Empire Petroleum Reports Q3 2024 Results and Provides Strategic Operational Updates
Empire Petroleum (EP) reported Q3 2024 results with net production of 2,460 barrels of oil equivalent per day, including 1,573 barrels of oil per day. The company posted total product revenue of $10.9 million and a net loss of $3.6 million ($0.12 per share). Key developments include completion of first-stage Enhanced Oil Recovery activities in North Dakota, filing a provisional patent for hydrocarbon vaporization technology, and successful completion of a $10.0 million oversubscribed rights offering at $5.05 per share. Production mix comprised 64% oil, 17% natural gas liquids, and 19% natural gas.
Empire Petroleum (EP) ha riportato i risultati del terzo trimestre 2024 con una produzione netta di 2.460 barili di olio equivalente al giorno, di cui 1.573 barili di olio al giorno. L'azienda ha registrato un fatturato totale da prodotto di 10,9 milioni di dollari e una perdita netta di 3,6 milioni di dollari (0,12 dollari per azione). Tra gli sviluppi chiave, si segnala il completamento delle attività di Recupero Migliorato di Olio (Enhanced Oil Recovery) nella prima fase in North Dakota, la presentazione di un brevetto provvisorio per la tecnologia di vaporizzazione degli idrocarburi e il completamento con successo di un’offerta di diritti sovrascritta da 10,0 milioni di dollari a 5,05 dollari per azione. Il mix di produzione era composto dal 64% di olio, 17% di liquidi di gas naturale e 19% di gas naturale.
Empire Petroleum (EP) informó los resultados del tercer trimestre de 2024 con una producción neta de 2,460 barriles de petróleo equivalente por día, de los cuales 1,573 barriles son de petróleo. La compañía reportó ingresos totales por productos de $10.9 millones y una pérdida neta de $3.6 millones ($0.12 por acción). Los desarrollos clave incluyen la finalización de la fase inicial de las actividades de Recuperación Mejorada de Petróleo en Dakota del Norte, la presentación de una patente provisional para la tecnología de vaporización de hidrocarburos, y la exitosa culminación de una oferta de derechos sobre suscripciones por $10.0 millones a $5.05 por acción. La mezcla de producción consistió en un 64% de petróleo, 17% de líquidos de gas natural y 19% de gas natural.
엠파이어 석유 (EP)는 2024년 3분기 결과를 보고했으며, 하루에 2,460배럴의 석유 동등 생산량을 기록했으며, 이 중 1,573배럴은 원유입니다. 이 회사는 총 제품 수익으로 $10.9 백만을 올렸고, 순손실은 $3.6 백만 ($0.12 주당)으로 집계되었습니다. 주요 개발 사항으로는 노스다코타에서의 향상된 석유 회수 활동의 첫 번째 단계 완료, 탄화수소 기화 기술에 대한 임시 특허 출원, 그리고 주당 $5.05에 $10.0 백만의 초과 구독 권리 공모의 성공적인 완료가 포함됩니다. 생산 믹스는 원유 64%, 천연가스 액체 17%, 천연가스 19%로 구성되었습니다.
Empire Petroleum (EP) a publié ses résultats pour le troisième trimestre 2024 avec une production nette de 2.460 barils équivalent pétrole par jour, dont 1.573 barils de pétrole par jour. La société a enregistré des revenus totaux de produits de 10,9 millions de dollars et une perte nette de 3,6 millions de dollars (0,12 dollar par action). Parmi les développements clés, on note l'achèvement de la première étape des activités de récupération améliorée de pétrole dans le Dakota du Nord, le dépôt d'un brevet provisoire pour la technologie de vaporisation des hydrocarbures, et l'achèvement réussi d'une offre de droits sursouscrite de 10,0 millions de dollars à 5,05 dollars par action. Le mix de production se composait de 64% de pétrole, 17% de liquides de gaz naturel et 19% de gaz naturel.
