Empire Petroleum Achieves 22% Oil Production Growth in Q4 2024 Results

03/27/2025 – 06:30 PM

TULSA, Okla.–(BUSINESS WIRE)–
Empire Petroleum (NYSE American: EP) (“Empire” or the “Company”), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today reported operational and financial results for the fourth quarter and full year 2024, including year-end 2024 proved reserves.

FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS

Produced Q4-2024 net production volumes of 2,356 barrels of oil equivalent per day (“Boe/d”) including 1,581 barrels of oil per day (“Bbl/d”);

22% increase of BBl/d comparing Q4-2024 vs. Q4-2023;

Boe/d is comprised of 67% oil, 17% natural gas liquids (“NGLs”), and 16% natural gas;

Since initiating phase one of Enhanced Oil Recovery (“EOR”) efforts in the Starbuck Drilling Program (“Starbuck”) in North Dakota, Empire remains committed to leveraging advanced recovery technologies to optimize production and convert additional wells into injectors;

In Q4-2024, Empire secured approval from the North Dakota Industrial Commission (“NDIC”) to convert two more oil wells into injectors, further advancing its EOR strategy;

Converting three wells lowered the Company’s short-term production, while better positioning Empire for long-term production growth;

In Q4-2024, Empire officially filed a provisional patent application with the United States Patent and Trademark Office in connection with a technology it developed in relation to hydrocarbon vaporization;

The Company continues to advance the final design of the patent in preparation for field deployment;

Initial results from the 30-day peak period showed more than a 700% increase in Starbuck production, achieved using only temporary solutions at that time;

Final fabrication was 30% complete to the target design and Empire expects the intellectual property (“IP”) to be developed over the next 90-120 days;

As Empire continues to expand its technical focus into its Texas region, the Company successfully completed initial infrastructure to begin a new drilling program in Texas, which is expected to begin in 2025;

Year-end 2024 proved reserves were approximately 9.2 million barrels of oil equivalent (“MMBoe”), and the standardized measure of SEC proved reserves discounted at 10% was $98.4 million;

At year-end 2024, future net cash flows without the 10% discount applied was approximately $156.4 million;

Empire successfully completed two rights offerings in 2024, both anchored by its largest shareholders and bolstered by additional shareholder participation, reflecting optimism in Empire’s long-term growth strategy;

In Q1-2024, Empire launched a $20.7 million rights offering (“April Rights Offering”) at $5.00 per share, and due to strong demand, the offering was ultimately oversubscribed upon its conclusion in Q2-2024;

Following this success, the Company completed a second rights offering (“November Rights Offering”) in Q4-2024, raising an additional $10.0 million at $5.05 per share, which was also oversubscribed, underscoring shareholder confidence in the Company’s operational and financial outlook;

In Q4-2024, Empire increased its revolving credit facility with Equity Bank from $10.0 million to $20.0 million, with the expansion immediately providing over $11.0 million in additional capacity, which highlights the strong relationship with Equity Bank and the financial institution’s continued confidence in the Company’s performance and growth trajectory; and

Reported full year 2024 total product revenue of $44.0 million, a net loss of $16.2 million, or ($0.54) per diluted share;

Adjusted EBITDA of $0.7 million for full year 2024 compared to ($2.4) million in 2023;

Loss is primarily related to operational challenges on the initial production optimization associated with the EOR in North Dakota. Empire anticipates resolving these non-recurring production issues in Q2-2025.

2025 OUTLOOK

“As an emerging, agile company, Empire Petroleum has a unique ability to pivot quickly as we receive new data and insights. This flexibility is a tremendous advantage in the dynamic energy sector, allowing us to efficiently allocate capital and resources to the most promising opportunities where they will have the greatest impact,” said Phil Mulacek, Chairman of the Board of Empire. “Each new set of data and developments strengthens our confidence in our forward plan, ensuring the best results for our shareholders.”

Mike Morrisett, President and CEO, added “with assets spanning multiple regions, Empire has the ability to shift our focus based on the latest geological, operational, and technical information. We continue to build on our progress in Starbuck and drive responsible energy development. At the same time, we are actively integrating new information to refine our approach ensuring that we adapt to evolving conditions while optimizing our performance. We are confident this level of adaptability positions us well for long-term success.”

