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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-18774

SPINDLETOP OIL & GAS CO.

(Exact name of registrant as specified in its charter)

Texas	75-2063001
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

12850 Spurling Rd., Suite 200, Dallas, TX	75230
(Address of principal executive offices)	(Zip Code)

(972) 644-2581
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	SPND	OTC Markets - Pink

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [ X ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [ X ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding twelve months (or for such shorter period that the registrant was required to submit and post such files). Yes [ X ] No [ ]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer [ ]	Accelerated filer [ ]

Non-accelerated filer [ ]	Smaller reporting company [ X ]

	Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes [ ] No [ X ]

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the issuer's classes of common, as of the latest practicable date.

Common Stock, $0.01 par value	6,598,303
(Class)	(Outstanding at May 20, 2026)

DOCUMENTS INCORPORATED BY REFERENCE

None

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES

FORM 10-Q
For the quarter ended March 31, 2026

Index to Consolidated Financial Statements and Schedules



Part I – Financial Information:				Page

	Item 1. – Financial Statements

		Consolidated Balance Sheets		4 - 5
			March 31, 2026 (Unaudited) and December 31, 2025

		Consolidated Statements of Operations (Unaudited)		6
			Three Months Ended March 31, 2026 and 2025

		Consolidated Statements of Changes in Shareholder's Equity (Unaudited)		7
			Three Months Ended March 31, 2026 and 2025

		Consolidated Statements of Cash Flow (Unaudited)		8
			Three Months Ended March 31, 2026 and 2025

		Notes to Consolidated Financial Statements		9

	Item 2. – Management’s Discussion and Analysis of Financial
			Condition and Results of Operations	10

	Item 4. – Controls and Procedures			15

Part II – Other Information:

	Item 5. – Other Information			18

	Item 6. – Exhibits			19

Part I - Financial Information

Item 1. - Financial Statements

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		March 31,			December 31,
		2026			2025
		(Unaudited)
ASSETS

Current Assets
Cash and cash equivalents	$	4,256,000		$	3,641,000
Restricted cash		270,000			270,000
Accounts receivable		2,442,000			2,041,000
Income tax receivable		132,000			132,000
Other short-term investments		752,000			252,000
Total Current Assets		7,852,000			6,336,000

Property and Equipment - at cost
Oil and gas properties (full cost method)		27,659,000			27,568,000
Rental equipment		465,000			465,000
Gas gathering system		115,000			115,000
Other property and equipment		479,000			479,000
		28,718,000			28,627,000
Accumulated depreciation and amortization		(26,996,000	)		(26,916,000	)
Total Property and Equipment		1,722,000			1,711,000

Real Estate Property - at cost
Land		688,000			688,000
Commercial office building		1,925,000			1,925,000
Accumulated depreciation		(1,387,000	)		(1,371,000	)
Total Real Estate Property		1,226,000			1,242,000

Other Assets
Deferred Income Tax Asset		538,000			569,000
Other long-term investments		16,500,000			17,590,000
Other		3,000			3,000
Total Other Assets		17,041,000			18,162,000
Total Assets	$	27,841,000		$	27,451,000

The accompanying notes are an integral part of these statements.

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		March 31,			December 31,
		2026			2025
		(Unaudited)

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts payable and accrued liabilities	$	6,834,000		$	6,740,000
Total Current Liabilities		6,834,000			6,740,000

Noncurrent Liabilities
Other long-term liabilities		538,000			500,000
Asset retirement obligation		5,883,000			5,883,000
Total Noncurrent Liabilities		6,421,000			6,383,000

Total Liabilities		13,255,000			13,123,000

Shareholders' Equity
Common stock, $.01 par value, 100,000,000 shares authorized; 7,677,471 shares issued and 6,598,303 outstanding at March 31, 2026, and 6,598,370 outstanding at December 31, 2025.		77,000			77,000
Additional paid-in capital		943,000			943,000
Treasury stock, at cost		(2,270,000	)		(2,270,000	)
Retained earnings		15,836,000			15,578,000
Total Shareholders' Equity		14,586,000			14,328,000
Total Liabilities and Shareholders' Equity	$	27,841,000		$	27,451,000



The accompanying notes are an integral part of these statements.