Empire Petroleum (EP) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, mit einer Nettoproduktion von 2.460 Barrel Öl-Äquivalent pro Tag, darunter 1.573 Barrel Öl pro Tag. Das Unternehmen erzielte Gesamterlöse aus Produkten in Höhe von 10,9 Millionen Dollar und einen Nettoverlust von 3,6 Millionen Dollar (0,12 Dollar pro Aktie). Zu den wichtigsten Entwicklungen gehören der Abschluss der ersten Phase der verbesserten Ölgewinnungsaktivitäten in North Dakota, die Anmeldung eines vorläufigen Patents für die Technologie zur Verdampfung von Kohlenwasserstoffen und der erfolgreiche Abschluss eines überzeichneten Bezugsangebots in Höhe von 10,0 Millionen Dollar zu 5,05 Dollar pro Aktie. Die Produktionszusammensetzung bestand aus 64% Öl, 17% Flüssiggas und 19% Erdgas.
- Successfully completed oversubscribed $10.0 million rights offering
- 20% year-over-year increase in net oil sales volumes
- Reduction in lease operating expenses from $7.1M to $6.7M YoY
- Potential upside of 300M to 1.5B BOE in New Mexico assets
- Net loss increased 32% YoY to $3.6 million
- Production declined 7% QoQ to 2,460 Boe/d
- Product revenue decreased 15% QoQ to $10.9 million
- Realized price per Boe dropped 12% YoY to $48.12
- G&A expenses increased to $3.6M from $2.6M YoY
Insights
Empire Petroleum's Q3 2024 results reveal significant operational challenges, with a
The strategic shift to Enhanced Oil Recovery (EOR) in the Starbuck field represents a calculated risk. Converting three producing wells to injectors temporarily reduces output but positions for potential long-term production gains. The patent-pending fluid superheating technology for injection operations could be a significant technical advancement. However, execution risks remain high as steady-state EOR operations aren't expected until Q1 2025. The New Mexico situation, with estimated recoverable resources of 300M-1.5B BOE, presents substantial upside but remains entangled in costly legal challenges. The production mix of
THIRD QUARTER 2024 HIGHLIGHTS
-
Delivered Q3-2024 net production volumes of 2,460 barrels of oil equivalent per day (“Boe/d”) including 1,573 barrels of oil per day (“Bbl/d”)
-
Boe/d is comprised of
64% oil,17% natural gas liquids (“NGLs”), and19% natural gas;
-
Boe/d is comprised of
-
Completed the first stage of Enhanced Oil Recovery (“EOR”) activities for Empire’s Starbuck Drilling Program (“Starbuck”) in
North Dakota , successfully converting three wells into injectors;- In Q3-2024, Empire began preparations for filing a provisional patent application with the United States Patent and Trademark Office (“USPTO”) in connection with a technology it developed in relation to hydrocarbon vaporization with the official application submitted in Q4-2024;
-
Established the record date for a
$10.0 million $5.05 -
Net proceeds of the Rights Offering will be used for previous, current and future drilling activity in
North Dakota andNew Mexico , workovers and recompletions inTexas , land and lease purchases, and the completion of the initial stage of EOR facilities in the Starbuck field; - The Rights Offering was successfully completed and oversubscribed in Q4-2024, reflecting strong shareholder confidence and strengthening Empire’s financial position as the Company advances key initiatives and operational goals;
-
Net proceeds of the Rights Offering will be used for previous, current and future drilling activity in
-
Expanded Empire’s technical focus to its
Texas region, implementing advanced strategies and technologies designed to maximize production efficiency and enhance resource recovery to drive long-term growth; and -
Reported Q3-2024 total product revenue of
$10.9 million $3.6 million $0.12 $3.8 million $0.12
2025 OUTLOOK
“In recent months, Empire has been focused on its capital expenditures program, while simultaneously advancing its projects and infrastructure development in North Dakota,” said Phil Mulacek, Chairman of the Board of Empire. “We are incredibly proud of the progress made in Starbuck and the completion of the horizontal drilling, filing of a key patent, and securing the injection permits are significant milestones that highlight our team’s dedication to driving innovation and achieving operational excellence.”
