Empire Petroleum Reports Q2 2024 Results and Provides an Update for North Dakota Drilling Program
Empire Petroleum (NYSE American: EP) reported Q2 2024 results and provided an update on its North Dakota drilling program. Key highlights include:
- Q2 2024 net production volumes increased 20% sequentially and 24% year-over-year to 2,638 Boe/d
- Average daily oil sales volumes grew by 23% sequentially and 25% year-over-year
- Total product revenue of $12.8 million, a net loss of $4.4 million, and Adjusted EBITDA of $1.7 million
- Successful completion of the first stage of North Dakota horizontal wells for EOR development
- Significant production increase in the Starbuck field, up ~500% from initial purchase
The company expects further production improvements in North Dakota throughout 2024 and 2025, with plans to shift focus to Permian assets in New Mexico's Lea County in 2025.
Empire Petroleum (NYSE American: EP) ha comunicato i risultati del secondo trimestre 2024 e fornito un aggiornamento sul suo programma di perforazione nel Dakota del Nord. Punti salienti includono:
- I volumi netti di produzione del Q2 2024 sono aumentati del 20% rispetto al trimestre precedente e del 24% rispetto allo stesso periodo dell'anno scorso, raggiungendo 2.638 Boe/giorno.
- I volumi medi giornalieri di vendita di petrolio sono cresciuti del 23% rispetto al trimestre precedente e del 25% anno su anno.
- Il fatturato totale dei prodotti è stato di 12,8 milioni di dollari, con una perdita netta di 4,4 milioni di dollari e un EBITDA rettificato di 1,7 milioni di dollari.
- Completamento riuscito della prima fase di pozzi orizzontali nel Dakota del Nord per lo sviluppo dell'EOR.
- Incremento significativo della produzione nel campo di Starbuck, superiore del ~500% rispetto all'acquisto iniziale.
L'azienda prevede ulteriori miglioramenti della produzione nel Dakota del Nord per tutto il 2024 e il 2025, con l'intenzione di spostare l'attenzione verso gli asset del Permian nella contea di Lea nel New Mexico nel 2025.
Empire Petroleum (NYSE American: EP) informó sobre los resultados del segundo trimestre de 2024 y proporcionó una actualización de su programa de perforación en Dakota del Norte. Los aspectos destacados incluyen:
- Los volúmenes de producción neta del Q2 2024 aumentaron un 20% secuencialmente y un 24% interanual, alcanzando 2,638 Boe/día.
- Los volúmenes diarios promedio de ventas de petróleo crecieron un 23% secuencialmente y un 25% interanual.
- Ingresos totales por productos de $12.8 millones, una pérdida neta de $4.4 millones y un EBITDA ajustado de $1.7 millones.
- Completamiento exitoso de la primera etapa de pozos horizontales en Dakota del Norte para el desarrollo de EOR.
- Aumento significativo de la producción en el campo Starbuck, con un aumento de aproximadamente el 500% desde la compra inicial.
La compañía espera mejoras adicionales en la producción en Dakota del Norte durante 2024 y 2025, con planes de cambiar el enfoque a los activos de Permian en el condado de Lea en Nuevo México en 2025.
엠파이어 석유(Empire Petroleum, NYSE American: EP)는 2024년 2분기 실적을 보고하고 북다코타 시추 프로그램에 대한 업데이트를 제공했습니다. 주요 하이라이트는:
- 2024년 2분기 순생산량이 전분기 대비 20% 증가하고 전년 대비 24% 증가하여 2,638 Boe/일에 도달했습니다.
- 평균 일일 원유 판매량이 전분기 대비 23%, 전년 대비 25% 성장했습니다.
- 제품 총수익은 1,280만 달러, 순손실은 440만 달러, 조정 EBITDA는 170만 달러였습니다.
- EOR 개발을 위한 북다코타 수평 굴착공 첫 단계의 성공적인 완료.
- 스타벅 필드에서의 생산량이 초기 구매 대비 약 500% 증가했습니다.
회사는 2024년과 2025년 동안 북다코타에서의 생산 추가 개선을 기대하고 있으며, 2025년에는 뉴멕시코 리 카운티의 페미안 자산으로 초점을 옮길 계획입니다.
