false 0000887396 0000887396 2024-08-14 2024-08-14 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

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):

 

 

AUGUST 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 $.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 August 14, 2024, Empire Petroleum Corporation (the “Company”) issued a press release announcing its financial and operating results for the second 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 August 14, 2024.

 

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

  

 

  

 

2

 

  

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:     August 15, 2024 By:  /s/ Michael R. Morrisett  
 

Michael R. Morrisett

President and Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

EXHIBIT 99

 

 

  

Empire Petroleum Reports Q2 2024 Results and Provides an Update for North Dakota Drilling Program

 

TULSA, OK – (August 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 second quarter results and progress on its North Dakota development drilling program.

 

SECOND QUARTER 2024 HIGHLIGHTS

oQ2-2024 net production volumes rose 20% sequentially and 24% year-over-year to 2,638 barrels of oil equivalent per day (“Boe/d”);
oAverage daily oil sales volumes grew by 23% sequentially and 25% year-over-year with largest increase from North Dakota operations
o67% oil, 16% natural gas liquids (“NGLs”), and 17% natural gas;

 

oCompletion of the first stage of the North Dakota horizontal wells for Enhanced Oil Recovery (EOR) development in Q2-2024 and the EOR infrastructure to be completed by end of Q3-2024;

 

oLargest production increase was from the Starbuck field, an increase of ~500% from initial purchase;
oIncreased year-over-year volumes by ~130% and quarter-over-year volumes by ~45%
oIncrease does not include the completion of drilling program or effects on production from EOR activities starting at the end of Q3-2024;

 

oCommenced conformance improvements in Empire’s New Mexico assets, including an upcoming pilot drilling program; and

 

oReported Q2-2024 total product revenue of $12.8 million, a net loss of $4.4 million, or $0.15 per share and an Adjusted Net Loss of $2.9 million, or $0.10 per share.
oGenerated Q2-2024 Adjusted EBITDA of $1.7 million versus $0.2 million in Q2-2023

 

2024 OUTLOOK

Phil Mulacek, Chairman, commented, “Recent drilling and development data from our North Dakota assets reinforce our confidence in achieving significant long-term production gains. We have successfully enhanced well economics, reducing costs by approximately 50% to $2.4 million through standard directional drilling, compared to $4.8 million with Coiled Tubing Drilling (CTD). Directional drilling has also enabled us to nearly double the hole diameter, increasing the flow area by 66% and extending lateral well lengths by around 150% compared to early CTD wells. We anticipate further production improvements in North Dakota throughout 2024 and 2025 by integrating insights from our seismic surveys and completing our EOR infrastructure. Our objective is to continue boosting production in our Starbuck field through Q1 2025, with the potential for additional increases following the completion of our EOR development, guided by our 3D seismic data.”

 

Mike Morrisett, President and CEO, added, “We have made significant strides in North Dakota, resulting in notable production enhancements and shaping our development strategy. Our focus will be on completing the majority of North Dakota's development efforts in the latter half of 2024. Following this, we plan to shift our attention to our Permian assets in New Mexico’s Lea County, where we see even greater potential for production growth. We are advancing our technical review and planning for these fields and aim to initiate a pilot drilling program in 2025. Meanwhile, we remain dedicated to achieving continued improvements in Lease Operating Expenses (LOE) through the end of 2024 and into 2025.”

 

1 

 

 

North Dakota – Williston Basin:
Empire expects North Dakota development efforts to drive production improvements; targeted to return operations to positive cash flow and support New Mexico exploration and development in 2025 and beyond. The Company’s goal to see a significant base production increase compared to when the assets were purchased is still the objective through Q1-2025;

o100% of the first stage of EOR horizontal wells were completed in Q2-2024 and the first stage of the EOR infrastructure to be completed in Q3-2024;
oSecond stage of the EOR program and infrastructure to be completed in 2025-2026;
oNew horizontal laterals will be completed for Starbuck and other fields the Company operates within North Dakota;
oProduction anticipated to ramp in second half of 2024 with an additional four wells coming online and EOR injection commencing;
oDrill core data, currently being evaluated, has confirmed new zones of potential development; and
o3D & 2D processing to enhance infield development on the Company’s Starbuck assets and apply knowledge to other Company assets in order to expand the development footprint;
oCompletion of the 3D & 2D seismic survey in May 2024
oExpect data processing and analysis to be completed by end of Q3-2024;

 

New Mexico – Permian Basin:

oContinued data and analytics on historical water injection profiles across all injectors in Empire’s waterflood units;
oStarted conformance improvements on wells to evaluate the response before implementation on the unit, then a phased in approach;
oCommenced seeing well performance on production;
oReduced water injection on wells;
oContinued upgrading high potential recompletion opportunities; and
oContinue the legal and regulatory actions against third parties trespassing on the NM water floods.

