Revenue from Oil and Gas Sales of $16.5
million, Net Income Reaches $5.5 million
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 second quarter of
2022, ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- Revenue from oil, natural gas, and natural gas liquids sales
was $16.5 million for the second quarter, triple the $4.9 million
revenue reported in the 2021 comparable period.
- Net income for the quarter was $5.5 million compared to a net
loss of $5.3 for the second quarter of 2021, a positive swing of
$10.8 million.
- The over 300% increase in revenue was due to successful
execution of the Company’s strategy to cost effectively produce
more volume combined with a favorable pricing environment in the
Company’s core operating areas.
- Average oil prices received for second quarter 2022 production
realized $109/barrel compared to $62/barrel in the second quarter
of 2021 and $91/barrel in the first quarter of 2022.
Second Quarter 2022 Production Accomplishments
- Increased average daily production by 87.5% to over 195,000 BOE
compared to 104,000 BOE in the second quarter of 2021.
- Empire’s assets continue to provide accretive cash flow and
increased scale with minimal incremental overhead.
Additional Second Quarter 2022 Highlights
- Closed the acquisition of operated and non-operated oil and
natural gas assets in the Landa Madison, Landa West Madison and
Birdbear Areas in North Dakota, all funded with cash on hand.
- Kicked off the Starbuck Field Enhancement Program, a $10
million investment with a targeted multiple increase in
production.
- Elected to participate in four non-op horizontal wells in the
Bakken to begin drilling in the third quarter directly offsetting
the Sundance Kid wells in Montana, which Empire participated in the
fourth quarter of 2021. The Sundance Kid four (4) well Bakken tests
have produced over 350,000 barrels of oil in approximately 220
production days, resulting in a production increase of
approximately 115 barrels of oil per day net to Empire's interests
in the wells.
- Added to the Russell 3000® and Russell 2000® Indexes in June
2022.
- Received approximately $3 million in new capital from the
successful exercise of legacy warrants.
- Appointed Vice Admiral Andrew Lewis to the Company’s Board of
Directors and to serve on the Board’s Audit Committee.
Six Months Financial Results Ended June 30, 2022
- Revenue from oil, natural gas, and natural gas liquids sales
was $29.7 million for the first six months of 2022 compared to $7.3
million in the 2021 comparable period, an increase of approximately
308%.
- Net income for the first six months ending June 30, 2022, was
$9.2 million compared to a net loss of $6.3 for the same period
ending June 30, 2021, a positive swing of $15.5 million.
- Realized oil pricing for the six months ended June 30, 2022,
was $101 per barrel, while realized pricing for the same period in
the prior year was $58, an increase in price of approximately
74%.
Management Comments
Tommy Pritchard, Chief Executive Officer of Empire, commented,
“The second quarter was a record period for Empire. We reported
revenue of $16.5 million, three-times higher than last year, driven
by increased production from Empire’s assets including the recent
acquisition of North Dakota properties that we completed during the
second quarter. Continued high commodity prices coupled with
optimization of marketing contracts contributed to higher operating
nets as well. We also launched our Starbuck Field enhancement
program, a $10 million capital investment with targeted multiple
increases in production and reserves that we expect to complete by
year-end."
Mike Morrisett, President of Empire, added, “In June, Empire’s
common stock was added to the Russell 3000® and Russell 2000®
Indexes, reflecting the increased liquidity and significant growth
of our market valuation since we uplisted to the NYSE American last
quarter. We also continued to strengthen our balance sheet with the
nearly $3 million we received from the conversion of all legacy
warrants. Empire continues to have strong resources, including over
$12 million in cash and a low debt level, to continue to execute
its strategic plans that are focused on organic growth and the
addition of incremental long-life and low-decline reserves that
generate strong cash flow.”
For Empire’s complete financial results for the three-month
period ended June 30, 2022, see the Company’s Quarterly Form 10-Q
filed with the Securities and Exchange Commission on August 15,
2022.
Teleconference and Webcast Information
Empire will hold a conference call on Tuesday, August 16, 2022
at 11:00am ET / 10:00am CT. To participate, please call 1 (877)
270-2148 at least 10 minutes prior to the start of the call and ask
to join the Empire Petroleum call.
A simultaneous webcast of the call may be accessed through the
Company's website, www.empirepetrocorp.com or at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=dVBLCHYE
A replay of the call will be available at 1 (877) 344-7529,
access code 867163, through August 23, 2022. The call will also be
available for replay on the Company’s website, Events &
Presentations - Empire Petroleum Corp for one year.