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)


	Three Months Ended ,
	March 31 ,		March 31 ,
	2026		2025
Revenues
Oil and gas revenues	$	1,181,000	$	1,052,000
Revenue from lease operations		41,000		43,000
Gas gathering, compression, equipment rental		24,000		18,000
Real estate rental income		64,000		71,000
Other		11,000		11,000
Total Revenues		1,321,000		1,195,000

Expenses
Lease operations		204,000		290,000
Production taxes, gathering and marketing		158,000		141,000
Pipeline and rental operations		3,000		13,000
Real estate operations		27,000		25,000
Depreciation and amortization		96,000		46,000
ARO accretion expense		—		—
General and administrative		712,000		721,000
Total Expenses		1,200,000		1,236,000
Income (Loss) from operations		121,000		(41,000	)

Other Revenue
Interest Income		168,000		208,000
Total Other Revenue and Expense		168,000		208,000
Income before income tax		289,000		167,000

Current income tax provision		—		13,000
Deferred income tax provision		31,000		4,000
Total income tax provision		31,000		17,000
Net Income	$	258,000	$	150,000

Earnings per Share of Common Stock
Earnings per Share of Common Stock Basic and diluted	$	0.04	$	0.02

Weighted Average Shares Outstanding
Weighted Average Shares Outstanding Basic and diluted		6,598,347		6,739,943

The accompanying notes are an integral part of these statements.

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

For the Three Months Ended March 31, 2026 and March 31, 2025

(Unaudited)


	Common Stock Shares		Common Stock Amount		Additional Paid-In Capital	Treasury Stock Shares		Treasury Stock Amount			Retained Earnings

Balance December 31, 2025	7,677,471	$	77,000	$	943,000	1,079,101	$	(2,270,000	)	$	15,578,000

Purchase of 67 shares of Common Stock as Treasury Stock	—		—		—	67		—			—

Net income	—		—		—	—		—			258,000
Balance March 31, 2026	7,677,471	$	77,000	$	943,000	1,079,168	$	(2,270,000	)	$	15,836,000



Balance December 31, 2024	7,677,471	$	77,000	$	943,000	937,528	$	(1,919,000	)	$	17,460,000

Net Income	—		—		—	—		—			150,000
Balance March 31, 2025	7,677,471	$	77,000		943,000	937,528		(1,919,000	)		17,610,000


The accompanying notes are an integral part of these statements.

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


	Three Months Ended
	March 31,			March 31,
	2026			2025
Cash Flows from Operating Activities
Net Income	$	258,000		$	150,000
Reconciliation of net Income to net cash
provided by operating activities
Depreciation and amortization		96,000			46,000
Changes in accounts receivable		(150,000	)		(278,000	)
Changes in income tax receivable		—			13,000
Changes in accounts payable and accrued liabilities		94,000			337,000
Changes in other long-term liabilities		38,000			—
Changes in deferred Income tax asset		31,000			4,000

Net cash provided for operating activities		367,000			272,000

Cash Flows from Investing Activities
Capitalized acquisition, exploration and development		(90,000	)		(176,000	)
Changes in other short-term investments		(752,000	)		—
Changes in other long-term investments		1,090,000			1,025,000

Net cash provided (used) for Investing activities		248,000			849,000

Cash Flows from Financing Activities

Net cash used for financing activities		—			—
Increase in cash, cash equivalents, and restricted cash		615,000			1,121,000

Cash, cash equivalents, and restricted cash at beginning of period		3,911,000			6,742,000
Cash, cash equivalents, and restricted cash at end of period	$	4,526,000		$	7,863,000

The accompanying notes are an integral part of these statements.

SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION AND ORGANIZATION

The accompanying financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by generally accepted accounting principles or those normally made in the Company's annual Form 10-K filing. Accordingly, the reader of this Form 10-Q may wish to refer to the Company's Form 10-K for the year ended December 31, 2025, for further information.

The consolidated financial statements presented herein include the accounts of Spindletop Oil & Gas Co., a Texas corporation ("the Company") and its wholly owned subsidiaries, Prairie Pipeline Co., a Texas corporation and Spindletop Drilling Company, a Texas corporation. All significant inter-company transactions and accounts have been eliminated.

