EP Empire Petroleum Corporation

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

_________________

 

FORM 8-K

_________________

Current Report

Pursuant To Section 13 or 15 (d) of the Securities Exchange Act of 1934

 

 

Date of Report (date of earliest event reported):

 

 

NOVEMBER 14, 2024

_______________________________

EMPIRE PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

_______________________________

 

Delaware	001-16653	73-1238709
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

 

2200 S. Utica Place, Suite 150, Tulsa, Oklahoma   74114

(Address of Principal Executive Offices)       (Zip Code)

 

Registrant’s telephone number, including area code:   (539) 444-8002

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.001 par value	EP	NYSE American

  

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02.

Results of Operations and Financial Condition.

On November 14, 2024, Empire Petroleum Corporation (the “Company”) issued a press release announcing its financial and operating results for the third quarter 2024. A copy of the press release is furnished herewith as Exhibit 99.

 

This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

 

 

Item 9.01.

Financial Statements and Exhibits.

(d)		Exhibits.
The following exhibits are filed or furnished herewith.

Exhibit Number	Description
99	Press Release of Empire Petroleum Corporation dated November 14, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

  

 

 

 

 

  

 

  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

	EMPIRE PETROLEUM CORPORATION
Date:    November 15, 2024	By:	/s/ Michael R. Morrisett
		Michael R. Morrisett President and Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

3

EXHIBIT 99

 

  

 

 

 

Empire Petroleum Reports Q3 2024 Results and Provides Strategic Operational Updates

 

TULSA, OK – (November 14, 2024) – 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

o

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;

 

o

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;

 

o

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;

 

o

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

 

o

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:

o

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;

o

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;

o

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;

o

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;

o

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;

o

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;

o

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:

o

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.

 

 

Mike Morrisett		Kali Carter
President & CEO		Communications & Investor Relations Manager
539-444-8002		918-995-5046
Info@empirepetrocorp.com		IR@empirepetrocorp.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

(Unaudited)

 

		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

 

 

 

 

 

 

 

10

v3.24.3

Cover	Nov. 14, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 14, 2024
Entity File Number	001-16653
Entity Registrant Name	EMPIRE PETROLEUM CORPORATION
Entity Central Index Key	0000887396
Entity Tax Identification Number	73-1238709
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2200 S. Utica Place
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	Tulsa,
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74114
City Area Code	539
Local Phone Number	444-8002
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false

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