Empire Petroleum Announces Results for Second Quarter 2023
- Empire Petroleum grew average daily oil sales volumes by 6% sequentially and 4% year-over-year.
- The company reported sales volumes of 2,135 Boe/d compared to 2,206 Boe/d in Q1 2023.
- Adjusted EBITDA was $0.2 million.
- Empire ended Q2 2023 with $1.6 million of liquidity.
- They continued their development program with capital spending of $3.1 million for H1 2023.
- Empire recently acquired additional working interests in three properties in New Mexico.
- None.
KEY SECOND QUARTER AND RECENT HIGHLIGHTS
-
Grew average daily oil sales volumes by
6% sequentially and4% year-over-year;-
Produced sales volumes of 2,135 barrels of oil equivalent per day (“Boe/d”) (
66% oil,16% natural gas liquids (“NGLs”) and18% natural gas) compared to 2,206 Boe/d (61% oil,20% NGLs, and19% natural gas) for the first quarter of 2023. Sales volumes for the second quarter of 2022 were 2,158 Boe/d (63% oil,19% NGLs, and18% natural gas);
-
Produced sales volumes of 2,135 barrels of oil equivalent per day (“Boe/d”) (
-
Reported revenue of
, a net loss of$9.7 million , or$2.5 million per diluted share, and an Adjusted Net Loss1 of$0.11 , or$2.4 million per diluted share;$0.11 -
Generated Adjusted EBITDA1 of
;$0.2 million -
Ended the second quarter of 2023 with
of liquidity;$1.6 million -
Continued its targeted development program that began in 2022, with capital spending of
for the first half of 2023 reflecting recompletion and other well activities across Empire’s portfolio of assets and sidetrack drilling projects in$3.1 million North Dakota ; and -
Recently announced that on August 9, 2023, the Company and an indirect wholly-owned subsidiary of Energy Evolution Master Fund, Ltd. – Empire’s largest shareholder – had collectively acquired additional working interests in the Company’s three properties located in
Lea County, New Mexico , including Eunice Monument South Unit A, Eunice Monument South Unit B, and Arrowhead Grayburg Unit.
- Adjusted Net Income (Loss), EBITDA 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.
MANAGEMENT COMMENTARY
Mike Morrisett, President and Chief Executive Officer of Empire, commented, “While commodity prices were depressed in the second quarter, we have been pleased to see a material improvement in pricing during the third quarter. Our second quarter oil production began to demonstrate the effects of our development campaign that we began in the latter part of 2022 on our
Mr. Morrisett concluded, “Our ongoing success is a direct result of the efforts we have undertaken over the past year to expand our knowledge of the assets we acquired over the past three years. Central to this has been the hiring of key professionals that provide best-in-class technical and management experience. The more we learn about the assets in our portfolio, the more we like them. We look forward to keeping the investment community apprised of our progress as we kick off the most significant development program in the history of the Company.”
FINANCIAL AND OPERATIONAL RESULTS FOR SECOND QUARTER 2023
|
|
|
Q2 2023 |
|
|
Q1 2023 |
|
|
% Change Q2 2023 vs. Q1 2023 |
|
|
Q2 2022 |
|
|