North Dakota – Williston Basin:

Empire anticipates completing the final equipment portion of the first EOR phase, which should allow the Company to increase production to its original levels, and as the technology is implemented, Empire anticipates production growth; and

In February 2025, Empire secured NDIC approval for five new drilling permits for horizontal wells, as the Company continues to advance its growth strategy.

New Mexico – Permian Basin:

From Q4-2024 to Q1-2025, Empire completed 19 workovers in the region, underscoring the Company’s commitment to maximizing well productivity, extending asset life, and optimizing operational output;

The work completed during this period ensures continued production and mitigates a potential decline; and

Empire continues the legal and regulatory actions against a third-party trespassing on the New Mexico water floods.

Texas – East Texas Basin:

Empire will continue to use new technology, including the technical IP developed in other areas, which will allow the Company to expand its capacity for potential new joint ventures benefiting Empire and the companies it partners with.

 

FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL AND OPERATIONAL RESULTS

Q4-24

Q3-24

% Change

Q4-24 vs. Q3-24

Q4-23

% Change

Q4-24 vs. Q4-23

 

 

 

 

 

Net equivalent sales (Boe/d)

2,356

2,460

-4%

2,011

17%

Net oil sales (Bbls/d)

1,581

1,573

1%

1,294

22%

Realized price ($/Boe)

$46.48

$48.12

-3%

$53.50

-13%

Product Revenue ($M)

$10,076

$10,892

-7%

$9,898

2%

Net Loss ($M)

($4,193)

($3,640)

-15%

($4,797)

13%

Adjusted Net Loss ($M)1

($4,193)

($3,829)

-10%

($5,753)

27%

Adjusted EBITDA ($M)1

($260)

($56)

-362%

($2,917)

91%

__________________________________

1 Adjusted net loss and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measure.

Net sales volumes for Q4-2024 were 2,356 Boe/d, including 1,581 barrels of oil per day; 397 barrels of NGLs per day, and 2,268 thousand cubic feet per day (“Mcf/d”) or 378 Boe/d of natural gas. Oil sales volumes for 2024 increased compared to prior year by approximately 93,000 barrels or 19% primarily due to new wells completed in North Dakota during Q3-2024 as well as the acquisition of additional working interest in New Mexico.

Empire reported 2024 total product revenue of $44.0 million versus $40.1 million in 2023. Contributing to the increase were higher oil sales volumes in North Dakota due to the Company’s Starbuck Drilling Program offset by a slight decline in commodity prices.

Lease operating expenses in 2024 decreased to $27.5 million versus $28.6 million for 2023, primarily due to lower workover activities of $5.9 million in 2024 compared to $12.0 million for 2023, partially offset by higher expenses related to an increase in production. Higher workover expense in 2023 was primarily related to work performed on wells in New Mexico to workover wells in the region to enhance and maintain production. These costs are part of the damages Empire seeks to recover under litigation.

Production and ad valorem taxes for 2024 were $3.8 million versus $3.0 million in 2023, as a result of higher product revenues.

Depreciation, Depletion, and Amortization (“DD&A”) and Accretion for 2024 was $11.3 million versus $4.9 million for 2023. The increase in DD&A reflects higher production, the acquisition of additional working interest in New Mexico and the impact of the capitalized costs associated with new drilling activity in North Dakota. Accretion increased slightly due to new drilling activity related to the Starbuck Drilling Program.

General and administrative expenses, excluding share-based compensation expense, was $12.6 million, or $14.23 per Boe in 2024 versus $12.0 million, or $15.71 per Boe in 2023. The slight increase in expenses was primarily due to an increase in salaries and benefits associated with an increase in employee headcount.

Interest expense for 2024 was $1.5 million compared to $1.0 million for 2023, a slight increase due to a higher outstanding balance under the Company’s credit facility offset by lower interest rates.

Empire recorded a net loss of $16.2 million in 2024, or ($0.54) per diluted share, versus a 2023 net loss of $12.5 million, or ($0.55) per diluted share.

Adjusted EBITDA was $0.7 million for 2024 compared to Adjusted EBITDA of ($2.4) million in 2023.

YEAR-END 2024 PROVED RESERVES

The Company’s year-end 2024 SEC proved reserves were 9.2 MMBoe compared to 9.1 MMBoe at year-end 2023. The Company recorded 0.4 MMBoe for acquisitions/revisions and (0.3) MMBoe for extensions/production.

