Big Sky Industrial (BSIN) outlined a strategic pivot from oil and gas production to helium and carbon management during a presentation at Sidoti’s Micro-Cap Virtual Conference on August 20, 2026. The Nasdaq-listed company, which currently produces about 200 to 250 barrels of oil per day from its Cut Bank field in Montana, disclosed a 1.3 billion cubic feet helium resource and a near-half-trillion cubic feet CO2 deposit at its adjacent Big Sky Carbon Hub.
The company owns 100% of the reserves, land rights and pipeline infrastructure, positioning it to develop a 50-plus year production life for both commodities. Phase 1 is projected to generate roughly $15 million in annual EBITDA, evenly split between oil and industrial gas operations, with a combined net asset value of about $90 million for the helium and CO2 assets. The oil business alone carries a PV-10 valuation of approximately $20 million, while the company’s market capitalization stands at $75 million.
Big Sky has raised $17 million in common equity in 2024 and secured a $20 million project finance debt facility, leaving it free of warrants or convertible instruments. The firm forecasts net leverage at commercialization of about 1x, a conservative level compared with typical infrastructure or midstream peers that often operate at 5x to 8x leverage ratios.
The company’s carbon management strategy leverages the U.S. 45Q tax credit program, targeting the capture of 125,000 metric tons of CO2 annually. With credits valued at $85 per metric ton escalating 3% annually over 12 years, Big Sky estimates total Phase 1 credit value at about $130 million. Monetization is expected at a 6% to 7% discount, generating $70 million to $80 million in non-dilutive capital. The broader 45Q market is estimated at $50 billion to $60 billion annually.
Operational progress includes a processing plant about two-thirds complete, with wells drilled, gathering systems installed and long-lead items procured. A helium offtake agreement was signed in early 2024 with a Fortune 100 industrial gas company under 100% take-or-pay terms. The base price is set at $285 per Mcf, escalating with CPI over five years, with transportation and liquefaction costs absorbed by the counterparty. The company aims to secure its monitoring, reporting and verification permit by year-end 2024 and begin first commercial production in the first quarter of 2027.
Looking ahead, Big Sky plans a Phase 2 expansion two to three times the scale of Phase 1, targeting EBITDA multiples of the initial project. The company intends to scale through self-funding and non-dilutive 45Q monetization cycles, aligning its business model with a 10x multiple comparable to public market and M&A benchmarks.