% Change Q2 2023 vs. Q2 2022 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (Boe/d) |
|
|
|
|
2,135 |
|
|
|
2,206 |
|
|
|
(3 |
%) |
|
|
2,158 |
|
|
|
(1 |
%) |
Net sales (Boe) |
|
|
|
|
194,306 |
|
|
|
198,549 |
|
|
|
(2 |
%) |
|
|
196,412 |
|
|
|
(1 |
%) |
Realized price - all products ($/Boe) |
|
|
|
$ |
50.22 |
|
|
$ |
50.87 |
|
|
|
(1 |
%) |
|
$ |
79.90 |
|
|
|
(37 |
%) |
Revenue ($M) |
|
|
|
$ |
9,710 |
|
|
$ |
10,052 |
|
|
|
(3 |
%) |
|
$ |
15,693 |
|
|
|
(38 |
%) |
Net income (loss) ($M) |
|
|
|
$ |
(2,464) |
|
|
$ |
(2,460) |
|
|
|
-- |
$ |
5,534 |
|
|
|
NM |
|||
Adjusted Net Income (Loss) ($M) |
|
|
|
$ |
(2,398) |
|
|
$ |
(1,858) |
|
|
|
(29 |
%) |
|
$ |
5,920 |
|
|
|
NM |
|
Adjusted EBITDA ($M) |
|
|
|
$ |
171 |
|
|
$ |
228 |
|
|
|
(25 |
%) |
|
$ |
7,362 |
|
|
|
(98 |
%) |
NM – Not meaningful due to a change in signs. |
Net sales were 2,135 Boe/d, including 1,411 barrels of oil per day; 337 barrels of NGLs per day, and 2,322 thousand cubic feet per day (“Mcf/d”), or 387 Boe/d, of natural gas. This is compared to net sales for the first quarter of 2023 of 2,206 Boe/d, including 1,336 barrels of oil per day; 442 barrels of NGLs per day, and 2,569 thousand cubic feet per day (“Mcf/d”), or 428 Boe/d, of natural gas. Contributing to the sequential increase in oil sales volumes was increased production from Empire’s assets in
Empire reported
Lease operating expenses were
Production and ad valorem taxes were
General and administrative (“G&A”) expense, excluding non-cash share-based compensation expense, was
Empire recorded a net loss of
Adjusted EBITDA was
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For the three months and six months ended June 30, 2023, the Company invested approximately
Total liquidity at the end of the second quarter of 2023 was
ABOUT EMPIRE PETROLEUM
Empire Petroleum Corporation is a publicly traded,
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, 2022, 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, 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 | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
Revenue: | |||||||||||||||||||
Oil Sales | $ |
9,147,611 |
|
$ |
8,938,715 |
|
$ |
13,329,366 |
|
$ |
18,086,326 |
|
$ |
23,745,788 |
|
||||
Gas Sales (1) |
|
248,686 |
|
|
656,035 |
|
|
1,321,896 |
|
|
904,721 |
|
|
2,205,798 |
|
||||
Natural Gas Liquids ("NGLs") Sales (1) |
|
362,181 |
|
|
504,954 |
|
|
1,041,136 |
|
|
867,135 |
|
|
2,256,630 |
|
||||
Total Product Revenues |
|
9,758,478 |
|
|
10,099,704 |
|
|
15,692,398 |
|
|
19,858,182 |
|
|
28,208,216 |
|
||||
Other |
|
18,361 |
|
|
19,364 |
|
|
24,913 |
|
|
37,725 |
|
|
48,956 |
|
||||
Gain (Loss) on Derivatives |
|
(66,657 |
) |
|
(66,823 |
) |
|
(23,893 |
) |
|
(133,480 |
) |
|
(136,214 |
) |
||||
Total Revenue |
|
9,710,182 |
|
|
10,052,245 |
|
|
15,693,418 |
|
|
19,762,427 |
|
|
28,120,958 |
|
||||
Costs and Expenses: | |||||||||||||||||||
Lease Operating Expense |
|
7,099,000 |
|
|
6,520,163 |
|
|
4,656,901 |
|
|
13,619,163 |
|
|
9,229,302 |
|
||||
Production and Ad Valorem Taxes |
|
721,275 |
|
|
758,114 |
|
|
1,137,841 |
|
|
1,479,389 |
|
|
2,039,079 |
|
||||
Depletion, Depreciation & Amortization |
|
711,042 |
|
|
622,489 |
|
|
455,799 |
|
|
1,333,531 |
|
|
890,245 |
|
||||