Mike Morrisett, President and CEO, added, “We expect the EOR injections in Starbuck to achieve our goals, reflecting Empire’s dedication to efficiency and continuous growth. Additionally, the potential developments in
- Empire completed its initial 13-well drilling program in the Starbuck field in Q3-2024, with the three injection wells expected to be instrumental in increasing production;
-
The production decline in Q3-2024 resulted from two field optimization efforts, including: 1) the conversion of three producing wells into injectors to support long-term production growth, and 2) the temporary shut in of three producing wells near drilling activity, while drilling the horizontal wells;
- The strategic shift temporarily reduced output, but positions the Company to achieve production gains through future EOR activities, as the injection wells begin to stimulate reservoir performance;
-
Empire is conducting a thorough analysis of The Company’s other fields in
North Dakota to determine which sites may be well-suited for EOR processes and technologies; - During Q4-2024, the Company is working on standard commissioning operations on the EOR equipment before the EOR can reach steady state, which is expected in Q1-2025;
-
In Q4-2024, Empire officially submitted its patent application to the USPTO;
- The patent application is directed to a novel method for superheating water or other fluids prior to injection into a well, which will significantly improve the effectiveness of the EOR injection operations;
-
The Company is exploring further growth opportunities through the deployment of 2D and 3D seismic activities;
- By integrating seismic data with EOR methods, Empire is positioning itself to unlock greater resource potential, guiding future development plans and maximizing long-term asset value;
-
The second stage of the EOR program and infrastructure remains on track to be completed in 2025-2026; and
-
New horizontal laterals will be completed for Starbuck and the other fields Empire operates in
North Dakota .
-
New horizontal laterals will be completed for Starbuck and the other fields Empire operates in
-
Empire continues the legal and regulatory actions against third-parties trespassing on the
New Mexico water floods;-
From May 2021 through September 2024, Empire estimates gross costs in excess of approximately
$25.0 -$30.0 million - Empire remains committed to actively pursuing all regulatory and legal avenues, as the Company believes the potential upside is between 300 million BOE to 1.5 billion BOE with primary, secondary and tertiary (CO2) recovery.
-
From May 2021 through September 2024, Empire estimates gross costs in excess of approximately
THIRD QUARTER 2024 FINANCIAL AND OPERATIONAL RESULTS
Q3-24 |
Q2-24 |
% Change2
|
Q3-23 |
% Change2
|
|
|
|
|
|
|
|
| Net equivalent sales (Boe/d) | 2,460 |
2,638 |
- |
2,048 |
|
| Net oil sales (Bbls/d) | 1,573 |
1,761 |
- |
1,306 |
|
| Realized price ($/Boe) |
|
|
- |
|
- |
| Product Revenue ($M) |
|
|
- |
|
|
| Net Loss ($M) |
( |
( |
|
( |
- |