 

 

SECOND QUARTER 2024 FINANCIAL AND OPERATIONAL RESULTS

 

   Q2-24   Q1-24   % Change2
Q2-24 vs. Q1-24
   Q2-23   % Change2
Q2-24 vs. Q2-23
 
                     
Net equivalent sales (Boe/d)   2,638    2,207    20%    2,135    24% 
Net oil sales (Bbls/d)   1,761    1,437    23%    1,411    25% 
Realized price ($/Boe)   53.26    50.96    5%    50.22    6% 
Product Revenue ($M)   12,788    10,235    25%    9,758    31% 
Net Income (Loss) ($M)   (4,390)   (3,975)   -10%    (2,465)   -78% 
Adjusted Net Income (Loss) ($M)1   (2,905)   (3,866)   25%    (2,398)   -21% 
Adjusted EBITDA ($M)1   1,727    (729)   NM    171    NM 

________________________________

 

1 Adjusted Net Income (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.

 

 

 

 

 

 

2 

 

 

 

Net sales volumes for Q2-2024 were 2,638 Boe/d, including 1,761 barrels of oil per day; 435 barrels of NGLs per day, and 2,651 thousand cubic feet per day (“Mcf/d”) or 442 Boe/d of natural gas. Quarter-over-quarter net oil sales volumes increase of 23% primarily due to new wells completed in North Dakota.

 

Empire reported Q2-2024 total product revenue of $12.8 million versus $9.8 million in Q2-2023. Contributing to the increase was higher oil sales volumes in North Dakota and higher realized oil and NGL prices.

 

Q2-2024 lease operating expenses increased to $7.5 million versus $7.1 million for Q2-2023, primarily due to increased production partially offset by lower workover expense of $1.6 million for Q2-2024 compared to $2.9 million for Q2-2023. Higher workover expense in 2023 was primarily related to work performed on wells in New Mexico to enhance production.

 

Production and ad valorem taxes for Q2-2024 were $1.1 million versus $0.7 million in Q2-2023, as a result of higher product revenues.

 

Depreciation, Depletion, Amortization and Accretion (“DD&A”) for Q2-2024 was $3.2 million versus $1.1 million for Q2-2023. 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 $2.4 million, or $9.80 per Boe in Q2-2024 versus $1.9 million, or $9.75 per Boe in Q2-2023. The year-over-year increase was primarily due to an increase in salaries and benefits associated with an increase in employee headcount to support expanded operations.

 

Interest expense for Q2-2024 was $0.7 million compared to $0.2 million for Q2-2023.

 

Empire recorded a Q2-2024 net loss of $4.4 million, or $0.15 per diluted share, versus a Q2-2023 net loss of $2.5 million, or $0.11 per diluted share.

 

Adjusted EBITDA improved to $1.7 million for Q2-2024 compared to Adjusted EBITDA of $0.2 million in Q2-2023.

 

 

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For the six months ended June 30, 2024, Empire invested approximately $26 million in capital expenditures, primarily reflecting the continued drilling and completions activity in North Dakota.

 

As of June 30, 2024, Empire had approximately $9.3 million in cash on hand and approximately $0.7 million available on its credit facility.

 

Empire received gross proceeds of approximately $20.66 million at $5.00 per share following the close of the Rights Offering in April 2024. The Company converted the Promissory Note with Energy Evolution Fund, $5 million at 7%, to 800,000 shares of common stock.

 

 

 

 

 

 

3 

 

 

UPDATED PRESENTATION

An updated Company presentation will be posted by Friday, August 23, 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, 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.