Year-end 2024 SEC proved reserves were comprised of approximately 76% crude oil, 13% NGLs, and 11% natural gas.

Oil (MMBbls)

Gas (MMcf)

NGLs

MBOE

Balance, December 31, 2022

8,826

 

12,937

 

2,262

 

13,244

 

Acquisition of Reserves

36

 

19

 

5

 

44

 

Revisions

(1,625

)

(5,998

)

(960

)

(3,585

)

Extensions

175

 

–

 

–

 

175

 

Production

(488

)

(854

)

(136

)

(766

)

Balance, December 31, 2023

6,924

 

6,104

 

1,171

 

9,112

 

Acquisition of Reserves

198

 

240

 

35

 

274

 

Revisions

(90

)

637

 

159

 

175

 

Extensions

550

 

–

 

–

 

550

 

Production

(581

)

(917

)

(150

)

(884

)

Balance, December 31, 2024

7,001

 

6,064

 

1,215

 

9,227

 

The acquisition of reserves for 2024 and 2023 primarily relate to additional working interests in certain of the Company’s New Mexico properties. The revisions for 2024 and 2023 primarily relate to changes in pricing and the extensions relate to increased volumes from our Starbuck Drilling Program.

The standardized measure of the Company’s reported SEC proved reserves, discounted at 10%, at year-end 2024 was $98.4 million. As of December 31 for each year:

 

2024

 

 

2023

 

Future cash inflows

$

537,303,424

 

$

543,067,776

 

Future production costs

 

(324,214,760

)

 

(350,439,800

)

Future development costs

 

(38,681,208

)

 

(42,475,160

)

Future income tax expense

 

(18,019,644

)

 

(25,201,886

)

Future net cash flows

 

156,387,812

 

 

124,950,930

 

10% annual discount for estimated timing of cash flows

 

(58,022,633

)

 

(41,934,370

)

Standardized measure

$

98,365,179

 

$

83,016,560

 

The 12-month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the properties’ reserves. The prices for the properties’ reserves were as follows:

2024

2023

Oil (Bbl)

$71.66

$75.45

Natural gas (MMBtu)

$0.95

$1.51

NGLs (Bbl)

$24.54

$9.82

 

Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum are as follows as of December 31 for each year:

 

2024

 

 

2023

 

Beginning of year

$

83,016,560

 

$

147,667,413

 

Net change in prices and production costs

 

(5,842,745

)

 

(71,619,375

)

Net change in future development costs

 

220,549

 

 

3,314,220

 

Oil and gas net revenue

 

(9,381,470

)

 

(6,256,366

)

Extensions

 

11,255,319

 

 

4,684,473

 

Acquisition of reserves

 

1,890,863

 

 

526,848

 

Revisions of previous quantity estimates

 

6,675,903

 

 

(55,329,684

)

Net change in taxes

 

4,274,178

 

 

33,317,731

 

Accretion of discount

 

9,746,049

 

 

19,542,907

 

Changes in timing and other

 

(3,490,026

)

 

7,168,393

 

End of year

$

98,365,179

 

$

83,016,560

 

 

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For 2024, Empire invested approximately $42.2 million in capital expenditures, primarily related to the continued drilling and completions activity in North Dakota.

As of December 31, 2024, Empire had approximately $2.3 million in cash on hand and approximately $8.7 million available on its credit facility.

Successful completion of the November Rights Offering in November 2024 with Empire receiving gross proceeds of $10.0 million at $5.05 per share.

UPDATED PRESENTATION

An updated Company presentation will be posted to the Company’s website under the Investor Relations section.

ABOUT EMPIRE PETROLEUM

Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with their existing portfolio of wells. More information about Empire can be found at www.empirepetroleumcorp.com.

SAFE HARBOR STATEMENT

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s estimates, strategy, and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, uncertainties associated with legal and regulatory matters, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.