In the opinion of management, the accompanying unaudited interim financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, the results of operations and changes in cash flows of the Company and its consolidated subsidiaries for the interim periods presented. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with generally accepted accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations.

2. COMMON STOCK

Effective June 10, 2025, the Company repurchased 141,573 shares of its common stock from a non-controlling, unaffiliated shareholder for a negotiated purchase price of $351,101 or $2.48 per share. The repurchased shares are held as Treasury Stock.

Effective March 2, 2026, the Company repurchased 67 shares of its common stock from a non-controlling, unaffiliated shareholder for a negotiated purchase price of $166.16 or $2.48 per share. The repurchased shares are held as Treasury Stock.

The Company has not approved nor authorized any standing purchase program for its common stock.

3. CONTINGENCIES

On July 23, 2020, a subsidiary of the Company received notice of a lawsuit filed in Claiborne Parish, Louisiana against the Company’s subsidiary and numerous other oil and gas companies alleging a pollution claim for properties operated by the defendants in Louisiana, and the Company’s subsidiary filed an answer. The Plaintiffs filed a First Supplemental and Amending Petition for Damages on January 21, 2021. This litigation was dismissed without prejudice as to the Company’s subsidiary on the plaintiff’s motion, by Order of Dismissal dated February 20, 2025.

On December 11, 2024, a subsidiary of the Company received notice of a new lawsuit filed in LaFourche Parish, Louisiana against one of the Company’s subsidiaries and numerous other oil and gas companies alleging pollution claims for properties operated by defendants in Louisiana and the Company’s subsidiary filed an answer. The litigation is in the early stages. Management is assessing the lawsuit, and it will have regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of contingencies for litigation. The Company plans to defend its subsidiary vigorously in this matter.

Subsequent Events

The Company has evaluated subsequent events through May 20, 2026, the date on which the financial statements were available to be issued.

Item 2. - Management's Discussion and Analysis of Financial Condition and

Results of Operations

WARNING CONCERNING FORWARD LOOKING STATEMENTS

The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this report.

This Report on Form 10-Q may contain forward-looking statements within the meaning of the federal securities laws, principally, but not only, under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We caution investors that any forward-looking statements in this report, or which management may make orally or in writing from time to time, are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We caution you that while forward-looking statements reflect our good faith beliefs when we make them, they are not guarantees of future performance and are impacted by actual events when they occur after we make such statements. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the factors listed and described at Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K, which investors should review. There have been changes to the risk factors previously described in the Company’s Form 10-K. for the fiscal year ended December 31, 2025 (the “Form 10-K”), including significant global economic and other global factors occurring during 2025 which are described in the following paragraphs.

Prices for oil and natural gas fluctuate widely due to a number of factors that are beyond our control. Declines in oil and natural gas prices significantly affect our financial condition and results of operations. Our revenues, profitability and cash flow are highly dependent upon the prices we realize from the sale of oil, natural gas and NGLs. Historically, the markets for these commodities are very volatile. Prices for oil, natural gas and NGLs can move quickly and fluctuate widely in response to a variety of factors that are beyond our control. These factors include, among others:

the duration and economic and financial impact of epidemics, pandemics or other public health issues;

changes in regional, domestic and foreign supplies of, and consumer and industrial/commercial demand for oil and natural gas., as well as perceptions of supply of, and demand for, oil and natural gas generally;

domestic and international drilling activity;

the price and quantity of foreign imports;

anticipated future prices of oil and natural gas, alternative fuels and other commodities;

the amount of exports from the U.S.;

the level of global and U.S. inventories and reserves;

weather conditions and seasonal trends;

natural disasters and other extraordinary events;

U.S. and worldwide political and economic conditions, including but not limited to, the imposition of tariffs or trade or other economic sanctions, including political instability or armed conflict and related sanctions including, but not limited to, the conflicts in the Middle East, Ukraine and Iran, and political instability in Venezuela;

technological advances affecting energy consumption and energy supply;

domestic and foreign governmental regulations and taxation;

the strength or weakness of the U.S. dollar to other currencies;

the actions of other oil producing and exporting nations, including the Organization of Petroleum Exporting Countries;

the availability, proximity, cost, and capacity of appropriate pipeline infrastructure, treating, transportation, gathering, processing, compression, storage, and refining and export facilities;