 

CONTACTS

 

Empire Petroleum Corporation

Mike Morrisett

President & CEO

539-444-8002

Info@empirepetrocorp.com

 

Kali Carter

Communications & Investor Relations Manager

918-995-5046

IR@empirepetrocorp.com

 

 

 

 

 

 

 

 

 

 

4 

 


EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Statements of Operations

(Unaudited)

           

 

   Three Months Ended   YTD 
   June 30,   March 31,   June 30,   June 30, 
   2024   2024   2023   2024   2023 
Revenue:                    
Oil Sales  $12,287,272   $9,441,964   $9,147,611   $21,729,236   $18,086,326 
Gas Sales   (115,833)   377,130    248,686    261,297    904,721 
NGL Sales   617,029    416,211    362,181    1,033,240    867,135 
Total Product Revenues   12,788,468    10,235,305    9,758,478    23,023,773    19,858,182 
Other   11,227    10,086    18,361    21,313    37,725 
Loss on Commodity Derivatives   (1,453)   (858,150)   (66,657)   (859,603)   (133,480)
Total Revenue   12,798,242    9,387,241    9,710,182    22,185,483    19,762,427 
                          
Costs and Expenses:                         
Lease Operating Expense   7,542,685    7,387,423    7,099,000    14,930,108    13,619,163 
Production and Ad Valorem Taxes   1,065,718    833,447    721,275    1,899,165    1,479,389 
Depletion, Depreciation & Amortization   2,676,981    1,490,130    711,042    4,167,111    1,333,531 
Accretion of Asset Retirement Obligation   492,449    485,349    405,361    977,798    806,636 
General and Administrative Expense:                         
General and Administrative   2,354,080    2,879,037    1,894,204    5,233,117    4,917,483 
Stock-Based Compensation   591,635    710,002    1,180,806    1,301,637    2,130,445 
Total General and Administrative Expense   2,945,715    3,589,039    3,075,010    6,534,754    7,047,928 
                          
Total Cost and Expenses   14,723,548    13,785,388    12,011,688    28,508,936    24,286,647 
                          
Operating Income (Loss)   (1,925,306)   (4,398,147)   (2,301,506)   (6,323,453)   (4,524,220)
                          
Other Income and (Expense):                         
Interest Expense   (735,220)   (315,049)   (184,887)   (1,050,269)   (422,186)
Other Income (Expense)   (1,729,245)   738,000    21,484    (991,245)   21,906 
Income (Loss) before Taxes   (4,389,771)   (3,975,196)   (2,464,909)   (8,364,967)   (4,924,500)
                          
Income Tax (Provision) Benefit                    
                          
Net Income (Loss)  $(4,389,771)  $(3,975,196)  $(2,464,909)  $(8,364,967)  $(4,924,500)
                          
Net Income (Loss) per Common Share:                         
Basic  $(0.15)  $(0.15)  $(0.11)  $(0.30)  $(0.22)
Diluted  $(0.15)  $(0.15)  $(0.11)  $(0.30)  $(0.22)
Weighted Average Number of Common Shares Outstanding:                         
Basic   29,839,853    25,688,427    22,105,704    27,752,816    22,101,264 
Diluted   29,839,853    25,688,427    22,105,704    27,752,816    22,101,264 

 

 

 

5 

 

EMPIRE PETROLEUM CORPORATION

Condensed Operating Data

(Unaudited)

             

 

   Three Months Ended   Six Months Ended 
   June 30,   March 31,   June 30,   June 30, 
   2024   2024   2023   2024   2023 
                     
Net Sales Volumes:                         
Oil (Bbl)   160,283    130,760    128,413    291,043    248,670 
Natural gas (Mcf)   241,242    211,820    211,293    453,063    442,511 
Natural gas liquids (Bbl)   39,612    34,785    30,678    74,397    70,434 
Total (Boe)   240,102    200,848    194,306    440,951    392,856 
                          
Average daily equivalent sales (Boe/d)   2,638    2,207    2,135    2,423    2,170 
                          
Average Price per Unit:                         
Oil ($/Bbl)  $76.66   $72.21   $71.24   $74.66   $72.73 
Natural gas ($/Mcf)  $(0.48)  $1.78   $1.18   $0.58   $2.04 
Natural gas liquids ($/Bbl)  $15.58   $11.97   $11.81   $13.89   $12.31 
Total ($/Boe)  $53.26   $50.96   $50.22   $52.21   $50.55 
                          