Empire Petroleum (NYSE American: EP) a publié les résultats du deuxième trimestre 2024 et a fourni une mise à jour sur son programme de forage dans le Dakota du Nord. Les faits saillants comprennent:
- Les volumes de production nette du T2 2024 ont augmenté de 20 % par rapport au trimestre précédent et de 24 % par rapport à l'année précédente, atteignant 2 638 Boe/jour.
- Les volumes moyens de vente de pétrole par jour ont augmenté de 23 % par rapport au trimestre précédent et de 25 % par rapport à l'année précédente.
- Le chiffre d'affaires total des produits s'élève à 12,8 millions de dollars, avec une perte nette de 4,4 millions de dollars et un EBITDA ajusté de 1,7 million de dollars.
- Achèvement réussi de la première phase des forages horizontaux dans le Dakota du Nord pour le développement de l'EOR.
- Augmentation significative de la production dans le champ de Starbuck, avec une hausse d'environ 500 % par rapport à l'achat initial.
L'entreprise s'attend à d'autres améliorations de la production dans le Dakota du Nord tout au long de 2024 et 2025, avec des plans pour déplacer son attention vers les actifs de Permian dans le comté de Lea au Nouveau-Mexique en 2025.
Empire Petroleum (NYSE American: EP) hat die Ergebnisse des zweiten Quartals 2024 bekannt gegeben und ein Update zu seinem Bohrprogramm in North Dakota gegeben. Hauptpunkte sind:
- Die Netto-Produktionsmengen im Q2 2024 stiegen im Vergleich zum vorherigen Quartal um 20% und im Vergleich zum Vorjahr um 24% auf 2.638 Boe/Tag.
- Die durchschnittlichen täglichen Verkaufsvolumina von Öl wuchsen sequenziell um 23% und im Jahresvergleich um 25%.
- Gesamte Produktumsätze von 12,8 Millionen US-Dollar, ein Nettoverlust von 4,4 Millionen US-Dollar und ein bereinigtes EBITDA von 1,7 Millionen US-Dollar.
- Erfolgreicher Abschluss der ersten Phase der horizontalen Bohrungen in North Dakota für die EOR-Entwicklung.
- Bedeutender Produktionsanstieg im Starbuck-Feld, mehr als ~500% im Vergleich zum ursprünglichen Kauf.
Das Unternehmen erwartet weitere Produktionssteigerungen in North Dakota bis 2024 und 2025 und plant, 2025 den Fokus auf die Permian-Vorkommen im Lea County in New Mexico zu verlagern.
- Q2 2024 net production volumes increased 20% sequentially and 24% year-over-year to 2,638 Boe/d
- Average daily oil sales volumes grew by 23% sequentially and 25% year-over-year
- Total product revenue increased to $12.8 million, up 31% year-over-year
- Adjusted EBITDA improved to $1.7 million for Q2 2024 compared to $0.2 million in Q2 2023
- Successful completion of the first stage of North Dakota horizontal wells for EOR development
- Significant production increase in the Starbuck field, up ~500% from initial purchase
- Reported a net loss of $4.4 million, or $0.15 per share, for Q2 2024
- Lease operating expenses increased to $7.5 million in Q2 2024 from $7.1 million in Q2 2023
- DD&A increased to $3.2 million in Q2 2024 from $1.1 million in Q2 2023
- Interest expense increased to $0.7 million in Q2 2024 from $0.2 million in Q2 2023
Insights
Empire Petroleum's Q2 2024 results show mixed signals. On the positive side, net production volumes increased by
The company's focus on North Dakota assets seems promising, with significant cost reductions in drilling and potential for production gains. However, the increased capital expenditure of
Empire Petroleum's strategic focus on Enhanced Oil Recovery (EOR) in North Dakota is a smart move in the current oil market. The completion of the first stage of horizontal wells for EOR development and the planned infrastructure completion by Q3 2024 could significantly boost production efficiency. The company's success in reducing drilling costs by
The planned shift of focus to Permian Basin assets in New Mexico's Lea County in 2025 aligns with industry trends, as the Permian remains a highly productive region. However, the company's diverse asset portfolio across five states might stretch resources thin. The ongoing legal and regulatory actions against third parties trespassing on New Mexico water floods highlight the complexities of operating in multiple regions. Empire's ability to balance its development across these assets will be important for long-term success.