the price and availability of, and demand for, competing energy sources, including alternative energy sources;

the effect of worldwide energy conservation measures, alternative fuel requirements and climate change-related legislation, policies, initiatives and developments;

technological advances and consumer and industrial/commercial behavior, preferences and attitudes, in each case affecting energy generation, transmission, storage and consumption;

the nature and extent of governmental regulation, including environmental and other climate change-related regulation, regulation of financial derivative transactions and hedging activities, tax laws, regulations and laws, and regulations with respect to the import and export of oil, and natural gas and related commodities:

inflation and ability to acquire critical material, equipment or services in a timely or cost effective manner;

the level and effect of trading in commodity futures markets, including trading by commodity price speculators and others; and

the availability of capital or level of hedging across the energy industry in the U.S. and internationally.

The above-described factors and the volatility of commodity prices make it difficult to predict oil and natural gas prices in 2026 and thereafter. As a result, there can be no assurance that the prices for oil and/or natural gas will sustain, or increase from, their current levels, nor can there be any assurance that the prices for oil and/or natural gas will not decline. The Company continues to assess and monitor the impact of these factors and consequences on the Company and its operations.

Our cash flows, financial condition and results of operations depend to a great extent on prevailing commodity prices. Accordingly, substantial and extended declines in commodity prices can materially and adversely affect the amount of cash flow we have available for our capital expenditures and operating costs; the terms on which we can access the credit and capital markets; our results of operations; and our financial condition. As a result, the trading price of our common stock may be materially and adversely affected. Lower commodity prices can also reduce the amount of oil and natural gas that we can produce economically. Substantial and extended declines in the prices of these commodities can render uneconomic a portion of our exploration and development projects, resulting in our having to make downward adjustments to our estimated reserves and also possibly shut in or plug and abandon certain wells. In addition, significant prolonged decreases in commodity prices may cause the expected future cash flows from our properties to fall below their respective net book values, which would require us to write down the value of our properties. Such reserve write-downs and asset impairments can materially and adversely affect our results of operations and financial position and, in turn, the trading price of our common stock.

Rising inflation and other uncertainties regarding the global economy, financial environment, and global conflict could lead to an extended national or global economic recession. A slowdown in economic activity caused by a recession would likely reduce national and worldwide demand for oil and natural gas and result in lower commodity prices. Prolonged, substantial decreases in oil and natural gas prices would likely have a material adverse effect on the Company’s business, financial condition, and results of operations, and could further limit the Company's access to liquidity and credit and could hinder its ability to satisfy its capital requirements.

In the past several years, capital and credit markets have experienced volatility and disruption. Given the levels of market volatility and disruption, the availability of funds from those markets may diminish substantially. Further, arising from concerns about the stability of financial markets generally and the solvency of borrowers specifically, the cost of accessing the credit markets has increased as many lenders have raised interest rates, enacted tighter lending standards, or altogether ceased to provide funding to borrowers.

Due to these potential capital and credit market conditions, the Company cannot be certain that funding will be available in amounts or on terms acceptable to the Company. The Company is evaluating whether current cash balances and cash flow from operations alone would be sufficient to provide working capital to fully fund the Company's operations. Accordingly, the Company is evaluating alternatives, such as joint ventures with third parties, or sales of interest in one or more of its properties. Such transactions, if undertaken, could result in a reduction in the Company's operating interests or require the Company to relinquish the right to operate the property. There can be no assurance that any such transactions can be completed or that such transactions will satisfy the Company's operating capital requirements. If the Company is not successful in obtaining sufficient funding or completing an alternative transaction on a timely basis on terms acceptable to the Company, the Company would be required to curtail its expenditures or restructure its operations, and the Company would be unable to continue its exploration, drilling, and recompletion program, any of which would have a material adverse effect on its business, financial condition, and results of operations.