Accretion of Asset Retirement Obligation |
|
405,361 |
|
|
401,275 |
|
|
336,488 |
|
|
806,636 |
|
|
666,488 |
|
||||
General and Administrative Expense: | |||||||||||||||||||
General and Administrative |
|
1,894,204 |
|
|
3,023,279 |
|
|
2,795,548 |
|
|
4,917,483 |
|
|
4,874,650 |
|
||||
Stock-Based Compensation |
|
1,180,806 |
|
|
949,639 |
|
|
486,904 |
|
|
2,130,445 |
|
|
863,182 |
|
||||
Total General and Administrative Expense |
|
3,075,010 |
|
|
3,972,918 |
|
|
3,282,452 |
|
|
7,047,928 |
|
|
5,737,832 |
|
||||
Total Cost and Expenses |
|
12,011,688 |
|
|
12,274,959 |
|
|
9,869,481 |
|
|
24,286,647 |
|
|
18,562,946 |
|
||||
Operating Income (Loss) |
|
(2,301,506 |
) |
|
(2,222,714 |
) |
|
5,823,937 |
|
|
(4,524,220 |
) |
|
9,558,012 |
|
||||
Other Income and (Expense): | |||||||||||||||||||
Interest Expense |
|
(184,887 |
) |
|
(237,299 |
) |
|
(111,785 |
) |
|
(422,186 |
) |
|
(222,433 |
) |
||||
Other Income (Expense) |
|
21,484 |
|
|
422 |
|
|
(177,872 |
) |
|
21,906 |
|
|
(177,872 |
) |
||||
Income (Loss) before Taxes |
|
(2,464,909 |
) |
|
(2,459,591 |
) |
|
5,534,280 |
|
|
(4,924,500 |
) |
|
9,157,707 |
|
||||
Income Tax (Provision) Benefit |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
Net Income (Loss) | $ |
(2,464,909 |
) |
$ |
(2,459,591 |
) |
$ |
5,534,280 |
|
$ |
(4,924,500 |
) |
$ |
9,157,707 |
|
||||
Net Income (Loss) per Common Share: | |||||||||||||||||||
Basic | $ |
(0.11 |
) |
$ |
(0.11 |
) |
$ |
0.27 |
|
$ |
(0.22 |
) |
$ |
0.45 |
|
||||
Diluted | $ |
(0.11 |
) |
$ |
(0.11 |
) |
$ |
0.24 |
|
$ |
(0.22 |
) |
$ |
0.41 |
|
||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||||||||||
Basic |
|
22,105,704 |
|
|
22,096,796 |
|
|
20,424,970 |
|
|
22,101,264 |
|
|
20,145,955 |
|
||||
Diluted |
|
22,105,704 |
|
|
22,096,796 |
|
|
23,294,723 |
|
|
22,101,264 |
|
|
22,233,826 |
|
||||
(1) Presentation for the three and six months ended June 30, 2022 reflects reclassification of gathering and processing costs from lease operating expense, which is consistent with the presentation of results for the three and six months ended June 30, 2023 and three months ended March 31, 2023. |
EMPIRE PETROLEUM CORPORATION | ||||||||||||||||
Condensed Operating Data | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||
Net Production Volumes: | ||||||||||||||||
Oil (Bbl) |
|
128,413 |
|
120,257 |
|
123,167 |
|
248,670 |
|
237,422 |
||||||
Natural gas (Mcf) |
|
211,293 |
|
231,218 |
|
208,363 |
|
442,511 |
|
422,308 |
||||||
Natural gas liquids (Bbl) |
|
30,678 |
|
39,756 |
|
38,518 |
|
70,434 |
|
78,670 |
||||||
Total (Boe) |
|
194,306 |
|
198,549 |
|
196,412 |
|
392,856 |
|
386,477 |
||||||
Average daily equivalent sales (Boe/d) |
|
2,135 |
|
2,206 |
|
2,158 |
|
2,170 |
|
2,135 |
||||||
Average Price per Unit: | ||||||||||||||||
Oil ($/Bbl) | $ |
71.24 |
$ |
74.33 |
$ |
108.22 |
$ |
72.73 |
$ |
100.02 |
||||||
Natural gas ($/Mcf) | $ |
1.18 |
$ |
2.84 |
$ |
6.34 |
$ |
2.04 |
$ |
5.22 |
||||||
Natural gas liquids ($/Bbl) | $ |
11.81 |
$ |
12.70 |
$ |
27.03 |
$ |
12.31 |
$ |
28.68 |
||||||
Total ($/Boe) | $ |
50.22 |
$ |
50.87 |
$ |
79.90 |
$ |
50.55 |
$ |
72.99 |
||||||
Operating Costs and Expenses per Boe: | ||||||||||||||||
Lease operating expense | $ |