SECOND QUARTER 2024 HIGHLIGHTS
-
Q2-2024 net production volumes rose
20% sequentially and24% year-over-year to 2,638 barrels of oil equivalent per day (“Boe/d”);-
Average daily oil sales volumes grew by
23% sequentially and25% year-over-year with largest increase fromNorth Dakota operations -
67% oil,16% natural gas liquids (“NGLs”), and17% natural gas;
-
Average daily oil sales volumes grew by
-
Completion of the first stage of the
North Dakota horizontal wells for Enhanced Oil Recovery (EOR) development in Q2-2024 and the EOR infrastructure to be completed by end of Q3-2024; -
Largest production increase was from the Starbuck field, an increase of ~
500% from initial purchase;-
Increased year-over-year volumes by ~
130% and quarter-over-year volumes by ~45% - Increase does not include the completion of drilling program or effects on production from EOR activities starting at the end of Q3-2024;
-
Increased year-over-year volumes by ~
-
Commenced conformance improvements in Empire’s
New Mexico assets, including an upcoming pilot drilling program; and -
Reported Q2-2024 total product revenue of
$12.8 million $4.4 million $0.15 $2.9 million $0.10 -
Generated Q2-2024 Adjusted EBITDA of
$1.7 million $0.2 million
-
Generated Q2-2024 Adjusted EBITDA of
2024 OUTLOOK
Phil Mulacek, Chairman, commented, “Recent drilling and development data from our
Mike Morrisett, President and CEO, added, “We have made significant strides in
Empire expects
-
100% of the first stage of EOR horizontal wells were completed in Q2-2024 and the first stage of the EOR infrastructure to be completed in Q3-2024; -
Second stage of the EOR program and infrastructure to be completed in 2025-2026;
-
New horizontal laterals will be completed for Starbuck and other fields the Company operates within
North Dakota ;
-
New horizontal laterals will be completed for Starbuck and other fields the Company operates within
- Production anticipated to ramp in second half of 2024 with an additional four wells coming online and EOR injection commencing;
- Drill core data, currently being evaluated, has confirmed new zones of potential development; and
-
3D & 2D processing to enhance infield development on the Company’s Starbuck assets and apply knowledge to other Company assets in order to expand the development footprint;
- Completion of the 3D & 2D seismic survey in May 2024
- Expect data processing and analysis to be completed by end of Q3-2024;
- Continued data and analytics on historical water injection profiles across all injectors in Empire’s waterflood units;
- Started conformance improvements on wells to evaluate the response before implementation on the unit, then a phased in approach;
- Commenced seeing well performance on production;
- Reduced water injection on wells;
- Continued upgrading high potential recompletion opportunities; and
- Continue the legal and regulatory actions against third parties trespassing on the NM water floods.
SECOND QUARTER 2024 FINANCIAL AND OPERATIONAL RESULTS
| Q2-24 | Q1-24 | % Change2 Q2-24 vs. Q1-24 |
Q2-23 | % Change2 Q2-24 vs. Q2-23 |
|
| Net equivalent sales (Boe/d) | 2,638 |
2,207 |
|
2,135 |
|
| Net oil sales (Bbls/d) | 1,761 |
1,437 |
|
1,411 |
|
| Realized price ($/Boe) | 53.26 |
50.96 |
|
50.22 |
|
| Product Revenue ($M) | 12,788 |
10,235 |
|
9,758 |
|
| Net Income (Loss) ($M) | (4,390) |
(3,975) |
- |
(2,465) |
- |
| Adjusted Net Income (Loss) ($M)1 | (2,905) |
(3,866) |
|
(2,398) |
- |
| Adjusted EBITDA ($M)1 | 1,727 |
(729) |
NM |
171 |
NM |
________________________________
1 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.
2 NM: A percentage calculation is not meaningful due to change in signs, a zero-value denominator, or a percentage change greater than 200.