Operating Costs and Expenses per Boe:                         
Lease operating expense  $31.41   $36.78   $36.54   $33.86   $34.67 
Production and ad valorem taxes  $4.44   $4.15   $3.71   $4.31   $3.77 
Depreciation, depletion, amortization and accretion  $13.20   $9.84   $5.75   $11.67   $5.45 
General & administrative expense:                         
General & administrative expense  $9.80   $14.33   $9.75   $11.87   $12.52 
Stock-based compensation  $2.46   $3.54   $6.08   $2.95   $5.42 
Total general & administrative expense  $12.27   $17.87   $15.83   $14.82   $17.94 

 

 

 

 

 

6 

 

EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Balance Sheets

 

   June 30,   December 31, 
   2024   2023 
         
ASSETS          
Current Assets:          
Cash  $9,257,773   $7,792,508 
Accounts Receivable   8,783,051    8,354,636 
Derivative Instruments       406,806 
Inventory   1,451,195    1,433,454 
Prepaids   788,073    757,500 
   Total Current Assets   20,280,092    18,744,904 
           
Property and Equipment:          
Oil and Natural Gas Properties, Successful Efforts   123,509,574    93,509,803 
Less: Accumulated Depreciation, Depletion and Impairment   (27,040,862)   (22,996,805)
Total Oil and Gas Properties, Net   96,468,712    70,512,998 
Other Property and Equipment, Net   1,625,870    1,883,211 
Total Property and Equipment, Net   98,094,582    72,396,209 
           
Other Noncurrent Assets   1,570,531    1,474,503 
           
TOTAL ASSETS  $119,945,205   $92,615,616 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities:          
Accounts Payable  $13,641,835   $16,437,219 
Accrued Expenses   8,105,002    7,075,302 
Derivative Instruments   189,468     
Current Portion of Lease Liability   425,528    432,822 
Current Portion of Note Payable - Related Party   1,060,004    1,060,004 
Current Portion of Long-Term Debt   339,825    44,225 
   Total Current Liabilities   23,761,662    25,049,572 
           
Long-Term Debt   8,523,756    4,596,775 
Long-Term Lease Liability   338,953    544,382 
Asset Retirement Obligations   28,649,500    27,468,427 
Total Liabilities   61,273,871    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, 31,375,375 and 25,503,530 Shares Issued and Outstanding, Respectively   90,897    85,025 
Additional Paid-in-Capital   131,564,222    99,490,253 
Accumulated Deficit   (72,983,785)   (64,618,818)
Total Stockholders' Equity   58,671,334    34,956,460 
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $119,945,205   $92,615,616 

 

 

 

 

7 

 

EMPIRE PETROLEUM CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

       

 

   Three Months Ended   Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2024   2024   2023   2024   2023 
                     
Cash Flows From Operating Activities:                         
Net Income (Loss)  $(4,389,771)  $(3,975,196)  $(2,464,909)  $(8,364,967)  $(4,924,500)
                          
Adjustments to Reconcile Net Income (Loss) to Net Cash                         
Provided By Operating Activities:                         
Stock Compensation and Issuances   591,635    710,002    1,180,806    1,301,637    2,130,445 
Amortization of Right of Use Assets   135,734    135,733    87,560    271,467    163,785 
Depreciation, Depletion and Amortization   2,676,981    1,490,130    711,042    4,167,111    1,333,531 
Accretion of Asset Retirement Obligation   492,449    485,349    405,361    977,798    806,636 
(Gain) Loss on Commodity Derivatives   1,453    858,150    66,657    859,603    133,480 
Settlement on or Purchases of Derivative Instruments   (252,630)   (10,700)       (263,330)   (41,187)
(Gain) Loss on Financial Derivatives   1,736,000    (738,000)       998,000     
Amortization of Debt Discount on Convertible Notes   500,382            500,382     
Gain on Extinguishment of Debt   (16,611)           (16,611)    
Change in Operating Assets and Liabilities:                         
Accounts Receivable   (1,694,690)   1,064,629    (1,189,280)   (630,061)   (2,039,189)
Inventory, Oil in Tanks   346,147    (363,888)   155,057    (17,741)   (265,802)
Prepaids, Current   462,599    (2,398)   618,737    460,201    708,549 
Accounts Payable   (2,484,238)   4,339,024    (1,587,886)   1,854,786    (1,697,939)
Accrued Expenses   668,416    361,284    (464,538)   1,029,700    (3,642,305)
Other Long Term Assets and Liabilities   (574,966)   (446,430)   (436,523)   (1,021,396)   (650,134)
Net Cash Provided By (Used In) Operating Activities   (1,801,110)   3,907,689    (2,917,916)   2,106,579    (7,984,630)
                          