36.54 |
$ |
32.84 |
$ |
23.71 |
$ |
34.67 |
$ |
23.88 |
||||||
Production and ad valorem taxes | $ |
3.71 |
$ |
3.82 |
$ |
5.79 |
$ |
3.77 |
$ |
5.28 |
||||||
Depreciation, depletion, amortization and accretion | $ |
5.75 |
$ |
5.16 |
$ |
4.03 |
$ |
5.45 |
$ |
4.03 |
||||||
General & administrative expense: | ||||||||||||||||
General & administrative expense | $ |
9.75 |
$ |
15.23 |
$ |
14.23 |
$ |
12.52 |
$ |
12.61 |
||||||
Stock-based compensation | $ |
6.08 |
$ |
4.78 |
$ |
2.48 |
$ |
5.42 |
$ |
2.23 |
||||||
Total general & administrative expense | $ |
15.83 |
$ |
20.01 |
$ |
16.71 |
$ |
17.94 |
$ |
14.85 |
EMPIRE PETROLEUM CORPORATION | |||||||
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
June 30, | December 31, | ||||||
2023 |
2022 |
||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash | $ |
1,294,850 |
|
$ |
11,944,442 |
|
|
Accounts Receivable |
|
7,693,297 |
|
7,780,239 |
|
||
Derivative Instruments |
|
26,511 |
|
|
121,584 |
|
|
Inventory - Oil in Tanks |
|
1,538,429 |
|
1,840,274 |
|
||
Prepaids |
|
1,464,599 |
|
|
1,048,434 |
|
|
Total Current Assets |
|
12,017,686 |
|
|
22,734,973 |
|
|
Property and Equipment: | |||||||
Oil and Natural Gas Properties, Successful Efforts |
|
69,985,772 |
|
|
63,986,339 |
|
|
Less: Accumulated Depreciation, Depletion and Impairment |
|
(21,336,969 |
) |
|
(20,116,696 |
) |
|
Total Oil and Gas Properties, Net |
|
48,648,803 |
|
|
43,869,643 |
|
|
Other Property and Equipment, Net |
|
1,526,558 |
|
|
1,441,529 |
|
|
Total Property and Equipment, Net |
|
50,175,361 |
|
|
45,311,172 |
|
|
Sinking Fund |
|
- |
|
|
2,779,000 |
|
|
Utility and Other Deposits |
|
746,886 |
|
|
719,930 |
|
|
TOTAL ASSETS | $ |
62,939,933 |
|
$ |
71,545,075 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ |
4,158,650 |
|
$ |
5,843,366 |
|
|
Accrued Expenses |
|
5,815,927 |
|
|
9,461,010 |
|
|
Current Portion of Lease Liability |
|
310,422 |
|
|
256,975 |
|
|
Current Portion of Long-Term Debt |
|
2,315,816 |
|
|
2,059,309 |
|
|
Total Current Liabilities |
|
12,600,815 |
|
|
17,620,660 |
|
|
Long-Term Debt |
|
2,994,500 |
|
|
4,063,115 |
|
|
Long-Term Note Payable - PIE |
|
1,060,004 |
|
|
1,076,987 |
|
|
Long Term Lease Liability |
|
513,853 |
|
|
547,692 |
|
|
Asset Retirement Obligations |
|
27,455,066 |
|
|
25,000,740 |
|
|
Total Liabilities |
|
44,624,238 |
|
|
48,309,194 |
|
|
Stockholders' Equity: | |||||||
Series A Preferred Stock - |
|
- |
|
|
- |
|
|
Common Stock - |
|
81,646 |
|
|
81,615 |
|
|
Additional Paid-in Capital |
|
75,307,762 |
|
|
75,303,479 |
|
|
Accumulated Deficit |
|
(57,073,713 |
) |
|
(52,149,213 |
) |
|
Total Stockholders' Equity |
|
18,315,695 |
|
|
23,235,881 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
62,939,933 |
|
$ |
71,545,075 |
|
EMPIRE PETROLEUM CORPORATION | |||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||||
Net Income (Loss) | $ |
(2,464,909 |
) |
$ |
(2,459,591 |
) |
$ |
5,534,280 |
|
$ |
(4,924,500 |
) |
$ |
9,157,707 |
|
||||
Adjustments to Reconcile Net Income (Loss) to Net Cash | |||||||||||||||||||
Provided By Operating Activities: | |||||||||||||||||||
Stock Compensation |
|
1,180,806 |
|
|
949,639 |
|
|
486,903 |
|
|
2,130,445 |
|
|
863,187 |
|
||||
