Friday after market close, Jericho Energy Ventures Inc. (JEV:TSXV, OTC:JROOF) reported Q2 financial results that were softer than our expectations for its Oklahoma O&G joint venture. The JV reported revenue of $2.0M and adjusted EBITDA of $0.2M, declining YoY due to lower commodity prices. We remind readers that while Jericho’s Oklahoma assets form ~40% of our valuation, most of the upside and stock movement is coming from its hydrogen investments which have been performing exceptionally well (see subsequent events section below). We are maintaining our BUY rating and C$0.50/share target price on JEV. Key Highlights • The O&G JV produced 267 bbls/d of crude oil, 512 MMcf/d of natural gas, and 66 bbls/d of NGL compared to our estimates of 290 bbls/d, 680 MMcf/d, and 90 bbls/d respectively. While missing our estimates, the production numbers were objectively solid with crude oil production up 6% YoY. • The JV realized an oil price of $72.18/bbl, natural gas price of $1.86/Mcf, and NGL price of $24.21/bbl. This resulted in total revenue of $2.0M for the JV, declining 39% YoY based on lower commodity prices. • Joint Venture Adjusted EBITDA came in at $248K compared to our estimate of $500K and $1.1M last year. The miss was attributed to the lower than expected production and the lower natural gas prices compared to our model ($2.5/Mcf). • Adjusted EBITDA came in at ($1.2M) compared to our estimate of ($0.9M). Jericho spent $1.3M in G&A for the development of HT, its other hydrogen investments, and general corporate expenses. • Jericho ended the quarter with $1.5M in cash and $3.5M in debt. Outlook Jericho plans to commence drilling in Q3 which will be funded using cash flow as well as through its drilling partners. Management is also expecting drilling activities out of its Blaine County assets this year after selling in 2022 and retaining a royalty. As for its clean energy portfolio, JEV plans to continue evaluating and consolidating innovative technologies with the objective of offering a complete industrial lower emissions solution.