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 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, 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 –
EMPIRE PETROLEUM CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONS
Three Months Ended June 30, Six Months Ended June 30,
2022
2021
2022
2021
Revenue: Oil Sales
$
13,329,366
$
4,058,449
$
23,745,788
$
6,120,493
Gas Sales
1,446,435
372,178
2,431,858
681,062
Natural Gas Liquids Sales
1,763,546
425,480
3,496,064
473,392
Other
24,913
45,357
48,956
82,975
Net Realized and Unrealized Loss on Derivatives
(23,893
)
(182,034
)
(136,214
)
(539,949
)
Total Revenue
16,540,367
4,719,430
29,586,452
6,817,973
Costs and Expenses: Operating
5,503,850
2,312,932
10,696,532
3,730,942
Taxes - Production
1,137,841
418,681
2,039,079
588,513
Depletion, Depreciation & Amortization
455,799
565,333
890,245
745,873
Accretion of Asset Retirement Obligation
336,488
270,155
666,488
554,620
General and Administrative
3,282,452
3,220,101
5,736,096
4,126,149
Total Cost and Expenses
10,716,430
6,787,202
20,028,440
9,746,097
Operating Income (Loss)
5,823,937
(2,067,772
)
9,558,012
(2,928,124
)
Other Income and (Expense): Other Expense
(177,872
)
(435,584
)
(177,872
)
(435,584
)
Interest Expense
(111,785
)
(2,768,606
)
(222,433
)
(2,905,434
)
Net Income (Loss)
$
5,534,280
$
(5,271,962
)
$
9,157,707
$
(6,269,142
)
Net Income (Loss) per Common Share: Basic
$
0.27
$
(0.35
)
$
0.45
$
(0.54
)
Diluted
$
0.24
$
(0.35
)
$
0.41
$
(0.54
)
Weighted Average Number of Common Shares Outstanding, Basic
20,424,970
15,176,845
20,145,955
11,601,496
Diluted
23,294,723
15,176,845
22,233,826
11,601,496
EMPIRE PETROLEUM
CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
June 30, December 31,
2022
2021
ASSETS Current Assets:
Cash
$
12,436,535
$
3,611,871
Accounts Receivable
8,846,989
7,733,905
Unrealized Gain on Derivative Instruments
191,072
55,242
Inventory - Oil in Tanks
1,192,589
1,037,880
Prepaids
539,526
679,122
Total Current Assets
23,206,711
13,118,020
Property and Equipment: Oil and Natural Gas
Properties, Successful Efforts
50,426,477
46,914,326
Less: Accumulated Depreciation, Depletion and Impairment
(18,202,939
)
(17,525,918
)
32,223,538
29,388,408
Other Property and Equipment, Net
1,322,323
1,288,611
Total Property and Equipment, Net
33,545,861
30,677,019
Unrealized Gain on Derivative Instruments - Long Term
82,853
194,018
Sinking Fund
5,450,000
4,810,000
Utility and Other Deposits
1,805,608
1,290,594
Total Assets
$
64,091,033
$
50,089,651
LIABILITIES AND STOCKHOLDERS'
EQUITY Current Liabilities: Accounts Payable
$
3,324,959
$
4,329,535
Accrued Expenses
7,533,699
5,844,184
Current Portion of Lease Liability
209,320
180,105
Current Portion of Long-Term Notes Payable
1,406,081
1,700,663
Total Current Liabilities
12,474,059
12,054,487
Long-Term Notes Payable
6,806,043
6,914,101
Long Term Lease Liability
591,412
646,311
Asset Retirement Obligations
21,379,788
20,640,599
Total Liabilities
41,251,302
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,
21,443,293 and 19,840,648 Shares Issued and Outstanding,
Respectively 81,111
79,362
Additional Paid-in Capital 72,834,256
68,988,134
Accumulated Deficit (50,075,636)
(59,233,343
)
Total Stockholders' Equity 22,839,731
9,834,153
Total Liabilities and Stockholders' Equity
$
64,091,033
$
50,089,651
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version on businesswire.com: https://www.businesswire.com/news/home/20220816005358/en/
Empire Petroleum Corporation: Tommy Pritchard, CEO Mike
Morrisett, President 539-444-8002 info@empirepetrocorp.com
Investor Relations Stephanie Prince PCG Advisory
646-863-6341
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