| Adjusted Net Loss ($M)1 |
( |
( |
- |
( |
- |
| Adjusted EBITDA ($M)1 |
( |
|
NM |
|
NM |
_________________________ |
|||||
1 Adjusted net 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 |
|||||
Net sales volumes for Q3-2024 were 2,460 Boe/d, including 1,573 barrels of oil per day; 425 barrels of NGLs per day, and 2,774 thousand cubic feet per day (“Mcf/d”) or 462 Boe/d of natural gas. Year-over-year net oil sales volumes increase of approximately
Empire reported Q3-2024 total product revenue of
Q3-2024 lease operating expenses decreased to
Production and ad valorem taxes for Q3-2024 were
Depreciation, Depletion, Amortization and Accretion (“DD&A”) for Q3-2024 was
General and administrative expenses, excluding share-based compensation expense, were
Interest expense for Q3-2024 was
Empire recorded a Q3-2024 net loss of
Adjusted EBITDA decreased to
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For the nine months ended September 30, 2024, Empire invested approximately
As of September 30, 2024, Empire had approximately
Empire received gross proceeds of
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,
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, 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 | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Revenue: | |||||||||||||||
| Oil Sales | $ |
10,341,280 |
|
$ |
12,287,272 |
|
$ |
9,492,127 |
|
$ |
32,070,516 |
|
$ |
27,578,453 |
|
| Gas Sales |
|
8,547 |
|
|
(115,833 |
) |
|
411,217 |
|
|
269,844 |
|
|
1,315,938 |
|
| NGL Sales |
|
541,755 |
|
|
617,029 |
|
|
411,624 |
|
|
1,574,995 |
|
|
1,278,759 |
|
| Total Product Revenues |
|
10,891,582 |
|
|
12,788,468 |
|
|
10,314,968 |
|
|
33,915,355 |
|
|
30,173,150 |
|
| Other |
|
15,269 |
|
|
11,227 |
|
|
17,050 |
|
|
36,582 |
|
|
54,775 |
|
| Loss on Commodity Derivatives |
|
470,717 |
|
|
(1,453 |
) |
|
(1,185,921 |
) |
|
(388,886 |
) |
|
(1,319,401 |
) |
| Total Revenue |
|
11,377,568 |
|
|
12,798,242 |
|
|
9,146,097 |
|
|
33,563,051 |
|
|
28,908,524 |
|
| Costs and Expenses: | |||||||||||||||
| Lease Operating Expense |
|
6,733,611 |
|
|
7,542,685 |
|
|
7,050,054 |
|
|
21,663,719 |
|
|
20,669,217 |
|
| Production and Ad Valorem Taxes |
|
984,075 |
|
|
1,065,718 |
|
|
792,241 |
|
|
2,883,240 |
|
|
2,271,630 |
|
| Depletion, Depreciation & Amortization |
|
2,596,360 |
|
|
2,676,981 |
|
|
727,943 |
|
|
6,763,471 |
|
|
2,061,474 |
|
| Accretion of Asset Retirement Obligation |
|
509,131 |
|
|
492,449 |
|
|
470,505 |
|
|
1,486,929 |
|
|
1,277,141 |
|
| General and Administrative Expense: | |||||||||||||||
| General and Administrative |
|
3,635,917 |
|
|
2,354,080 |
|
|
2,580,464 |
|
|
8,869,034 |
|
|
7,497,947 |
|
| Stock-Based Compensation |
|
335,077 |
|
|
591,635 |
|
|
158,792 |
|
|
1,636,714 |
|
|
2,289,237 |
|
| Total General and Administrative Expense |
|
3,970,994 |
|
|
2,945,715 |
|
|
2,739,256 |
|
|
10,505,748 |
|
|
9,787,184 |
|
| Total Cost and Expenses |
|
14,794,171 |
|
|
14,723,548 |
|
|
11,779,999 |
|
|
43,303,107 |
|
|
36,066,646 |
|
| Operating Loss |
|
(3,416,603 |
) |
|