Net sales volumes for Q2-2024 were 2,638 Boe/d, including 1,761 barrels of oil per day; 435 barrels of NGLs per day, and 2,651 thousand cubic feet per day (“Mcf/d”) or 442 Boe/d of natural gas. Quarter-over-quarter net oil sales volumes increase of
Empire reported Q2-2024 total product revenue of
Q2-2024 lease operating expenses increased to
Production and ad valorem taxes for Q2-2024 were
Depreciation, Depletion, Amortization and Accretion (“DD&A”) for Q2-2024 was
General and administrative expenses, excluding share-based compensation expense, were
Interest expense for Q2-2024 was
Empire recorded a Q2-2024 net loss of
Adjusted EBITDA improved to
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For the six months ended June 30, 2024, Empire invested approximately
As of June 30, 2024, Empire had approximately
Empire received gross proceeds of approximately
UPDATED PRESENTATION
An updated Company presentation will be posted by Friday, August 23, to the Company’s website under the Investor Relations section.
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, 2023, 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 | YTD | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Revenue: | |||||||||||||||
| Oil Sales | $ |
12,287,272 |
|
$ |
9,441,964 |
|
$ |
9,147,611 |
|
$ |
21,729,236 |
|
$ |
18,086,326 |
|
| Gas Sales |
|
(115,833 |
) |
|
377,130 |
|
|
248,686 |
|
|
261,297 |
|
|
904,721 |
|
| NGL Sales |
|
617,029 |
|
|
416,211 |
|
|
362,181 |
|
|
1,033,240 |
|
|
867,135 |
|
| Total Product Revenues |
|
12,788,468 |
|
|
10,235,305 |
|
|
9,758,478 |
|
|
23,023,773 |
|
|
19,858,182 |
|
| Other |
|
11,227 |
|
|
10,086 |
|
|
18,361 |
|
|
21,313 |
|
|
37,725 |
|
| Loss on Commodity Derivatives |
|
(1,453 |
) |
|
(858,150 |
) |
|
(66,657 |
) |
|
(859,603 |
) |
|
(133,480 |
) |
| Total Revenue |
|
12,798,242 |
|
|
9,387,241 |
|
|
9,710,182 |
|
|
22,185,483 |
|
|
19,762,427 |
|
| Costs and Expenses: | |||||||||||||||
| Lease Operating Expense |
|
7,542,685 |
|
|
7,387,423 |
|
|
7,099,000 |
|
|
14,930,108 |
|
|
13,619,163 |
|
| Production and Ad Valorem Taxes |
|
1,065,718 |
|
|
833,447 |
|
|
721,275 |
|
|
1,899,165 |
|
|
1,479,389 |
|
| Depletion, Depreciation & Amortization |
|
2,676,981 |
|
|
1,490,130 |
|
|
711,042 |
|
|
4,167,111 |
|
|
1,333,531 |
|
| Accretion of Asset Retirement Obligation |
|
492,449 |
|
|
485,349 |
|
|
405,361 |
|
|
977,798 |
|
|
806,636 |
|
| General and Administrative Expense: | |||||||||||||||
| General and Administrative |
|
2,354,080 |
|
|
2,879,037 |
|
|
1,894,204 |
|
|
5,233,117 |
|
|
4,917,483 |
|
| Stock-Based Compensation |
|
591,635 |
|
|
710,002 |
|
|
1,180,806 |
|
|
1,301,637 |
|
|
2,130,445 |
|
| Total General and Administrative Expense |
|
2,945,715 |
|
|
3,589,039 |
|
|
3,075,010 |
|
|
6,534,754 |
|
|
7,047,928 |
|
| Total Cost and Expenses |
|
14,723,548 |
|
|
13,785,388 |
|
|
12,011,688 |
|
|
28,508,936 |
|
|
24,286,647 |
|
| Operating Income (Loss) |
|
(1,925,306 |
) |
|
(4,398,147 |
) |
|
(2,301,506 |
) |
|
(6,323,453 |
) |
|
(4,524,220 |