 

 

EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

 

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

2024

 

2024

 

2023

 

2024

 

2023

Revenue:

Oil Sales

$

9,445,145

$

10,341,280

$

9,106,041

$

41,515,661

$

36,684,494

Gas Sales

 

73,659

 

8,547

 

410,816

 

343,503

 

1,726,754

Natural Gas Liquids (“NGLs”) Sales

 

557,671

 

541,755

 

381,497

 

2,132,666

 

1,660,256

Total Product Revenues

 

10,076,475

 

10,891,582

 

9,898,354

 

43,991,830

 

40,071,504

Other

 

10,766

 

15,269

 

15,705

 

47,348

 

70,480

Gain (Loss) on Derivatives

 

–

 

470,717

 

1,253,708

 

(388,886)

 

(65,693)

Total Revenue

 

10,087,241

 

11,377,568

 

11,167,767

 

43,650,292

 

40,076,291

 

Costs and Expenses:

Lease Operating Expense

 

5,881,309

 

6,733,611

 

7,956,264

 

27,545,028

 

28,625,481

Production and Ad Valorem Taxes

 

886,838

 

984,075

 

772,781

 

3,770,078

 

3,044,411

Depletion, Depreciation & Amortization

 

2,492,783

 

2,596,360

 

1,035,059

 

9,256,254

 

3,096,533

Accretion of Asset Retirement Obligation

 

519,827

 

509,131

 

478,881

 

2,006,756

 

1,756,022

General and Administrative Expense:

General and Administrative

 

3,712,825

 

3,635,917

 

4,536,237

 

12,581,859

 

12,034,184

Stock-Based Compensation

 

519,060

 

335,077

 

855,514

 

2,155,774

 

3,144,751

Total General and Administrative Expense

 

4,231,885

 

3,970,994

 

5,391,751

 

14,737,633

 

15,178,935

 

Total Cost and Expenses

 

14,012,642

 

14,794,171

 

15,634,736

 

57,315,749

 

51,701,382

 

Operating Loss

 

(3,925,401)

 

(3,416,603)

 

(4,466,969)

 

(13,665,457)

 

(11,625,091)

 

Other Income and (Expense):

Interest Expense

 

(268,694)

 

(196,306)

 

(328,445)

 

(1,515,269)

 

(1,000,427)

Other Income (Expense)

 

687

 

(26,705)

 

465

 

(1,017,263)

 

23,721

Loss before Taxes

 

(4,193,408)

 

(3,639,614)

 

(4,794,949)

 

(16,197,989)

 

(12,601,797)

 

Income Tax (Provision) Benefit

 

–

 

–

 

(2,528)

 

–

 

132,192

 

Net Loss

$

(4,193,408)

$

(3,639,614)

$

(4,797,477)

$

(16,197,989)

$

(12,469,605)

 

Net Loss per Common Share:

Basic

$

(0.13)

$

(0.12)

$

(0.20)

$

(0.54)

$

(0.55)

Diluted

$

(0.13)

$

(0.12)

$

(0.20)

$

(0.54)

$

(0.55)

Weighted Average Number of Common Shares Outstanding:

Basic

 

33,034,333

 

31,619,333

 

23,912,271

 

30,064,856

 

22,718,890

Diluted

 

33,034,333

 

31,619,333

 

23,912,271

 

30,064,856

 

22,718,890

 

 

EMPIRE PETROLEUM CORPORATION

Condensed Operating Data

(Unaudited)

 

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

2024

 

2023

 

2023

 

2024

 

2023

 

Net Sales Volumes:

Oil (Bbl)

 

145,442

 

144,674

 

119,022

 

581,159

 

487,869

Natural gas (Mcf)

 

208,698

 

255,195

 

215,855

 

916,955

 

854,274

Natural gas liquids (Bbl)

 

36,556

 

39,137

 

30,011

 

150,091

 

136,013

Total (Boe)

 

216,781

 

226,344

 

185,009

 

884,076

 

766,261

 

Average daily equivalent sales (Boe/d)

 

2,356

 

2,460

 

2,011

 

2,416

 

2,099

 

Average Price per Unit:

Oil ($/Bbl)

$

64.94

$

71.48

$

76.51

$

71.44

$

75.19

Natural gas ($/Mcf)

$

0.35

$

0.03

$

1.90

$

0.37

$

2.02

Natural gas liquids ($/Bbl)

$

15.26

$

13.84

$

12.71

$

14.21

$

12.21

Total ($/Boe)

$

46.48

$

48.12

$

53.50

$

49.76

$

52.29

 

Operating Costs and Expenses per Boe:

Lease operating expense

$

27.13

$

29.75

$

43.00

$

31.16

$

37.36

Production and ad valorem taxes

$

4.09

$

4.35

$

4.18

$

4.26

$

3.97

Depreciation, depletion, amortization and accretion

$

13.90

$

13.72

$

8.18

$

12.74

$

6.33

General & administrative expense:

General & administrative expense (excluding stock-based compensation)

$

17.13

$

16.06

$

24.52

$

14.23

$

15.71

Stock-based compensation

$

2.39

$

1.48

$

4.62

$

2.44

$

4.10

Total general & administrative expense

$

19.52

$

17.54

$

29.14

$

16.67

$

19.81

 

 

EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Balance Sheets

December 31,

 

December 31,

 

2024

 

 

 

2023

 

 

ASSETS

Current Assets:

Cash

$

2,251,464

 

$

7,792,508

 

Accounts Receivable

 

8,154,433

 

 

8,354,636

 

Derivative Instruments

 

–

 

 

406,806

 

Inventory

 

1,304,699

 

 

1,433,454

 

Prepaids

 

640,349

 

 

757,500

 

Total Current Assets

 

12,350,945

 

 

18,744,904

 

 

Property and Equipment:

Oil and Natural Gas Properties, Successful Efforts

 

140,675,399

 

 

93,509,803

 

Less: Accumulated Depreciation, Depletion and Impairment

 

(31,974,184

)

 

(22,996,805

)

Total Oil and Gas Properties, Net

 

108,701,215

 

 

70,512,998

 

Other Property and Equipment, Net

 

1,391,113

 

 

1,883,211

 

Total Property and Equipment, Net

 

110,092,328

 

 

72,396,209

 

 

Other Noncurrent Assets

 

1,425,198

 

 

1,474,503

 

 

TOTAL ASSETS

$

123,868,471

 

$

92,615,616

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts Payable

$

10,452,237

 

$

16,437,219

 

Accrued Expenses

 

10,347,990

 

 

7,075,302

 

Current Portion of Lease Liability

 

400,692

 

 

432,822

 

Current Portion of Note Payable – Related Party

 

–

 

 

1,060,004

 

Current Portion of Long-Term Debt

 

69,552

 

 

44,225

 

Total Current Liabilities

 

21,270,471

 

 

25,049,572

 

 

Long-Term Debt

 

11,266,127

 

 

4,596,775

 

Term Note Payable – Related Party

 

–

 

 

–

 

Long-Term Lease Liability

 

143,689

 

 

544,382

 

Asset Retirement Obligations

 

28,423,000

 

 

27,468,427

 

Total Liabilities

 

61,103,287

 

 

57,659,156

 

 

Stockholders’ Equity:

Series A Preferred Stock – $.001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively

 

–

 

 

–

 

Common Stock – $.001 Par Value, 190,000,000 Shares Authorized, 33,667,132 and 25,503,530 Shares Issued and Outstanding, Respectively

 

93,188

 

 

85,025

 

Additional Paid-in-Capital

 

143,488,803

 

 

99,490,253

 

Accumulated Deficit

 

(80,816,807

)

 

(64,618,818

)

Total Stockholders’ Equity

 

62,765,184

 

 

34,956,460

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

123,868,471

 

$

92,615,616

 

 

 

EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

Cash Flows From Operating Activities:

Net Loss

$

(4,193,408

)

$

(3,639,614

)

$

(4,797,477

)

$

(16,197,989

)

$

(12,469,605

)

 

Adjustments to Reconcile Net Loss to Net Cash Provided By (Used In) Operating Activities:

Stock-Based Compensation

 

519,060

 

 

335,077

 

 

855,513

 

 

2,155,774

 

 

3,144,750

 

Amortization of Right of Use Assets

 

133,199

 

 

135,735

 

 

135,733

 

 

540,401

 

 

423,689

 

Depreciation, Depletion and Amortization

 

2,492,783

 

 

2,596,360

 

 

1,035,059

 

 

9,256,254

 

 

3,096,533

 

Accretion of Asset Retirement Obligation

 

519,827

 

 

509,131

 

 

478,881

 

 

2,006,756

 

 

1,756,022

 

(Gain) Loss on Derivatives

 

–

 

 

(470,717

)

 

(1,253,708

)

 

388,886

 

 

65,693

 