(1,925,306 |
) |
|
(2,633,902 |
) |
|
(9,740,056 |
) |
|
(7,158,122 |
) |
| Other Income and (Expense): | |||||||||||||||
| Interest Expense |
|
(196,306 |
) |
|
(735,220 |
) |
|
(249,796 |
) |
|
(1,246,575 |
) |
|
(671,982 |
) |
| Other Income (Expense) |
|
(26,705 |
) |
|
(1,729,245 |
) |
|
1,350 |
|
|
(1,017,950 |
) |
|
23,256 |
|
| Loss before Taxes |
|
(3,639,614 |
) |
|
(4,389,771 |
) |
|
(2,882,348 |
) |
|
(12,004,581 |
) |
|
(7,806,848 |
) |
| Income Tax Benefit |
|
- |
|
|
- |
|
|
134,720 |
|
|
- |
|
|
134,720 |
|
| Net Loss |
|
(3,639,614 |
) |
|
(4,389,771 |
) |
|
(2,747,628 |
) |
|
(12,004,581 |
) |
|
(7,672,128 |
) |
| Net Loss per Common Share: | |||||||||||||||
| Basic | $ |
(0.12 |
) |
$ |
(0.15 |
) |
$ |
(0.12 |
) |
$ |
(0.41 |
) |
$ |
(0.34 |
) |
| Diluted | $ |
(0.12 |
) |
$ |
(0.15 |
) |
$ |
(0.12 |
) |
$ |
(0.41 |
) |
$ |
(0.34 |
) |
| Weighted Average Number of Common Shares Outstanding: | |||||||||||||||
| Basic |
|
31,619,333 |
|
|
29,839,853 |
|
|
22,727,639 |
|
|
29,055,331 |
|
|
22,320,207 |
|
| Diluted |
|
31,619,333 |
|
|
29,839,853 |
|
|
22,727,639 |
|
|
29,055,331 |
|
|
22,320,207 |
|
| EMPIRE PETROLEUM CORPORATION | |||||||||||
| Condensed Operating Data | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||
| Net Sales Volumes: | |||||||||||
| Oil (Bbl) |
|
144,674 |
|
160,283 |
|
|
120,177 |
|
435,717 |
|
368,847 |
| Natural gas (Mcf) |
|
255,195 |
|
241,242 |
|
|
195,908 |
|
708,258 |
|
638,419 |
| Natural gas liquids (Bbl) |
|
39,137 |
|
39,612 |
|
|
35,568 |
|
113,534 |
|
106,002 |
| Total (Boe) |
|
226,344 |
|
240,102 |
|
|
188,396 |
|
667,294 |
|
581,252 |
| Average daily equivalent sales (Boe/d) |
|
2,460 |
|
2,638 |
|
|
2,048 |
|
2,435 |
|
2,129 |
| Average Price per Unit: | |||||||||||
| Oil ($/Bbl) | $ |
71.48 |
$ |
76.66 |
|
$ |
78.98 |
$ |
73.60 |
$ |
74.77 |
| Natural gas ($/Mcf) | $ |
0.03 |
$ |
(0.48 |
) |
$ |
2.10 |
$ |
0.38 |
$ |
2.06 |
| Natural gas liquids ($/Bbl) | $ |
13.84 |
$ |
15.58 |
|
$ |
11.57 |
$ |
13.87 |
$ |
12.06 |
| Total ($/Boe) | $ |
48.12 |
$ |
53.26 |
|
$ |
54.75 |
$ |
50.83 |
$ |
51.91 |
| Operating Costs and Expenses per Boe: | |||||||||||
| Lease operating expense | $ |
29.75 |
$ |
31.41 |
|
$ |
37.42 |
$ |
32.47 |
$ |
35.56 |
| Production and ad valorem taxes | $ |
4.35 |
$ |
4.44 |
|
$ |
4.21 |
$ |
4.32 |
$ |
3.91 |
| Depreciation, depletion, amortization and accretion | $ |
13.72 |
$ |
13.20 |
|
$ |
6.36 |
$ |
12.36 |
$ |
5.74 |
| General & administrative expense: | |||||||||||
| General & administrative expense | $ |
16.06 |
$ |
9.80 |
|
$ |
13.70 |
$ |
13.29 |
$ |
12.90 |
| Stock-based compensation | $ |
1.48 |
$ |
2.46 |
|
$ |
0.84 |
$ |
2.45 |
$ |
3.94 |
| Total general & administrative expense | $ |
17.54 |
$ |
12.27 |
|
$ |
14.54 |
$ |
15.74 |
$ |
16.84 |
| EMPIRE PETROLEUM CORPORATION | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| September 30, | December 31, | |||||
2024 |
2023 |
|||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash | $ |
3,149,716 |
|
$ |
7,792,508 |
|
| Accounts Receivable |
|
6,505,741 |