Cash Flows from Investing Activities:                         
Deposit for Acquisition of Oil ad Natural Gas Properties           (670,000)       (670,000)
Additions to Oil and Natural Gas Properties   (13,202,315)   (16,940,873)   (917,843)   (30,143,188)   (3,127,847)
Purchase of Other Fixed Assets   (88,868)   (31,023)   (125,866)   (119,891)   (153,036)
Cash Paid for Right of Use Assets   (125,237)   (125,238)   (117,560)   (250,475)   (204,105)
Sinking Fund Deposit                   2,779,000 
Net Cash Provided By (Used In) Investing Activities   (13,416,420)   (17,097,134)   (1,831,269)   (30,513,554)   (1,375,988)
                          
Cash Flows from Financing Activities:                         
Borrowings on Credit Facility       3,950,000        3,950,000     
Proceeds from Promissory Note       5,000,000        5,000,000     
Proceeds from Rights offering (net of transaction costs)   20,511,529            20,511,529     
Principal Payments of Debt   (156,594)   (61,598)   (719,838)   (218,192)   (1,288,974)
Net Proceeds from Warrants Exercises   628,903            628,903     
Net Cash Provided By (Used In) Financing Activities   20,983,838    8,888,402    (719,838)   29,872,240    (1,288,974)
                          
Net Change in Cash   5,766,308    (4,301,043)   (5,469,023)   1,465,265    (10,649,592)
                          
Cash - Beginning of Period   3,491,465    7,792,508    6,763,873    7,792,508    11,944,442 
                          
Cash - End of Period  $9,257,773   $3,491,465   $1,294,850   $9,257,773   $1,294,850 

 

 

8 

 

 

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   Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2024   2024   2023   2024   2023 
                     
Net Income (Loss)  $(4,389,771)  $(3,975,196)  $(2,464,909)  $(8,364,967)  $(4,924,500)
                          
Adjusted for:                         
(Gain) loss on commodity derivatives   1,453    858,150    66,657    859,603    133,480 
Settlement on or purchases of derivative instruments   (252,630)   (10,700)       (263,330)   (41,187)
Loss on financial derivatives   1,736,000    (738,000)       998,000     
CEO severance (including employer taxes)                   374,820 
                          
Adjusted Net Income (Loss)  $(2,904,948)  $(3,865,746)  $(2,398,252)  $(6,770,694)  $(4,457,387)
                          
Diluted Weighted Average Shares Outstanding   29,839,853    25,688,427    22,105,704    27,752,816    22,101,264 
                          
Adjusted Net Income (Loss) Per Share  $(0.10)  $(0.15)  $(0.11)  $(0.24)  $(0.20)

 

 

 

 

9 

 

  

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   Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2024   2024   2023   2024   2023 
                     
Net Income (Loss)  $(4,389,771)  $(3,975,196)  $(2,464,909)  $(8,364,967)  $(4,924,500)
                          
Add Back:                         
Interest expense   735,220    315,049    184,887    1,050,269    422,186 
DD&A   2,676,981    1,490,130    711,042    4,167,111    1,333,531 
Accretion   492,449    485,349    405,361    977,798    806,636 
Amortization of right of use assets   135,734    135,733    87,560    271,467    163,785 
Income taxes                    
EBITDA  $(349,387)  $(1,548,935)  $(1,076,059)  $(1,898,322)  $(2,198,362)
                          
Adjustments:                         
Stock based Compensation   591,635    710,002    1,180,806    1,301,637    2,130,445 
(Gain) loss on commodity derivatives   1,453    858,150    66,657    859,603    133,480 
Settlement on or purchases of derivative instruments   (252,630)   (10,700)       (263,330)   (41,187)
(Gain) Loss on financial derivatives   1,736,000    (738,000)       998,000     
CEO severance (including employer taxes)                   374,820 
                          
Adjusted EBITDA  $1,727,071   $(729,483)  $171,404   $997,588   $399,196 

 

 

 

 

 

 

 

 

10

 

 

 

v3.24.2.u1
Cover
Aug. 14, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 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

Empire Petroleum (AMEX:EP)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Empire Petroleum Charts.
Empire Petroleum (AMEX:EP)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Empire Petroleum Charts.