EP Empire Petroleum Corporation

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 2024 third quarter results and progress on its North Dakota development program.

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”), and 19% natural gas;
• 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 subscription rights offering (“Rights Offering”) at $5.05 per share, which provides shareholders a chance to increase their equity stake in the Company;
  • Net proceeds of the Rights Offering will be used for previous, current and future drilling activity in North Dakota and New Mexico, workovers and recompletions in Texas, 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;
• 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, a net loss of $3.6 million, or $0.12 per diluted share and an adjusted net loss of $3.8 million, or $0.12 per diluted share.

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 Texas offer significant opportunities, and we are focused on expanding our operations by leveraging our historical knowledge and expertise in all areas.”

North Dakota – Williston Basin:

• 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 Mexico – Permian Basin:

• 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 have been, and continue to be, incurred, which may be directly related to the legal and regulatory actions discussed above; and
  • 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.

THIRD QUARTER 2024 FINANCIAL AND OPERATIONAL RESULTS

Q3-24

Q2-24

% Change2 Q3-24 vs. Q2-24

Q3-23

% Change2 Q3-24 vs. Q3-23

 

 

 

 

 

Net equivalent sales (Boe/d)

2,460

2,638

-7%

2,048

20%

Net oil sales (Bbls/d)

1,573

1,761

-11%

1,306

20%

Realized price ($/Boe)

$48.12

$53.26

-10%

$54.75

-12%

Product Revenue ($M)

$10,892

$12,788

-15%

$10,315

6%

Net Loss ($M)

($3,640)

($4,390)

17%

($2,748)

-32%

Adjusted Net Loss ($M)1

($3,829)

($2,905)

-32%

($1,462)

-162%

Adjusted EBITDA ($M)1

($56)

$1,727

NM

$134

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 200%.

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 20% primarily due to new wells completed in North Dakota as well as the acquisition of additional working interest in New Mexico.

Empire reported Q3-2024 total product revenue of $10.9 million versus $10.3 million in Q3-2023. Contributing to the increase was higher oil, natural gas and NGL sales volumes, substantially offset by lower realized oil and natural gas prices.

Q3-2024 lease operating expenses decreased to $6.7 million versus $7.1 million for Q3-2023, primarily due to increased production partially offset by lower workover expense of $1.4 million for Q3-2024 compared to $3.2 million for Q3-2023. Higher workover expense in 2023 was primarily related to work performed on wells in New Mexico to enhance and maintain production. These costs are part of the damages Empire will seek to recover under litigation.

Production and ad valorem taxes for Q3-2024 were $1.0 million versus $0.8 million in Q3-2023, as a result of higher product revenues.

Depreciation, Depletion, Amortization and Accretion (“DD&A”) for Q3-2024 was $3.1 million versus $1.2 million for Q3-2023. The increase in DD&A reflects higher production, the acquisition of additional working interest and the impact of the capitalized costs associated with new drilling activity in North Dakota.

General and administrative expenses, excluding share-based compensation expense, were $3.6 million, or $16.06 per Boe in Q2-2024 versus $2.6 million, or $13.70 per Boe in Q2-2023. The year-over-year increase was primarily due to an increase in salary and benefits associated with an increase in employee headcount to support New Mexico litigation and expanded operations.

Interest expense for Q3-2024 was $0.2 million compared to $0.2 million for Q3-2023, a slight decrease as result of lower cash interest expense from lower debt balances in Q3-2024 compared to Q3-2023.

Empire recorded a Q3-2024 net loss of $3.6 million, or $0.12 per diluted share, versus a Q3-2023 net loss of $2.7 million, or $0.12 per diluted share.

Adjusted EBITDA decreased to ($0.1) million for Q3-2024 compared to Adjusted EBITDA of $0.1 million in Q3-2023.

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For the nine months ended September 30, 2024, Empire invested approximately $38.3 million in capital expenditures, primarily related to the continued drilling and completions activity in North Dakota.

As of September 30, 2024, Empire had approximately $3.1 million in cash on hand and approximately $0.2 million available on its credit facility.

Empire received gross proceeds of $10.0 million at $5.05 per share following the close of the Rights Offering in November 2024.

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 its 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, 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 - $0.001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively

 

-

 

 

-

 

Common Stock - $0.001 Par Value, 190,000,000 Shares Authorized, 31,656,934 and 25,503,530 Shares Issued and Outstanding, Respectively

 

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 the United States, or GAAP. These non-GAAP financial measures include “Adjusted Net Income (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 income (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 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