) |
| Other Income and (Expense): | |||||||||||||||
| Interest Expense |
|
(735,220 |
) |
|
(315,049 |
) |
|
(184,887 |
) |
|
(1,050,269 |
) |
|
(422,186 |
) |
| Other Income (Expense) |
|
(1,729,245 |
) |
|
738,000 |
|
|
21,484 |
|
|
(991,245 |
) |
|
21,906 |
|
| Income (Loss) before Taxes |
|
(4,389,771 |
) |
|
(3,975,196 |
) |
|
(2,464,909 |
) |
|
(8,364,967 |
) |
|
(4,924,500 |
) |
| Income Tax (Provision) Benefit |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Net Income (Loss) | $ |
(4,389,771 |
) |
$ |
(3,975,196 |
) |
$ |
(2,464,909 |
) |
$ |
(8,364,967 |
) |
$ |
(4,924,500 |
) |
| Net Income (Loss) per Common Share: | |||||||||||||||
| Basic | $ |
(0.15 |
) |
$ |
(0.15 |
) |
$ |
(0.11 |
) |
$ |
(0.30 |
) |
$ |
(0.22 |
) |
| Diluted | $ |
(0.15 |
) |
$ |
(0.15 |
) |
$ |
(0.11 |
) |
$ |
(0.30 |
) |
$ |
(0.22 |
) |
| Weighted Average Number of Common Shares Outstanding: | |||||||||||||||
| Basic |
|
29,839,853 |
|
|
25,688,427 |
|
|
22,105,704 |
|
|
27,752,816 |
|
|
22,101,264 |
|
| Diluted |
|
29,839,853 |
|
|
25,688,427 |
|
|
22,105,704 |
|
|
27,752,816 |
|
|
22,101,264 |
|
| EMPIRE PETROLEUM CORPORATION | |||||||||||
| Condensed Operating Data | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||
| Net Sales Volumes: | |||||||||||
| Oil (Bbl) |
|
160,283 |
|
|
130,760 |
|
128,413 |
|
291,043 |
|
248,670 |
| Natural gas (Mcf) |
|
241,242 |
|
|
211,820 |
|
211,293 |
|
453,063 |
|
442,511 |
| Natural gas liquids (Bbl) |
|
39,612 |
|
|
34,785 |
|
30,678 |
|
74,397 |
|
70,434 |
| Total (Boe) |
|
240,102 |
|
|
200,848 |
|
194,306 |
|
440,951 |
|
392,856 |
| Average daily equivalent sales (Boe/d) |
|
2,638 |
|
|
2,207 |
|
2,135 |
|
2,423 |
|
2,170 |
| Average Price per Unit: | |||||||||||
| Oil ($/Bbl) | $ |
76.66 |
|
$ |
72.21 |
$ |
71.24 |
$ |
74.66 |
$ |
72.73 |
| Natural gas ($/Mcf) | $ |
(0.48 |
) |
$ |
1.78 |
$ |
1.18 |
$ |
0.58 |
$ |
2.04 |
| Natural gas liquids ($/Bbl) | $ |
15.58 |
|
$ |
11.97 |
$ |
11.81 |
$ |
13.89 |
$ |
12.31 |
| Total ($/Boe) | $ |
53.26 |
|
$ |
50.96 |
$ |
50.22 |
$ |
52.21 |
$ |
50.55 |
| Operating Costs and Expenses per Boe: | |||||||||||
| Lease operating expense | $ |
31.41 |
|
$ |
36.78 |
$ |
36.54 |
$ |
33.86 |
$ |
34.67 |
| Production and ad valorem taxes | $ |
4.44 |
|
$ |
4.15 |
$ |
3.71 |
$ |
4.31 |
$ |
3.77 |
| Depreciation, depletion, amortization and accretion | $ |
13.20 |
|
$ |
9.84 |
$ |
5.75 |
$ |
11.67 |
$ |
5.45 |
| General & administrative expense: | |||||||||||
| General & administrative expense | $ |
9.80 |
|
$ |
14.33 |
$ |
9.75 |
$ |
11.87 |
$ |
12.52 |
| Stock-based compensation | $ |
2.46 |
|
$ |
3.54 |
$ |
6.08 |
$ |
2.95 |
$ |
5.42 |
| Total general & administrative expense | $ |
12.27 |
|
$ |
17.87 |
$ |
15.83 |
$ |
14.82 |
$ |
17.94 |
| EMPIRE PETROLEUM CORPORATION | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| June 30, | December 31, | |||||
2024 |
2023 |
|||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash | $ |
9,257,773 |
|
$ |
7,792,508 |
|
| Accounts Receivable |
|
8,783,051 |
|
|
8,354,636 |
