Big Sky Industrial Inc.

Revenue was $2.1 million, essentially flat from a year ago. Cash, general and administrative expense was $1.8 million, down from $2.6 million in the first quarter. Adjusted EBITDA was negative $0.9 million compared with negative $1.3 million a year ago. The company invested $9.6 million of industrial gas capital in the first half, versus $2.5 million in the prior-year period. Management said the April credit amendment doubled the borrowing base to $20 million, fixed the interest margin at 200 basis points, suspended quarterly covenant testing until the first quarter ending March 31, 2027, and extended maturity to May 2029. Total liquidity was $21.5 million at quarter-end and was $16.4 million as of August 4 after a $4 million draw. Forward, management reiterated plant commissioning later this year and first gas / commercial operations in March 2027.

Ryan Smith framed the quarter as the point where the company’s transformation from legacy E&P to integrated industrial gas and carbon management became official, highlighted by the rebrand to Big Sky Industrial and the NASDAQ ticker BSIN. He emphasized that all Phase 1 structural pieces are now in place—engineering, permitting, EPC, funding and offtake—and said the company is now in a construction phase focused on execution. His tone was upbeat and confident, repeatedly stressing that the schedule has not moved and that multiple derisking catalysts are still ahead in 2026.

Mark Zajac focused on the capital structure and said the main financial work this quarter was completing Phase 1 financing. He cited revenue of $2.1 million, cash G&A of $1.8 million, adjusted EBITDA of negative $0.9 million, and first-half industrial gas capital of $9.6 million, which he said is clear evidence the company has moved from development into construction. He also outlined the amended senior secured credit facility: $20 million borrowing base, 200 basis points interest margin, no quarterly covenant testing until Q1 2027, no prepayment penalties, and a May 2029 maturity; he said the current liquidity and financing levers should support Phase 1.

Analysts focused on whether MRV approvals are truly on the critical path and what would happen if approvals slipped. Ryan Smith said even if MRV were delayed, the plant could still start up and monetize helium; the only thing that would be missing would be the 45Q credits, because the wells and sequestration assets are already in place. Questions also centered on Phase 2 sizing and the helium offtake: management said the contract covers 100% of Phase 1 output for 5 years, and Phase 2 sizing will depend mainly on capital, with some additional production and a modest gathering-system expansion likely needed. On 45Q monetization, Smith said the company has begun discussions with buyers and would likely prefer to monetize all of Phase 1’s credit stream upfront if terms are attractive.