|
|
8,354,636 |
|
| Derivative Instruments |
|
- |
|
|
406,806 |
|
| Inventory |
|
1,499,206 |
|
|
1,433,454 |
|
| Prepaids |
|
576,340 |
|
|
757,500 |
|
| Total Current Assets |
|
11,731,003 |
|
|
18,744,904 |
|
| Property and Equipment: | ||||||
| Oil and Natural Gas Properties, Successful Efforts |
|
136,391,055 |
|
|
93,509,803 |
|
| Less: Accumulated Depreciation, Depletion and Impairment |
|
(29,561,539 |
) |
|
(22,996,805 |
) |
| Total Oil and Gas Properties, Net |
|
106,829,516 |
|
|
70,512,998 |
|
| Other Property and Equipment, Net |
|
1,436,491 |
|
|
1,883,211 |
|
| Total Property and Equipment, Net |
|
108,266,007 |
|
|
72,396,209 |
|
| Other Noncurrent Assets |
|
1,245,519 |
|
|
1,474,503 |
|
| TOTAL ASSETS | $ |
121,242,529 |
|
$ |
92,615,616 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities: | ||||||
| Accounts Payable | $ |
18,238,400 |
|
$ |
16,437,219 |
|
| Accrued Expenses |
|
8,146,457 |
|
|
7,075,302 |
|
| Current Portion of Lease Liability |
|
415,850 |
|
|
432,822 |
|
| Current Portion of Note Payable - Related Party |
|
- |
|
|
1,060,004 |
|
| Current Portion of Long-Term Debt |
|
193,178 |
|
|
44,225 |
|
| Total Current Liabilities |
|
26,993,885 |
|
|
25,049,572 |
|
| Long-Term Debt |
|
8,512,020 |
|
|
4,596,775 |
|
| Long-Term Lease Liability |
|
238,674 |
|
|
544,382 |
|
| Asset Retirement Obligations |
|
28,968,173 |
|
|
27,468,427 |
|
| Total Liabilities |
|
64,712,752 |
|
|
57,659,156 |
|
| Stockholders' Equity: | ||||||
| Series A Preferred Stock - |
|
- |
|
|
- |
|
| Common Stock - |
|
91,179 |
|
|
85,025 |
|
| Additional Paid-in-Capital |
|
133,061,997 |
|
|
99,490,253 |
|
| Accumulated Deficit |
|
(76,623,399 |
) |
|
(64,618,818 |
) |
| Total Stockholders' Equity |
|
56,529,777 |
|
|
34,956,460 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
121,242,529 |
|
$ |
92,615,616 |
|
| EMPIRE PETROLEUM CORPORATION | |||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | June 30, |
September 30, | September 30, | September 30, | |||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Cash Flows From Operating Activities: | |||||||||||||||
| Net Loss | $ |
(3,639,614 |
) |
$ |
(4,389,771 |
) |
$ |
(2,747,628 |
) |
$ |
(12,004,581 |
) |
$ |
(7,672,128 |
) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash | |||||||||||||||
| Provided By Operating Activities: | |||||||||||||||
| Stock Compensation and Issuances |
|
335,077 |
|
|
591,635 |
|
|
158,792 |
|
|
1,636,714 |
|
|
2,289,237 |
|
| Amortization of Right of Use Assets |
|
135,735 |
|
|
135,734 |
|
|
124,171 |
|
|
407,202 |
|
|
287,956 |
|
| Depreciation, Depletion and Amortization |
|
2,596,360 |
|
|
2,676,981 |
|
|
727,943 |
|
|
6,763,471 |
|
|
2,061,474 |
|
| Accretion of Asset Retirement Obligation |
|
509,131 |
|
|
492,449 |
|
|
470,505 |
|
|
1,486,929 |
|
|
1,277,141 |
|
| (Gain) Loss on Commodity Derivatives |
|
(470,717 |
) |
|
1,453 |
|
|
1,185,921 |
|
|
388,886 |
|
|
1,319,401 |
|
| Settlement on or Purchases of Derivative Instruments |
|
281,530 |
|
|
(252,630 |
) |
|
(45,855 |
) |
|
18,200 |