|
| Derivative Instruments |
|
- |
|
|
406,806 |
|
| Inventory |
|
1,451,195 |
|
|
1,433,454 |
|
| Prepaids |
|
788,073 |
|
|
757,500 |
|
| Total Current Assets |
|
20,280,092 |
|
|
18,744,904 |
|
| Property and Equipment: | ||||||
| Oil and Natural Gas Properties, Successful Efforts |
|
123,509,574 |
|
|
93,509,803 |
|
| Less: Accumulated Depreciation, Depletion and Impairment |
|
(27,040,862 |
) |
|
(22,996,805 |
) |
| Total Oil and Gas Properties, Net |
|
96,468,712 |
|
|
70,512,998 |
|
| Other Property and Equipment, Net |
|
1,625,870 |
|
|
1,883,211 |
|
| Total Property and Equipment, Net |
|
98,094,582 |
|
|
72,396,209 |
|
| Other Noncurrent Assets |
|
1,570,531 |
|
|
1,474,503 |
|
| TOTAL ASSETS | $ |
119,945,205 |
|
$ |
92,615,616 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts Payable | $ |
13,641,835 |
|
$ |
16,437,219 |
|
| Accrued Expenses |
|
8,105,002 |
|
|
7,075,302 |
|
| Derivative Instruments |
|
189,468 |
|
|
- |
|
| Current Portion of Lease Liability |
|
425,528 |
|
|
432,822 |
|
| Current Portion of Note Payable - Related Party |
|
1,060,004 |
|
|
1,060,004 |
|
| Current Portion of Long-Term Debt |
|
339,825 |
|
|
44,225 |
|
| Total Current Liabilities |
|
23,761,662 |
|
|
25,049,572 |
|
| Long-Term Debt |
|
8,523,756 |
|
|
4,596,775 |
|
| Long-Term Lease Liability |
|
338,953 |
|
|
544,382 |
|
| Asset Retirement Obligations |
|
28,649,500 |
|
|
27,468,427 |
|
| Total Liabilities |
|
61,273,871 |
|
|
57,659,156 |
|
| Stockholders' Equity: | ||||||
| Series A Preferred Stock - |
|
- |
|
|
- |
|
| Common Stock - |
|
90,897 |
|
|
85,025 |
|
| Additional Paid-in-Capital |
|
131,564,222 |
|
|
99,490,253 |
|
| Accumulated Deficit |
|
(72,983,785 |
) |
|
(64,618,818 |
) |
| Total Stockholders' Equity |
|
58,671,334 |
|
|
34,956,460 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
119,945,205 |
|
$ |
92,615,616 |
|
| 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, | |||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Cash Flows From Operating Activities: | |||||||||||||||
| Net Income (Loss) | $ |
(4,389,771 |
) |
$ |
(3,975,196 |
) |
$ |
(2,464,909 |
) |
$ |
(8,364,967 |
) |
$ |
(4,924,500 |
) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash | |||||||||||||||
| Provided By Operating Activities: | |||||||||||||||
| Stock Compensation and Issuances |
|
591,635 |
|
|
710,002 |
|
|
1,180,806 |
|
|
1,301,637 |
|
|
2,130,445 |
|
| Amortization of Right of Use Assets |
|
135,734 |
|
|
135,733 |
|
|
87,560 |
|
|
271,467 |
|
|
163,785 |
|
| Depreciation, Depletion and Amortization |
|
2,676,981 |
|
|
1,490,130 |
|
|
711,042 |
|
|
4,167,111 |
|
|
1,333,531 |
|
| Accretion of Asset Retirement Obligation |
|
492,449 |
|
|
485,349 |
|
|
405,361 |
|
|
977,798 |
|
|
806,636 |
|
| (Gain) Loss on Commodity Derivatives |
|
1,453 |
|
|
858,150 |
|
|
66,657 |
|
|
859,603 |
|
|
133,480 |
|
| Settlement on or Purchases of Derivative Instruments |
|
(252,630 |
) |
|
(10,700 |
) |
|
- |
|
|
(263,330 |
) |
|
(41,187 |
) |
| (Gain) Loss on Financial Derivatives |
