American Energy Corp. (HUSA) Market Position & Future Outlook

As a non-operating exploration and production company, Houston American Energy Corp. holds a niche position, primarily focused on acquiring minority interests in oil and gas prospects within established basins like the Permian. Its future outlook hinges significantly on the success of drilling programs managed by its partners and the prevailing energy commodity prices, making it sensitive to market volatility.

Competitive Landscape

HUSA operates in a highly fragmented segment alongside numerous small independent E&P companies and competes for capital and attractive drilling prospects. Its non-operator model differentiates it but also creates dependence on partners.

Opportunities & Challenges

Navigating the energy market presents both potential upsides and significant hurdles for the company.

Industry Position

Houston American Energy Corp. functions as a micro-cap participant within the vast U.S. oil and gas exploration and production industry. Its strategy centers on financial participation rather than direct operational control, leveraging the expertise of larger operating companies. This positions it as an investment vehicle exposed to the risks and rewards of specific drilling projects, particularly in the Delaware Basin subset of the Permian. Average net production remained modest, around 70 BOEPD in the third quarter of 2024, underscoring its small scale compared to industry giants and even larger independents. Understanding its financial footing is crucial; Breaking Down Houston American Energy Corp. (HUSA) Financial Health: Key Insights for Investors provides further detail. The company's success is directly tied to its ability to select promising prospects and the operational competence of its partners.