A negative shift in some of the public’s attitudes toward the oil and natural gas industry could adversely affect the Company’s ability to raise debt and equity capital. Certain segments of the investment community have developed negative sentiments about investing in the oil and natural gas industry. Recent equity returns in the sector versus other industry sectors have led to lower oil and natural gas representation in certain key equity market indices. In addition, some investors, including investment advisors and certain wealth funds, pension funds, university endowments and family foundations, have stated policies to disinvest in the oil and natural gas sector based on their social and environmental considerations. Certain other stakeholders have also pressured commercial and investment banks to halt financing oil and natural gas production and related infrastructure projects. Such developments, including environmental, social and governance (“ESG”) activism and initiatives aimed at limiting climate change and reducing air pollution, could result in downward pressure on the stock prices of oil and natural gas companies. The Company’s stock price could be adversely affected by these developments. This may also potentially result in a reduction of available capital funding for potential development projects, impacting the Company’s future financial results.

The Company faces various risks associated with increased negative attitudes toward oil and natural gas exploration and development activities. Opposition to oil and natural gas drilling and development activities has been growing globally and is expanding in the United States. Companies in the oil and natural gas industry are often the target of efforts from both individuals and nongovernmental organizations regarding safety, human rights, climate change, environmental matters, sustainability, and business practices. Anti-development groups are working to reduce access to federal and state government lands and delay or cancel certain operations such as drilling and development along with other activities. Opposition to oil and natural gas activities could materially and adversely impact the Company’s ability to operate our business and raise capital.

There could be adverse legislation which if passed, would significantly curtail our ability to attract investors and raise capital. Proposed changes in the Federal income tax laws which would eliminate or reduce the percentage depletion deduction and the deduction for intangible drilling and development costs for small independent producers will significantly reduce the investment capital available to those in the industry as well as our Company. Lengthening the time to expense seismic costs will also have an adverse effect on our ability to explore and find new reserves.

Other factors that may affect the demand for oil and natural gas, and therefore impact our results, include technological improvements in energy efficiency; seasonal weather patterns; increased competitiveness of, or government policy support for, alternative energy sources; changes in technology that alter fuel choices, such as technological advances in energy storage that make wind and solar more competitive for power generation; changes in consumer preferences for our products, including consumer demand for alternative fueled or electric transportation or alternatives to plastic products; and broad-based changes in personal income levels.

Commodity prices and margins also vary depending on a number of factors affecting supply. For example, increased supply from the development of new oil and gas supply sources and technologies to enhance recovery from existing sources tend to reduce commodity prices to the extent such supply increases are not offset by commensurate growth in demand.

Other sections of this report may also include suggested factors that could adversely affect our business and financial performance. Moreover, we operate in an extremely competitive and rapidly changing environment. New risks may emerge from time to time, and it is not possible for management to predict all such matters; nor can we assess the impact of all such matters on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Investors should also refer to our quarterly reports on Form 10-Q for future periods and current reports on Form 8-K as we file them with the SEC, and to other materials we may furnish to the public from time to time through Forms 8-K or otherwise.

Results of Operations

Three months ended March 31, 2026, compared to the three months ended March 31, 2025

Oil and gas revenues for the first three months of 2026 were $1,181,000, as compared to $1,052,000 for the same period in 2025, an increase of approximately $129,000 or 12.3%.

Oil sales for the first three months of 2026 were approximately $576,000 compared to approximately $533,000 for the first three months of 2025, an increase of approximately $43,000 or 8.1%. Oil sales volumes for the first three months of 2026 were approximately 8,346 bbls, compared to approximately 6,734 bbls during the same period in 2025, an increase of approximately 1,612 bbls, or 23.9%,

Average oil prices received were $64.79 per bbl in the first three months of 2026 compared to $72.85 per bbl in the first three months of 2025, a decrease of approximately $8.06 per bbl or 11.1%.

Natural gas revenues for the first three months of 2026 were $605,000 compared to $519,000 for the same period in 2025, an increase of approximately $86,000 or 16.6%. Natural gas sales volumes for the first three months of 2026 were approximately 144,000 mcf compared to approximately 145,000 mcf during the first three months of 2025, a decrease of approximately 1,000 mcf or 0.7%.

Average gross natural gas prices received were $4.47 per mcf in the first three months of 2026 as compared to $3.58 per mcf in the same time period in 2025, an increase of approximately $0.89 per mcf or 24.7%.

Revenues from lease operations were $41,000 in the first three months of 2026 compared to $43,000 in the first three months of 2025, a decrease of approximately $2,000 or 4.7%. Revenues from lease operations are derived from field supervision charged to operated leases along with operator overhead charged to operated leases.