Settlement on or Purchases of Derivative Instruments

 

–

 

 

281,530

 

 

(266,653

)

 

18,200

 

 

(353,695

)

Loss on Financial Derivatives

 

–

 

 

–

 

 

–

 

 

998,000

 

 

–

 

Amortization of Debt Discount on Convertible Notes

 

–

 

 

–

 

 

–

 

 

500,382

 

 

–

 

(Gain) Loss on Extinguishment of Debt

 

–

 

 

26,705

 

 

–

 

 

10,094

 

 

–

 

Change in Operating Assets and Liabilities:

Accounts Receivable

 

(2,004,722

)

 

2,277,310

 

 

(1,128,490

)

 

(357,473

)

 

(2,700,528

)

Inventory, Oil in Tanks

 

194,507

 

 

(48,011

)

 

131,230

 

 

128,755

 

 

(160,827

)

Prepaids, Current

 

(64,009

)

 

211,733

 

 

(165,768

)

 

607,925

 

 

745,648

 

Accounts Payable

 

(7,254,138

)

 

10,419,209

 

 

556,917

 

 

5,019,857

 

 

751,355

 

Accrued Expenses

 

1,073,329

 

 

41,175

 

 

649,185

 

 

2,144,204

 

 

(3,082,928

)

Other Long Term Assets and Liabilities

 

(176,799

)

 

135,172

 

 

(160,691

)

 

(1,063,023

)

 

(1,103,607

)

Net Cash Provided By (Used In) Operating Activities

 

(8,760,371

)

 

12,810,795

 

 

(3,930,269

)

 

6,157,003

 

 

(9,887,500

)

 

Cash Flows from Investing Activities:

Acquisition of Oil and Natural Gas Properties

 

–

 

 

–

 

 

–

 

 

–

 

 

(2,094,419

)

Additions to Oil and Natural Gas Properties

 

(4,460,338

)

 

(18,615,643

)

 

(8,950,338

)

 

(53,219,169

)

 

(14,546,873

)

Purchase of Other Fixed Assets

 

(12,157

)

 

(19,590

)

 

(173,337

)

 

(151,638

)

 

(352,851

)

Cash Paid for Right of Use Assets

 

(122,943

)

 

(125,236

)

 

(124,485

)

 

(498,654

)

 

(552,196

)

Sinking Fund Deposit

 

–

 

 

–

 

 

–

 

 

–

 

 

2,779,000

 

Net Cash Used In Investing Activities

 

(4,595,438

)

 

(18,760,469

)

 

(9,248,160

)

 

(53,869,461

)

 

(14,767,339

)

 

Cash Flows from Financing Activities:

Borrowings on Credit Facility

 

2,700,000

 

 

–

 

 

4,492,484

 

 

6,650,000

 

 

4,492,484

 

Proceeds from Promissory Note – Related Party

 

–

 

 

–

 

 

–

 

 

5,000,000

 

 

–

 

Proceeds from Rights Offerings, net of transaction costs

 

9,972,959

 

 

–

 

 

–

 

 

30,484,488

 

 

–

 

Proceeds from Bridge Loans from Related Parties

 

–

 

 

–

 

 

–

 

 

–

 

 

10,000,000

 

Principal Payments of Debt

 

(215,400

)

 

(158,383

)

 

(4,517,576

)

 

(591,975

)

 

(6,450,774

)

Proceeds from Stock Issuance and Warrant Exercises

 

(2

)

 

–

 

 

9,961,195

 

 

628,901

 

 

12,461,195

 

Net Cash Provided By Financing Activities

 

12,457,557

 

 

(158,383

)

 

9,936,103

 

 

42,171,414

 

 

20,502,905

 

 

Net Change in Cash

 

(898,252

)

 

(6,108,057

)

 

(3,242,326

)

 

(5,541,044

)

 

(4,151,934

)

 

Cash – Beginning of Period

 

3,149,716

 

 

9,257,773

 

 

11,034,834

 

 

7,792,508

 

 

11,944,442

 

 

Cash – End of Period

$

2,251,464

 

$

3,149,716

 

$

7,792,508

 

$

2,251,464

 

$

7,792,508

 

 

Supplemental Cash Flow Information:

Cash Paid for Interest

$

894,282

 

$

650,637

 

 

 

 

 

