Revenue from Oil and Gas Sales at $13.1 million
and Net Income $3.6 million
Recent Acquisitions Add Immediate Accretive
Cash Flow & Increased Scale with Minimal Incremental
Overhead
Empire Petroleum (NYSE American: EP) ("Empire" or the
"Company"), an oil and gas company with current producing assets in
Texas, Louisiana, North Dakota, Montana and New Mexico, today
announced the Company’s financial results for the first quarter of
2022, ended March 31, 2022.
Recent Highlights
First Quarter 2022 Financial Results
- Revenue from oil, natural gas, and natural gas liquids sales
was $13.1 million for the first quarter compared to $2.4 million in
the 2021 comparable period.
- Net income for the quarter was $3.62 million compared to a net
loss of $997,180 for the first quarter of 2021. This growth is due
to the Company’s transformative acquisition of the New Mexico
assets in May 2021, successful execution of the Company’s mission
to enhance the production of its existing wells, new production
from four non-operated wells in North Dakota, and a favorable
pricing environment.
First Quarter 2022 Production Accomplishments
- Despite historically adverse weather conditions during Q1 in
North Dakota, Montana, and New Mexico, Empire exceeded its internal
production forecasts due to previous work performed on leases that
led to increased volumes, even with fewer production days due to
weather.
- Average oil prices received for first quarter production
realized $91.25/barrel compared to $51.56/barrel in the first
quarter of 2021 and $74.66/barrel in the fourth quarter of
2021
- Subsequent to quarter end, the Company completed the
acquisition of:
- Operated and non-operated oil and natural gas assets in the
Landa Madison and Landa West Madison Units in Bottineau County,
North Dakota
- Operated and non-operated oil and natural gas assets in the
Birdbear Area in Golden Valley and Billings County, North
Dakota
- Additional working interests in existing areas of operation in
North Dakota, Montana and New Mexico.
- These assets are expected to provide immediate accretive cash
flow and increased scale with minimal incremental overhead.
Appointment of New Board Member
- On April 30, 2022, Vice Admiral Andrew Lewis was appointed to
the Company’s Board of Directors. He will serve on the Board’s
Audit Committee.
- Vice Admiral Lewis has had an illustrious 36-year military
career in the United States Navy, serving as the Deputy Chief of
Naval Operations for Operations, Plans and Strategy, vice director
for Operations, and director of Fleet Training at Fleet Forces
Command. Following his retirement in 2021, Lewis joined Business
Executives for National Security as Senior Vice President of Policy
and Projects.
- “Empire Petroleum has built a strong foundation and platform
for growth, I look forward to helping the Company achieve its
goals,” said Vice Admiral Lewis.
Management Comments
Tommy Pritchard, Chief Executive Officer of Empire, commented,
“Empire had a great first quarter, highlighted by our uplisting to
the NYSE American, which caps off Empire’s transformation into a
diversified, low-leverage, free cash flow conventional oil and gas
operator. With prices high and production growing from acquisitions
and our return-to-production well strategy, the outlook for the
year is strong as we remain focused on organic growth while
securing additional incremental long-life and low-decline reserves
that generate strong cash flow.”
“We reported total revenue of over $13 million in the first
quarter, 400% higher than last year, and driven by a nearly 300%
increase in production. Net income reached $3.6 million, an
increase of over 400% from the same period last year. Our most
recent acquisitions are a good example of our strategy that is
expected to provide immediate accretive cash flow and increased
scale with minimal incremental overhead,” continued Mr.
Pritchard.
Mike Morrisett, President of Empire, added, “We believe that our
low total debt balance collateralized only by our North Dakota,
Montana and Louisiana assets, combined with the $5.4 million of
cash on our balance sheet and the cash flow that the Company is
generating, puts us in a strong position to support organic growth
and additional bolt-on acquisitions that meet our strict criteria.
For the moment, we remain unhedged on the majority of our
production, which is represented by our debt free assets in New
Mexico.”
For Empire’s complete financial results for the three-month
period ended March 31, 2022, see the Company’s Quarterly Form 10-Q
filed with the Securities and Exchange Commission on May 16,
2022.