Revenues from gas gathering, compression and equipment rental for the first three months of 2026 were $24,000 compared to $18,000 for the same period in 2025, an increase of approximately $6,000 or 33.3%. These revenues are derived from gas volumes produced and transported through the Company owned gas gathering systems.

Real estate revenue was approximately $64,000 during the first three months of 2026 compared to $71,000 for the first three months of 2025, a decrease of approximately $7,000, or 9.9%.

Interest income was $168,000 during the first three months of 2026 as compared to $208,000 during the same period in 2025, a decrease of approximately $40,000 or 19.2%. Interest income is due to the Company investing its funds in both long-term and short-term certificates of deposit accounts paying higher rates of interest than those received in money market accounts.

Other revenues for the first three months of 2026 were $11,000 as compared to $11,000 for the same period in 2025.

Lease operating expenses in the first three months of 2026 were approximately $204,000 as compared to $290,000 in the first three months of 2025, a net decrease of approximately $86,000, or 29.7%.

Production taxes, gathering and marketing expenses in the first three months of 2026 were approximately $158,000 as compared to $141,000 for the first three months of 2025, an increase of approximately $17,000 or 12.1%.

Pipeline and rental expenses for the first three months of 2026 were $3,000 compared to $13,000 for the same time period in 2025, a decrease of $10,000 or 76.9%.

Real estate expenses in the first three months of 2026 were approximately $27,000 compared to $25,000 during the same period in 2025, an increase of approximately $2,000 or 8%.

Depreciation, depletion, and amortization expenses for the first three months of 2026 were $96,000 as compared to $46,000 for the same period in 2025, an increase of $50,000, or 108.7%. Amortization of the amount for the full cost pool for the first three months of 2026 was $68,000 compared to $17,000 for the same period of 2025. The Company re-evaluated its proved oil and natural gas reserve quantities as of December 31,2025. This re-evaluated reserve base was reduced for oil and gas reserves that were produced or sold during the first three months of 2026 and adjusted for newly acquired reserves or for changes in estimated production curves and future price assumptions. A year-to-date depletion rate of 6.162% for the three months ended 2026 was applied to the Company’s full cost pool of un-depleted capitalized oil and natural gas properties compared to a year-to-date rate of 2.266% for the same period in 2025.

There was no additional adjustment to Asset Retirement Obligation (“ARO”) expense for the first three months of 2026 as compared to no adjustment for the same period in 2025. The ARO expense is calculated to be the discounted present value of the estimated future cost to plug and abandon the Company’s wells.

General and administrative expenses for the first three months of 2026 were approximately $712,000 as compared to approximately $721,000 for the same period of 2025, a decrease of approximately $9,000 or 1.3%.

Financial Condition and Liquidity

The Company's operating capital needs, as well as its capital spending program are generally funded from cash flow generated by operations. Because future cash flow is subject to several variables, such as the level of production and the sales price of oil and natural gas, the Company can provide no assurance that its operations will provide sufficient cash to maintain current levels of capital spending. Accordingly, the Company may be required to seek additional financing from third parties to fund its exploration and development programs.

Item 4. - Controls and Procedures

(a) As of the end of the period covered by this report, Spindletop Oil & Gas Co. carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Principal Executive Officer and Principal Financial and Accounting Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rule 13a-15 and 15d-15. Based upon the evaluation, the Company's Principal Executive Officer and Principal Financial and Accounting Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by the report.

(b) There have been no changes in the Company's internal controls over financial reporting during the quarter ended March 31, 2026, that have materially affected or are reasonably likely to materially affect the Company's internal controls over financial reporting.

Part II - Other Information

Item 1. – Legal Proceedings

Item 1A. - Risk Factors

The Company's common stock is currently quoted and traded on the OTC Markets Pink market under the symbol "SPND".

Effective July 1, 2025, the Company’s stock was downgraded to the OTC Markets Pink Limited market. Now when someone goes to the OTC Markets website to get a quotation on the Company’s stock, the following is under the Company’s name and trading symbol with the term “Warning!” in bold and red print

Spindletop Oil & Gas Co. (SPND)

Warning! Limited Information

The Pink Limited Market is for broker-dealers to publicly quote securities with limited to no issuer involvement. Pink Limited companies do not certify their compliance with established reporting standards, have limited availability of disclosure or financial information and may not support their U.S. market. These securities are identified with a yield sign to warn investors to proceed with caution.