Amortization of Right of Use Assets |
|
87,560 |
|
|
76,225 |
|
|
50,901 |
|
|
163,785 |
|
|
90,607 |
|
||||
Depreciation, Depletion and Amortization |
|
711,042 |
|
|
622,489 |
|
|
455,799 |
|
|
1,333,531 |
|
|
890,245 |
|
||||
Accretion of Asset Retirement Obligation |
|
405,361 |
|
|
401,275 |
|
|
336,488 |
|
|
806,636 |
|
|
666,488 |
|
||||
(Gain) Loss on Derivatives |
|
66,657 |
|
|
66,823 |
|
|
23,893 |
|
|
133,480 |
|
|
136,214 |
|
||||
Settlement on or Purchases of Derivative Instruments |
|
- |
|
|
(41,187 |
) |
|
(77,631 |
) |
|
(41,187 |
) |
|
(160,891 |
) |
||||
Change in Operating Assets and Liabilities: | |||||||||||||||||||
Accounts Receivable |
|
(1,189,280 |
) |
|
(849,909 |
) |
|
(355,618 |
) |
|
(2,039,189 |
) |
|
(1,113,084 |
) |
||||
Inventory, Oil in Tanks |
|
155,057 |
|
|
(420,859 |
) |
|
(216,911 |
) |
|
(265,802 |
) |
|
(154,709 |
) |
||||
Prepaids, Current |
|
618,737 |
|
|
89,812 |
|
|
2,586 |
|
|
708,549 |
|
|
139,596 |
|
||||
Other Long Term Assets and Liabilities |
|
(436,523 |
) |
|
(213,611 |
) |
|
(156,211 |
) |
|
(650,134 |
) |
|
(156,211 |
) |
||||
Accounts Payable |
|
(1,587,886 |
) |
|
(110,053 |
) |
|
649,861 |
|
|
(1,697,939 |
) |
|
(1,004,576 |
) |
||||
Accrued Expenses |
|
(464,538 |
) |
|
(3,177,767 |
) |
|
1,249,044 |
|
|
(3,642,305 |
) |
|
1,689,515 |
|
||||
Net Cash Provided By Operating Activities |
|
(2,917,916 |
) |
|
(5,066,714 |
) |
|
7,983,384 |
|
|
(7,984,630 |
) |
|
11,044,088 |
|
||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Acquisition of Oil and Natural Gas Properties |
|
- |
|
|
- |
|
|
(2,205,000 |
) |
|
- |
|
|
(2,205,000 |
) |
||||
Deposit for Acquisition of Oil ad Natural Gas Properties |
|
(670,000 |
) |
|
- |
|
|
(670,000 |
) |
|
- |
|
|||||||
Additions to Oil and Natural Gas Properties |
|
(917,843 |
) |
|
(2,210,004 |
) |
|
(802,225 |
) |
|
(3,127,847 |
) |
|
(1,226,876 |
) |
||||
Purchase of Other Fixed Assets |
|
(125,866 |
) |
|
(27,170 |
) |
|
(109,578 |
) |
|
(153,036 |
) |
|
(118,608 |
) |
||||
Cash Paid for Right of Use Assets |
|
(117,560 |
) |
|
(86,545 |
) |
|
(48,402 |
) |
|
(204,105 |
) |
|
(91,235 |
) |
||||
Sinking Fund Deposit |
|
- |
|
|
2,779,000 |
|
|
(160,000 |
) |
|
2,779,000 |
|
|
(640,000 |
) |
||||
Net Cash Used In Investing Activities |
|
(1,831,269 |
) |
|
455,281 |
|
|
(3,325,205 |
) |
|
(1,375,988 |
) |
|
(4,281,719 |
) |
||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Principal Payments of Debt |
|
(719,838 |
) |
|
(569,136 |
) |
|
(462,436 |
) |
|
(1,288,974 |
) |
|
(922,388 |
) |
||||
Proceeds from Option and Warrant Exercise |
|
- |
|
|
- |
|
|
2,887,183 |
|
|
- |
|
|
2,984,683 |
|
||||
Net Cash Provided By (Used In) Financing Activities |
|
(719,838 |
) |
|
(569,136 |
) |
|
2,424,747 |
|
|
(1,288,974 |
) |
|
2,062,295 |
|
||||
Net Change in Cash |
|
(5,469,023 |
) |
|
(5,180,569 |
) |
|
7,082,926 |
|
|
(10,649,592 |
) |
|
8,824,664 |
|
||||
Cash - Beginning of Period |
|
6,763,873 |
|
|
11,944,442 |
|
|
5,353,609 |
|
|
11,944,442 |
|
|
3,611,871 |
|
||||
Cash - End of Period | $ |
1,294,850 |
|
$ |
6,763,873 |
|
$ |
12,436,535 |
|
$ |
1,294,850 |
|
$ |
12,436,535 |
|
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
ADJUSTED NET INCOME | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||||