|
1,736,000 |
|
|
(738,000 |
) |
|
- |
|
|
998,000 |
|
|
- |
|
| Amortization of Debt Discount on Convertible Notes |
|
500,382 |
|
|
- |
|
|
- |
|
|
500,382 |
|
|
- |
|
| Gain on Extinguishment of Debt |
|
(16,611 |
) |
|
- |
|
|
- |
|
|
(16,611 |
) |
|
- |
|
| Change in Operating Assets and Liabilities: | |||||||||||||||
| Accounts Receivable |
|
(1,694,690 |
) |
|
1,064,629 |
|
|
(1,189,280 |
) |
|
(630,061 |
) |
|
(2,039,189 |
) |
| Inventory, Oil in Tanks |
|
346,147 |
|
|
(363,888 |
) |
|
155,057 |
|
|
(17,741 |
) |
|
(265,802 |
) |
| Prepaids, Current |
|
462,599 |
|
|
(2,398 |
) |
|
618,737 |
|
|
460,201 |
|
|
708,549 |
|
| Accounts Payable |
|
(2,484,238 |
) |
|
4,339,024 |
|
|
(1,587,886 |
) |
|
1,854,786 |
|
|
(1,697,939 |
) |
| Accrued Expenses |
|
668,416 |
|
|
361,284 |
|
|
(464,538 |
) |
|
1,029,700 |
|
|
(3,642,305 |
) |
| Other Long Term Assets and Liabilities |
|
(574,966 |
) |
|
(446,430 |
) |
|
(436,523 |
) |
|
(1,021,396 |
) |
|
(650,134 |
) |
| Net Cash Provided By (Used In) Operating Activities |
|
(1,801,110 |
) |
|
3,907,689 |
|
|
(2,917,916 |
) |
|
2,106,579 |
|
|
(7,984,630 |
) |
| Cash Flows from Investing Activities: | |||||||||||||||
| Deposit for Acquisition of Oil ad Natural Gas Properties |
|
- |
|
|
- |
|
|
(670,000 |
) |
|
- |
|
|
(670,000 |
) |
| Additions to Oil and Natural Gas Properties |
|
(13,202,315 |
) |
|
(16,940,873 |
) |
|
(917,843 |
) |
|
(30,143,188 |
) |
|
(3,127,847 |
) |
| Purchase of Other Fixed Assets |
|
(88,868 |
) |
|
(31,023 |
) |
|
(125,866 |
) |
|
(119,891 |
) |
|
(153,036 |
) |
| Cash Paid for Right of Use Assets |
|
(125,237 |
) |
|
(125,238 |
) |
|
(117,560 |
) |
|
(250,475 |
) |
|
(204,105 |
) |
| Sinking Fund Deposit |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,779,000 |
|
| Net Cash Provided By (Used In) Investing Activities |
|
(13,416,420 |
) |
|
(17,097,134 |
) |
|
(1,831,269 |
) |
|
(30,513,554 |
) |
|
(1,375,988 |
) |
| Cash Flows from Financing Activities: | |||||||||||||||
| Borrowings on Credit Facility |
|
- |
|
|
3,950,000 |
|
|
- |
|
|
3,950,000 |
|
|
- |
|
| Proceeds from Promissory Note |
|
- |
|
|
5,000,000 |
|
|
- |
|
|
5,000,000 |
|
|
- |
|
| Proceeds from Rights offering (net of transaction costs) |
|
20,511,529 |
|
|
- |
|
|
- |
|
|
20,511,529 |
|
|
- |
|
| Principal Payments of Debt |
|
(156,594 |
) |
|
(61,598 |
) |
|
(719,838 |
) |
|
(218,192 |
) |
|
(1,288,974 |
) |
| Net Proceeds from Warrants Exercises |
|
628,903 |
|
|
- |
|
|
- |
|
|
628,903 |
|
|
- |
|
| Net Cash Provided By (Used In) Financing Activities |
|
20,983,838 |
|
|
8,888,402 |
|
|
(719,838 |
) |
|
29,872,240 |
|
|
(1,288,974 |
) |
| Net Change in Cash |
|
5,766,308 |
|
|
(4,301,043 |
) |
|
(5,469,023 |
) |
|
1,465,265 |
|
|
(10,649,592 |
) |
| Cash - Beginning of Period |
|
3,491,465 |
|
|
7,792,508 |
|
|
6,763,873 |
|
|
7,792,508 |
|
|
11,944,442 |
|
| Cash - End of Period | $ |
9,257,773 |
|
$ |
3,491,465 |
|
$ |
1,294,850 |
|
$ |
9,257,773 |
|
$ |
1,294,850 |
|
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