|
|
(87,042 |
) |
| (Gain) Loss on Financial Derivatives |
|
- |
|
|
1,736,000 |
|
|
- |
|
|
998,000 |
|
|
- |
|
| Amortization of Debt Discount on Convertible Notes |
|
- |
|
|
500,382 |
|
|
- |
|
|
500,382 |
|
|
- |
|
| (Gain) Loss on Extinguishment of Debt |
|
26,705 |
|
|
(16,611 |
) |
|
- |
|
|
10,094 |
|
|
- |
|
| Change in Operating Assets and Liabilities: | |||||||||||||||
| Accounts Receivable |
|
2,277,310 |
|
|
(1,694,690 |
) |
|
467,151 |
|
|
1,647,249 |
|
|
(1,572,038 |
) |
| Inventory, Oil in Tanks |
|
(48,011 |
) |
|
346,147 |
|
|
(26,255 |
) |
|
(65,752 |
) |
|
(292,057 |
) |
| Prepaids, Current |
|
211,733 |
|
|
462,599 |
|
|
202,867 |
|
|
671,934 |
|
|
911,416 |
|
| Accounts Payable |
|
10,419,209 |
|
|
(2,484,238 |
) |
|
1,892,377 |
|
|
12,273,995 |
|
|
194,438 |
|
| Accrued Expenses |
|
41,175 |
|
|
668,416 |
|
|
(89,808 |
) |
|
1,070,875 |
|
|
(3,732,113 |
) |
| Other Long Term Assets and Liabilities |
|
135,172 |
|
|
(574,966 |
) |
|
(292,782 |
) |
|
(886,224 |
) |
|
(942,916 |
) |
| Net Cash Provided By (Used In) Operating Activities |
|
12,810,795 |
|
|
(1,801,110 |
) |
|
2,027,399 |
|
|
14,917,374 |
|
|
(5,957,231 |
) |
| Cash Flows from Investing Activities: | |||||||||||||||
| Acquisition of Oil and Natural Gas Properties |
|
- |
|
|
- |
|
|
(1,424,419 |
) |
|
- |
|
|
(2,094,419 |
) |
| Additions to Oil and Natural Gas Properties |
|
(18,615,643 |
) |
|
(13,202,315 |
) |
|
(2,468,688 |
) |
|
(48,758,831 |
) |
|
(5,596,535 |
) |
| Purchase of Other Fixed Assets |
|
(19,590 |
) |
|
(88,868 |
) |
|
(26,478 |
) |
|
(139,481 |
) |
|
(179,514 |
) |
| Cash Paid for Right of Use Assets |
|
(125,236 |
) |
|
(125,237 |
) |
|
(223,606 |
) |
|
(375,711 |
) |
|
(427,711 |
) |
| Sinking Fund Deposit |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,779,000 |
|
| Net Cash Provided By (Used In) Investing Activities |
|
(18,760,469 |
) |
|
(13,416,420 |
) |
|
(4,143,191 |
) |
|
(49,274,023 |
) |
|
(5,519,179 |
) |
| Cash Flows from Financing Activities: | |||||||||||||||
| Borrowings on Credit Facility |
|
- |
|
|
- |
|
|
- |
|
|
3,950,000 |
|
|
- |
|
| Proceeds from Bridge Loans from Related Parties |
|
- |
|
|
- |
|
|
10,000,000 |
|
|
- |
|
|
10,000,000 |
|
| Proceeds from Warrant Exercises |
|
- |
|
|
- |
|
|
2,500,000 |
|
|
- |
|
|
2,500,000 |
|
| Proceeds from Promissory Note |
|
- |
|
|
- |
|
|
- |
|
|
5,000,000 |
|
|
- |
|
| Proceeds from Rights offering (net of transaction costs) |
|
- |
|
|
20,511,529 |
|
|
- |
|
|
20,511,529 |
|
|
- |
|
| Principal Payments of Debt |
|
(158,383 |
) |
|
(156,594 |
) |
|
(644,224 |
) |
|
(376,575 |
) |
|
(1,933,198 |
) |
| Net Proceeds from Warrants Exercises |
|
- |
|
|
628,903 |
|
|
- |
|
|
628,903 |
|
|
- |
|
| Net Cash Provided By (Used In) Financing Activities |
|
(158,383 |
) |
|
20,983,838 |
|
|
11,855,776 |
|
|
29,713,857 |
|
|
10,566,802 |
|
| Net Change in Cash |
|
(6,108,057 |
) |
|
5,766,308 |
|
|
9,739,984 |
|
|
(4,642,792 |
) |
|
(909,608 |
) |
| Cash - Beginning of Period |
|
9,257,773 |
|
|
3,491,465 |
|
|
1,294,850 |
|
|