Empire Petroleum Corporation

Non-GAAP Information

Certain financial information included in Empire’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include “Adjusted Net Loss”, “EBITDA” and “Adjusted EBITDA”. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Adjusted net loss is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

Net Loss

$

(4,193,408

)

$

(3,639,614

)

$

(4,797,477

)

$

(16,197,989

)

$

(12,469,605

)

 

Adjusted for:

(Gain) loss on derivatives

 

–

 

 

(470,717

)

 

(1,253,708

)

 

388,886

 

 

65,693

 

Settlement on or purchases of derivative instruments

 

–

 

 

281,530

 

 

(266,653

)

 

18,200

 

 

(353,695

)

(Gain) loss on financial derivatives

 

–

 

 

–

 

 

–

 

 

998,000

 

 

–

 

CEO severance (including employer taxes)

 

–

 

 

–

 

 

–

 

 

–

 

 

374,820

 

COO severance (including employer taxes)

 

–

 

 

–

 

 

–

 

 

–

 

 

145,319

 

Professional fees for potential financing transactions

 

–

 

 

–

 

 

564,588

 

 

–

 

 

564,588

 

 

Adjusted Net Loss

$

(4,193,408

)

$

(3,828,801

)

$

(5,753,250

)

$

(14,792,903

)

$

(11,672,880

)

 

Diluted Weighted Average Shares Outstanding

 

33,034,333

 

 

31,619,333

 

 

23,912,271

 

 

30,064,856

 

 

22,718,890

 

 

Adjusted Net Loss Per Share

$

(0.13

)

$

(0.12

)

$

(0.24

)

$

(0.49

)

$

(0.51

)

 

 

 

The Company defines adjusted EBITDA as net loss plus net interest expense, depreciation, depletion, and amortization (“DD&A”) and accretion, amortization of right of use assets, income tax (provision) benefit, and other adjustments. Company management believes this presentation is relevant and useful because it helps investors understand Empire’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income (loss), as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, adjusted EBITDA does not represent funds available for discretionary use.

Three Months Ended

 

Year Ended

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

Net Loss

$

(4,193,408

)

$

(3,639,614

)

$

(4,797,477

)

$

(16,197,989

)

$

(12,469,605

)

 

Add Back:

Interest expense

 

268,694

 

 

196,306

 

 

328,445

 

 

1,515,269

 

 

1,000,427

 

DD&A

 

2,492,783

 

 

2,596,360

 

 

1,035,059

 

 

9,256,254

 

 

3,096,533

 

Accretion

 

519,827

 

 

509,131

 

 

478,881

 

 

2,006,756

 

 

1,756,022

 

Amortization of right of use assets

 

133,199

 

 

135,735

 

 

135,733

 

 

540,401

 

 

423,689

 

Income taxes

 

–

 

 

–

 

 

2,528

 

 

–

 

 

(132,192

)

EBITDA

$

(778,905

)

$

(202,082

)

$

(2,816,831

)

$

(2,879,309

)

$

(6,325,126

)

 

Adjustments:

Stock based Compensation

 

519,060

 

 

335,077

 

 

855,514

 

 

2,155,774

 

 

3,144,751

 

(Gain) loss on derivatives

 

–

 

 

(470,717

)

 

(1,253,708

)

 

388,886

 

 

65,693

 

Settlement on or purchases of derivative instruments

 

–

 

 

281,530

 

 

(266,653

)

 

18,200

 

 

(353,695

)

(Gain) Loss on financial derivatives

 

–

 

 

–

 

 

–

 

 

998,000

 

 

–

 

CEO severance (including employer taxes)

 

–

 

 

–

 

 

–

 

 

–

 

 

374,820

 

COO severance (including employer taxes)

 

–

 

 

–

 

 

–

 

 

–

 

 

145,319

 

Professional fees for potential financing transactions

 

–

 

 

–

 

 

564,588

 

 

–

 

 

564,588

 

 

Adjusted EBITDA

$

(259,845

)

$

(56,192

)

$

(2,917,090

)

$

681,551

 

$

(2,383,650

)

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250327909010/en/

Mike Morrisett

President & CEO

539-444-8002

Info@empirepetrocorp.com

Kali Carter

Communications & Investor Relations Manager

918-995-5046

IR@empirepetrocorp.com

Source: Empire Petroleum

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