About Empire Petroleum
Empire Petroleum Corporation is a publicly traded, Tulsa-based
oil and gas company with current producing assets in Texas,
Louisiana, North Dakota, Montana and New Mexico. Management is
focused on 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, 2021, and its other filings
with the SEC. Readers and investors are cautioned that the
Company’s actual results may differ materially from those described
in the forward-looking statements due to a number of factors,
including, but not limited to, the Company’s ability to acquire
productive oil and/or gas properties or to successfully drill and
complete oil and/or gas wells on such properties, general economic
conditions both domestically and abroad, and other risks and
uncertainties related to the conduct of business by the
Company.
-Tables Follow -
Income Statement
Three Months Ended March 31,
2022
2021
Revenue:
Oil Sales
$
10,416,422
$
2,058,479
Gas Sales
985,423
376,549
Natural Gas Liquids Sales
1,732,518
-
Other
24,043
21,430
Net Realized and Unrealized Loss on
Derivatives
(112,321
)
(357,915
)
Total Revenue
13,046,085
2,098,543
Costs and Expenses:
Operating
5,190,946
1,418,010
Taxes - Production
901,238
169,832
Depletion, Depreciation &
Amortization
434,446
180,540
Accretion of Asset Retirement
Obligation
330,000
284,465
General and Administrative
2,455,380
906,048
Total Cost and Expenses
9,312,010
2,958,895
Operating Income (Loss)
3,734,075
(860,352
)
Other Income and (Expense):
Interest Expense
(110,648
)
(136,828
)
Net Income (Loss)
$
3,623,427
$
(997,180
)
Net Income (Loss) per Common Share:
Basic
$
0.18
$
(0.13
)
Dilued
$
0.15
$
(0.13
)
Weighted Average Number of Common Shares
Outstanding,
Basic
19,866,687
7,954,771
Diluted
24,018,453
7,954,771
Balance Sheet
March 31,
December 31,
2022
2021
ASSETS
Current Assets:
Cash
$
5,353,609
$
3,611,871
Accounts Receivable
8,491,371
7,733,905
Unrealized Gain on Derivative
Instruments
77,907
55,242
Inventory - Oil in Tanks
975,678
1,037,880
Prepaids
542,112
679,122
Total Current Assets
15,440,677
13,118,020
Property and Equipment:
Oil and Natural Gas Properties, Successful
Efforts
47,338,977
46,914,326
Less: Accumulated Depreciation, Depletion
and Impairment
(17,926,748
)
(17,525,918
)
29,412,229
29,388,408
Other Property and Equipment, Net
1,224,319
1,288,611
Total Property and Equipment, Net
30,636,548
30,677,019
Unrealized Gain on Derivative Instruments
- Long Term
142,292
194,018
Sinking Fund
5,290,000
4,810,000
Utility and Other Deposits
1,309,281
1,290,594
Total Assets
$
52,818,798
$
50,089,651
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable
$
2,675,098
$
4,329,535
Accrued Expenses
6,284,655
5,844,184
Current Portion of Lease Liability
181,029
180,105
Current Portion of Long-Term Notes
Payable
1,553,369
1,700,663
Total Current Liabilities
10,694,151
12,054,487
Long-Term Notes Payable
6,620,130
6,914,101
Long Term Lease Liability
602,554
646,311
Asset Retirement Obligations
20,970,599
20,640,599
Total Liabilities
38,887,434
40,255,498
Stockholders' Equity:
Series A Preferred Stock - $.001 Par
Value, 10,000,000 Shares Authorized,
6 and 0 Shares Issued and Outstanding,
Respectively
-
-
Common Stock - $.001 Par Value 190,000,000
Shares Authorized,
19,889,398 and 19,840,648 Shares Issued
and Outstanding, Respectively
79,557
79,362
Additional Paid-in Capital
69,461,723
68,988,134
Accumulated Deficit
(55,609,916
)
(59,233,343
)
Total Stockholders' Equity
13,931,364
9,834,153
Total Liabilities and Stockholders'
Equity
$
52,818,798
$
50,089,651
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220517005355/en/
Empire Petroleum Corporation: Tommy Pritchard, CEO Mike
Morrisett, President 539-444-8002 info@empirepetrocorp.com
Empire Petroleum (AMEX:EP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Empire Petroleum (AMEX:EP)
Historical Stock Chart
From Jul 2023 to Jul 2024