7,792,508 |
|
|
11,944,442 |
|
| Cash - End of Period | $ |
3,149,716 |
|
$ |
9,257,773 |
|
$ |
11,034,834 |
|
$ |
3,149,716 |
|
$ |
11,034,834 |
|
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 | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Net Loss | $ |
(3,639,614 |
) |
$ |
(4,389,771 |
) |
$ |
(2,747,628 |
) |
$ |
(12,004,581 |
) |
$ |
(7,672,128 |
) |
| Adjusted for: | |||||||||||||||
| (Gain) loss on commodity derivatives |
|
(470,717 |
) |
|
1,453 |
|
|
1,185,921 |
|
|
388,886 |
|
|
1,319,401 |
|
| Settlement on or purchases of derivative instruments |
|
281,530 |
|
|
(252,630 |
) |
|
(45,855 |
) |
|
18,200 |
|
|
(87,042 |
) |
| Loss on financial derivatives |
|
- |
|
|
1,736,000 |
|
|
- |
|
|
998,000 |
|
|
- |
|
| CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
| COO severance (including employer taxes) |
|
- |
|
|
- |
|
|
145,319 |
|
|
- |
|
|
145,319 |
|
| Adjusted Net Loss | $ |
(3,828,801 |
) |
$ |
(2,904,948 |
) |
$ |
(1,462,243 |
) |
$ |
(10,599,495 |
) |
$ |
(5,919,630 |
) |
| Diluted Weighted Average Shares Outstanding |
|
31,619,333 |
|
|
29,839,853 |
|
|
22,727,639 |
|
|
29,055,331 |
|
|
22,320,207 |
|
| Adjusted Net Loss Per Share | $ |
(0.12 |
) |
$ |
(0.10 |
) |
$ |
(0.06 |
) |
$ |
(0.36 |
) |
$ |
(0.27 |
) |
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 | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||
2024 |
2024 |
2023 |
2024 |
2023 |
|||||||||||
| Net Loss | $ |
(3,639,614 |
) |
$ |
(4,389,771 |
) |
$ |
(2,747,628 |
) |
$ |
(12,004,581 |
) |
$ |
(7,672,128 |
) |
| Add Back: | |||||||||||||||
| Interest expense |
|
196,306 |
|
|
735,220 |
|
|
249,796 |
|
|
1,246,575 |
|
|
671,982 |
|
| DD&A |
|
2,596,360 |
|
|
2,676,981 |
|
|
727,943 |
|
|
6,763,471 |
|
|
2,061,474 |
|
| Accretion |
|
509,131 |
|
|
492,449 |
|
|
470,505 |
|
|
1,486,929 |
|
|
1,277,141 |
|
| Amortization of right of use assets |
|
135,735 |
|
|
135,734 |
|
|
124,171 |
|
|
407,202 |
|
|
287,956 |
|
| Income taxes |
|
- |
|
|
- |
|
|
(134,720 |
) |
|
- |
|
|
(134,720 |
) |
| EBITDA | $ |
(202,082 |
) |
$ |
(349,387 |
) |
$ |
(1,309,933 |
) |
$ |
(2,100,404 |
) |
$ |
(3,508,295 |
) |
| Adjustments: | |||||||||||||||
| Stock based Compensation |
|
335,077 |
|
|
591,635 |
|
|
158,792 |
|
|
1,636,714 |
|
|
2,289,237 |
|
| (Gain) loss on commodity derivatives |
|
(470,717 |
) |
|
1,453 |
|
|
1,185,921 |
|
|
388,886 |
|
|
1,319,401 |
|
| Settlement on or purchases of derivative instruments |
|
281,530 |
|
|
(252,630 |
) |
|
(45,855 |
) |
|
18,200 |
|
|
(87,042 |
) |
| (Gain) Loss on financial derivatives |
|
- |
|
|
1,736,000 |
|
|
- |
|
|
998,000 |
|
|
- |
|
| CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
| COO severance (including employer taxes) |
|
- |
|
|
- |
|
|
145,319 |
|
|
- |
|
|
145,319 |
|
| Adjusted EBITDA | $ |
(56,192 |
) |
$ |
1,727,071 |
|
$ |
134,244 |
|
$ |
941,396 |
|
$ |
533,440 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114347075/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 Corporation
FAQ
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