The downgrade of the Company’s stock to the OTC Markets Pink Limited market with the above Warning section and the cautionary Yield symbol will likely impact an investor’s ability to trade the Company’s stock. The liquidity of our common stock will likely be affected, and purchasers of our common stock could have difficulty selling our common stock since our common stock has been transferred to the OTC Markets Pink Limited market.

There is presently only a limited public market for our common stock, and there is no assurance that a ready public market for our securities will ever develop. It is likely that any market for our common stock will be highly volatile and that the trading volume in such market will be limited and controlled by broker-dealers setting what could be an arbitrary price for the Company’s stock.

The trading price of our common stock also could be subject to fluctuations in response to quarter-to-quarter variations in our operating results, announcements of our drilling results, fluctuations in oil and natural gas prices, and other events or factors. In addition, the United States stock market has from time-to-time experienced extreme price and volume fluctuations that have affected the market price for many companies, and which often have been unrelated to the operating performance of these companies. These broad market fluctuations may adversely affect the market price of our securities.

Item 5. – Other Information

Oklahoma

During the second quarter of 2025, the Company participated in the drilling of a new horizontal well in Major County, OK, targeting Mississippian Lime. The Reutlinger 22-27-1H well was spud on June 6, 2025, and was drilled to an approximate true vertical depth (TVD) of 9,000 ft and a measured depth of 14,575 ft and is currently awaiting casing and completion. The Company owns a 0.0234375 non-operated working interest in the well. The operator started the completion phase during the second quarter of 2026, subsequent to the end of the first quarter.

During the first quarter of 2026, the Company participated in the drilling of a new horizontal well in Custer County, OK targeting the Cherokee Formation. The Edward 30-31-DP #1H was spud on January 4, 2026 and was drilled to a total depth of 21,570 ft. The Company owns an estimated 0.01725466 non-operated working interest in the well. The operator started the completion phase during the second quarter of 2026, subsequent to the end of the first quarter.

Also, during the first quarter of 2026, the Company participated in the drilling of a horizontal well in Custer County, OK targeting the Des Moines Formation. The Aracari 1-12-1XH well was spud on May 2, 2026, subsequent to the end of the first quarter, and is currently in the drilling phase. The Company owns an estimated 0.015674 non-operated working interest in the well.

For all the above wells, the Company cautions that the initial production rates of a newly completed well or newly recompleted well can have steep decline rates and the initial production rates reported above may not be an indicator of the ultimate oil and gas recoveries obtained from the well. Additionally, production rates of well(s) acquired by the Company at the effective date may not be an indicator of the ultimate oil and gas recoveries to be obtained by the well.

Item 6. - Exhibits

The following exhibits are filed herewith or incorporated by reference as indicated.

Exhibit Designation		Exhibit Description

3.1 (a)		Amended Articles of Incorporation of Spindletop Oil & Gas Co. (Incorporated by reference to Exhibit 3.1 to the General Form for Registration of Securities on Form 10, filed with the Commission on August 14, 1990)

3.2		Bylaws of Spindletop Oil & Gas Co. (Incorporated by reference to Exhibit 3.2 to the General Form for Registration of Securities on Form 10, filed with the Commission on August 14, 1990)

31.1 *		Certification pursuant to Rules 13a-14 and 15d under the Securities Exchange Act of 1934.

31.2 *		Certification pursuant to Rules 13a-14 and 15d under the Securities Exchange Act of 1934

32.1 *		Certification pursuant to 18 U.S.C. Section 1350

____________________________

* filed herewith

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SPINDLETOP OIL & GAS CO.
	(Registrant)

Date: May 20, 2026	By:/s/ Chris G. Mazzini
	Chris G. Mazzini
	President, Principal Executive Officer


Date: May 20, 2026	By:/s/ Michelle H. Mazzini
	Michelle H. Mazzini
	Vice President, Secretary


Date: May 20, 2026	By:/s/ Robert E. Corbin
	Robert E. Corbin
	Principal Financial Officer and
	Accounting Manger

SPINDLETOP OIL & GAS CO 10-Q