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Net Income (Loss) | $ |
(4,389,771 |
) |
$ |
(3,975,196 |
) |
$ |
(2,464,909 |
) |
$ |
(8,364,967 |
) |
$ |
(4,924,500 |
) |
| Adjusted for: | |||||||||||||||
| (Gain) loss on commodity derivatives |
|
1,453 |
|
|
858,150 |
|
|
66,657 |
|
|
859,603 |
|
|
133,480 |
|
| Settlement on or purchases of derivative instruments |
|
(252,630 |
) |
|
(10,700 |
) |
|
- |
|
|
(263,330 |
) |
|
(41,187 |
) |
| Loss on financial derivatives |
|
1,736,000 |
|
|
(738,000 |
) |
|
- |
|
|
998,000 |
|
|
- |
|
| CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
| Adjusted Net Income (Loss) | $ |
(2,904,948 |
) |
$ |
(3,865,746 |
) |
$ |
(2,398,252 |
) |
$ |
(6,770,694 |
) |
$ |
(4,457,387 |
) |
| Diluted Weighted Average Shares Outstanding |
|
29,839,853 |
|
|
25,688,427 |
|
|
22,105,704 |
|
|
27,752,816 |
|
|
22,101,264 |
|
| Adjusted Net Income (Loss) Per Share | $ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.11 |
) |
$ |
(0.24 |
) |
$ |
(0.20 |
) |
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 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.
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, |
June 30, | June 30, | |||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Net Income (Loss) | $ |
(4,389,771 |
) |
$ |
(3,975,196 |
) |
$ |
(2,464,909 |
) |
$ |
(8,364,967 |
) |
$ |
(4,924,500 |
) |
| Add Back: | |||||||||||||||
| Interest expense |
|
735,220 |
|
|
315,049 |
|
|
184,887 |
|
|
1,050,269 |
|
|
422,186 |
|
| DD&A |
|
2,676,981 |
|
|
1,490,130 |
|
|
711,042 |
|
|
4,167,111 |
|
|
1,333,531 |
|
| Accretion |
|
492,449 |
|
|
485,349 |
|
|
405,361 |
|
|
977,798 |
|
|
806,636 |
|
| Amortization of right of use assets |
|
135,734 |
|
|
135,733 |
|
|
87,560 |
|
|
271,467 |
|
|
163,785 |
|
| Income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| EBITDA | $ |
(349,387 |
) |
$ |
(1,548,935 |
) |
$ |
(1,076,059 |
) |
$ |
(1,898,322 |
) |
$ |
(2,198,362 |
) |
| Adjustments: | |||||||||||||||
| Stock based Compensation |
|
591,635 |
|
|
710,002 |
|
|
1,180,806 |
|
|
1,301,637 |
|
|
2,130,445 |
|
| (Gain) loss on commodity derivatives |
|
1,453 |
|
|
858,150 |
|
|
66,657 |
|
|
859,603 |
|
|
133,480 |
|
| Settlement on or purchases of derivative instruments |
|
(252,630 |
) |
|
(10,700 |
) |
|
- |
|
|
(263,330 |
) |
|
(41,187 |
) |
| (Gain) Loss on financial derivatives |
|
1,736,000 |
|
|
(738,000 |
) |
|
- |
|
|
998,000 |
|
|
- |
|
| CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
| Adjusted EBITDA | $ |
1,727,071 |
|
$ |
(729,483 |
) |
$ |
171,404 |
|
$ |
997,588 |
|
$ |
399,196 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814852806/en/
Empire Petroleum Corporation
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
FAQ
What was Empire Petroleum's (EP) net production volume in Q2 2024?
How much did Empire Petroleum's (EP) total product revenue increase in Q2 2024?
What was Empire Petroleum's (EP) Adjusted EBITDA for Q2 2024?
What is the status of Empire Petroleum's (EP) North Dakota EOR development program?
