Empire Petroleum Reports Results for Fourth Quarter and Full Year 2024 and Provides Operational Updates

Rhea-AI Summary

Empire Petroleum (EP) reported its Q4 and full-year 2024 results, highlighting a 22% year-over-year increase in Q4-2024 oil production to 1,581 Bbl/d, with total production reaching 2,356 Boe/d. The company reported full-year 2024 revenue of $44.0 million but faced a net loss of $16.2 million ($0.54 per share).

Key developments include successful Enhanced Oil Recovery (EOR) initiatives in North Dakota, with initial results showing a 700% increase in Starbuck production. Year-end 2024 proved reserves stood at 9.2 MMBoe with a standardized measure of $98.4 million. The company completed two oversubscribed rights offerings in 2024, raising $20.7 million and $10.0 million, and increased its revolving credit facility from $10.0 million to $20.0 million.

Positive

• 22% year-over-year increase in Q4-2024 oil production
• 700% increase in Starbuck production during initial 30-day peak period
• Revenue increased to $44.0 million in 2024 from $40.1 million in 2023
• Successfully raised $30.7 million through oversubscribed rights offerings
• Credit facility doubled to $20.0 million, providing $11.0 million additional capacity
• Lease operating expenses decreased to $27.5 million from $28.6 million in 2023

Negative

• Net loss increased to $16.2 million in 2024 from $12.5 million in 2023
• Operational challenges in North Dakota EOR implementation affecting production
• Higher DD&A expenses of $11.3 million versus $4.9 million in 2023
• Increased interest expense to $1.5 million from $1.0 million in 2023
• General and administrative expenses rose to $12.6 million from $12.0 million

Insights

Energy Sector Analyst

Empire Petroleum's Q4 and FY 2024 results present a mixed financial picture with operational progress counterbalanced by continued losses. The company reported $44 million in 2024 revenue (up from $40.1 million in 2023) alongside a $16.2 million net loss ($0.54 per share). While concerning, the improved Adjusted EBITDA of $0.7 million (versus -$2.4 million in 2023) indicates underlying operational improvements.

The 22% year-over-year increase in oil production demonstrates Empire's ability to grow output, but this growth comes with higher costs as evidenced by increased DD&A expenses ($11.3 million versus $4.9 million). The company attributes current losses primarily to temporary challenges with Enhanced Oil Recovery implementation in North Dakota, with resolution expected by Q2 2025.

Empire's fundraising success is noteworthy, with two oversubscribed rights offerings raising $30.7 million and a doubling of their credit facility to $20 million. These capital injections provide crucial liquidity for their drilling programs but also increase future financial obligations.

The provisional patent filing for hydrocarbon vaporization technology represents potential upside if successfully deployed, with initial tests showing a 700% production increase. However, implementation remains in early stages with final IP development expected over the next 3-4 months.

Year-end proved reserves of 9.2 MMBoe with a $98.4 million standardized measure provide a solid foundation, but the company's current production-to-reserves ratio indicates they'll need continued successful drilling programs to maintain long-term growth.

Financial Performance Analyst

Empire's financial results reflect the classic profile of an emerging producer investing heavily in growth initiatives while working toward profitability. The $16.2 million net loss must be contextualized against significant capital deployment ($42.2 million in 2024) primarily for North Dakota drilling operations, which temporarily depresses earnings while building future production capacity.

The positive Adjusted EBITDA of $0.7 million represents a meaningful improvement from 2023's -$2.4 million, indicating progress toward operational profitability when excluding non-cash items. This metric better reflects day-to-day operational performance than net income figures currently weighed down by DD&A costs that more than doubled to $11.3 million.

The company's capital structure has evolved substantially, with successful fundraising demonstrating investor confidence. The $30.7 million raised through oversubscribed rights offerings at $5.00-$5.05 per share indicates strong shareholder support, while the expanded $20 million credit facility provides additional financial flexibility.

Cash position remains tight at $2.3 million with $8.7 million in credit facility availability, which is adequate but not abundant relative to their capital needs. The discounted future cash flow value of $98.4 million from proved reserves ($156.4 million undiscounted) provides a reasonable asset base to support continued operations, though execution on EOR technology deployment will be crucial for translating these reserves into positive cash flow.

The reduction in lease operating expenses from $28.6 million to $27.5 million despite production growth shows positive cost control efforts, though G&A costs remain elevated at $14.23 per barrel equivalent.

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

FAQ

What were Empire Petroleum's (EP) production volumes in Q4 2024?

EP reported Q4-2024 net production of 2,356 Boe/d, including 1,581 Bbl/d of oil, representing a 22% increase in oil production compared to Q4-2023.

How much did Empire Petroleum (EP) raise through rights offerings in 2024?

EP completed two oversubscribed rights offerings in 2024: $20.7 million at $5.00 per share in Q2 and $10.0 million at $5.05 per share in Q4.

What were Empire Petroleum's (EP) year-end 2024 proved reserves?

EP's year-end 2024 proved reserves were 9.2 MMBoe, comprised of 76% crude oil, 13% NGLs, and 11% natural gas, with a standardized measure of $98.4 million.

What was Empire Petroleum's (EP) financial performance in full-year 2024?

EP reported total product revenue of $44.0 million and a net loss of $16.2 million ($0.54 per share), with Adjusted EBITDA of $0.7 million compared to -$2.4 million in 2023.

What results did Empire Petroleum (EP) achieve from its Enhanced Oil Recovery program?

EP's initial 30-day peak period showed more than a 700% increase in Starbuck production using temporary solutions, with final fabrication 30% complete.