Net Income (Loss) | $ |
(2,464,909 |
) |
$ |
(2,459,591 |
) |
$ |
5,534,280 |
|
$ |
(4,924,500 |
) |
$ |
9,157,707 |
|
|||||
Adjusted for: | ||||||||||||||||||||
(Gain) loss on derivatives |
|
66,657 |
|
|
66,823 |
|
|
23,893 |
|
|
133,480 |
|
|
136,214 |
|
|||||
Settlement on or purchases of derivative instruments |
|
- |
|
|
(41,187 |
) |
|
(77,631 |
) |
|
(41,187 |
) |
|
(160,891 |
) |
|||||
Stock-based compensation expense related to CEO separation |
|
- |
|
|
201,453 |
|
|
- |
|
|
201,453 |
|
|
- |
|
|||||
CEO severance (including employer taxes) |
|
- |
|
|
374,820 |
|
|
- |
|
|
374,820 |
|
|
- |
|
|||||
Settlement and fees related to |
|
- |
|
|
- |
|
|
439,318 |
|
|
- |
|
|
1,089,318 |
|
|||||
Adjusted Net Income (Loss) | $ |
(2,398,252 |
) |
$ |
(1,857,682 |
) |
$ |
5,919,860 |
|
$ |
(4,255,934 |
) |
$ |
10,222,348 |
|
|||||
Diluted Weighted Average Shares Outstanding |
|
22,105,704 |
|
|
22,096,796 |
|
|
23,294,723 |
|
|
22,101,264 |
|
|
22,233,826 |
|
|||||
Adjusted Net Income (Loss) Per Share | $ |
(0.11 |
) |
$ |
(0.08 |
) |
$ |
0.25 |
|
$ |
(0.19 |
) |
$ |
0.46 |
|
The Company defines Adjusted EBITDA as net income (loss) plus net interest expense, depreciation, depletion and amortization (“DD&A”), accretion, amortization of right of use assets and other non-cash items. 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, 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.
EBITDA & ADJUSTED EBITDA | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Net Income (Loss) | $ |
(2,464,909 |
) |
$ |
(2,459,591 |
) |
$ |
5,534,280 |
|
$ |
(4,924,500 |
) |
$ |
9,157,707 |
|
|||||
Add Back: | ||||||||||||||||||||
Interest expense |
|
184,887 |
|
|
237,299 |
|
|
111,785 |
|
|
422,186 |
|
|
222,433 |
|
|||||
DD&A |
|
711,042 |
|
|
622,489 |
|
|
455,799 |
|
|
1,333,531 |
|
|
890,245 |
|
|||||
Accretion |
|
405,361 |
|
|
401,275 |
|
|
336,488 |
|
|
806,636 |
|
|
666,488 |
|
|||||
Amortization of right of use assets |
|
87,560 |
|
|
76,225 |
|
|
50,901 |
|
|
163,785 |
|
|
90,607 |
|
|||||
EBITDA | $ |
(1,076,059 |
) |
$ |
(1,122,303 |
) |
$ |
6,489,253 |
|
$ |
(2,198,362 |
) |
# | $ |
11,027,480 |
|
||||
Consideration of noncash items: | ||||||||||||||||||||
Stock compensation and issuances |
|
1,180,806 |
|
|
949,639 |
|
|
486,903 |
|
|
2,130,445 |
|
|
863,182 |
|
|||||
(Gain) loss on derivatives |
|
66,657 |
|
|
66,823 |
|
|
23,893 |
|
|
133,480 |
|
|
136,214 |
|
|||||
Settlement on or purchases of derivative instruments |
|
- |
|
|
(41,187 |
) |
|
(77,631 |
) |
|
(41,187 |
) |
|
(160,891 |
) |
|||||
CEO severance (including employer taxes) |
|
- |
|
|
374,820 |
|
|
- |
|
|
374,820 |
|
|
- |
|
|||||
Settlement and fees related to |
|
- |
|
|
- |
|
|
439,318 |
|
|
- |
|
|
1,089,318 |
|
|||||
Adjusted EBITDA | $ |
171,404 |
|
$ |
227,792 |
|
$ |
7,361,736 |
|
$ |
399,196 |
|
$ |
12,955,303 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230814427101/en/
Empire Petroleum Corporation:
Mike Morrisett, President & CEO
539-444-8002
info@empirepetrocorp.com
Investor Relations:
Al Petrie Advisors
Wes Harris, Partner
281-740-1334
wes@alpetrie.com
Source: Empire Petroleum
FAQ
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