Empire Petroleum Reports Financial Results for Second Quarter 2026 and Provides Operational Update

TULSA, Okla.--( BUSINESS WIRE)--Empire Petroleum Corporation (NYSE American: EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today announced financial results for second quarter 2026 and an update on current operations.

SECOND QUARTER 2026 HIGHLIGHTS

2026 OUTLOOK

“Energy markets remain defined by persistent demand for reliable natural gas supply and by the growing importance of assets capable of delivering scalable, repeatable development,” said Phil Mulacek, Chairman of the Board of Empire. “In Texas, our team pushed the technical and mechanical achievements to a new record of 21,006 feet with modern well logs and sidewall cores. We are now holding a solid record as a microcap energy company with drilling, motors, hole-openers, logs, and sidewall cores in temperatures of 434 degrees Fahrenheit. With the pre-investment in gas compression capacity to support higher sustained production volumes, we can begin the completion of the new deeper wells. We remain focused on disciplined execution and on positioning each asset to benefit from stronger market prices and forward development conditions. I am confident that the long-term need for dependable domestic energy will continue to support value creation for Empire and our shareholders.”

Mike Morrisett, President & CEO, added, “Empire’s focus in the second quarter was about converting ongoing project work into measurable operational progress and turning the corner financially. In Texas, additional wells were brought online and system upgrades continued to improve deliverability, supporting steady increases in oil and gas volumes as the program grows. In North Dakota, we advanced a key retrofit under our second-generation thermal recovery program and continued targeted well work that positions the field for additional oil production as thermal operations progress. Our recent acquisitions provide us with the ability to access acreage that was previously off-limits, creating new opportunities for development. In Louisiana, drilling and logging across the three-well program confirmed substantial sand development and reinforced the scale of the resource, giving us a clearer view of the field’s potential as we prepare for completions and revenue later this year. Each asset is moving forward in sequence, and the recent work our team has completed strengthens our operating foundation as we prepare for the next phases of development.”

Texas – East Texas Basin & Louisiana

North Dakota – Williston Basin

New Mexico – Permian Basin

SECOND QUARTER 2026 FINANCIAL AND OPERATIONAL RESULTS

1,825

1,880

-3

2,357

-23

1,278

1,248

1,493

-14

41.33

45.41

-9

40.78

11,107

7,684

8,747

1,858

)

6,642

)

5,056

)

2,375

)

3,470

)

5,231

)

365

730

)

150

1,181

)

131

1 Adjusted net loss 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 Q2-2026 Realized pricing includes the effect of net settlements on derivatives.

Net sales volumes for Q2-2026 were 1,825 Boe/d, including 1,278 barrels of oil per day; 320 barrels of NGLs per day, and 1,363 thousand cubic feet per day (“Mcf/d”) or 227 Boe/d of natural gas. Oil sales volumes for Q2-2026 decreased slightly compared to Q2-2025 primarily due to natural decline and certain wells within North Dakota that were down for Empire’s steam unit performance enhancement projects which began in Q2-2026.

Empire reported Q2-2026 total product revenue of $11.1 million versus $8.7 million in Q2-2025. The increase is primarily due to higher realized oil pricing from general market pricing trends partially offset by lower production volumes period over period.

Realized oil prices for the three months ended June 30, 2026, were $58.26 per barrel, while realized prices for the same period in the prior year were $58.92 per barrel, a decrease of approximately 1% including the impact of the Company’s hedging contracts. The average oil price per barrel excluding the effect of net settlements received (paid) for the three months ended June 30, 2026, was $94.72. There were no impacts to prior period pricing due to no open hedging contracts during the period

Lease operating expenses in Q2-2026 decreased to $5.0 million versus $6.4 million for Q2-2025, primarily due to lower production and efforts by the Company to reduce overall operating costs. The decrease was partially offset by an increase in workover expense period over period primarily in New Mexico. Workover expenses were approximately $0.7 million in Q2-2026 compared to $0.5 million for Q2-2025.

Production and ad valorem taxes for Q2-2026 were $0.9 million versus $0.8 million in Q2-2025, as a result of higher product revenues.

Depreciation, Depletion, and Amortization (“DD&A”) and Accretion for Q2-2026 was $2.0 million versus $3.1 million for Q2-2025. The decrease in DD&A is primarily due to the impact of impairments in Q4-2025 and lower production volumes period over period, partially offset by the additional interests acquired in New Mexico in Q1-2026. Accretion increased slightly due to the additional interest acquired in New Mexico.

General and administrative expenses, excluding share-based compensation expense, were $2.88 million, or $17.32 per Boe in Q2-2026 versus $2.91 million, or $13.55 per Boe in Q2-2025. The slight decrease in expenses was primarily due to a decrease in employee costs due to lower headcount in 2026 partially offset by additional professional fees and rent expense.

Total interest expense for Q2-2026 compared to Q2-2025 resulted in a slight increase due to a higher average outstanding balance and interest rate under the Company’s credit facility and additional notes related to equipment and vehicle.

Empire recorded a net loss of $1.9 million in Q2-2026, or ($0.05) per diluted share, versus a Q2-2025 net loss of $5.1 million, or ($0.15) per diluted share.

Adjusted EBITDA was $0.4 million for Q2-2026 compared to Adjusted EBITDA of ($1.2) million in Q2-2025.

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For the six months ended June 30, 2026, Empire incurred approximately $4.0 million of total additions to oil and natural gas properties, which is primarily from the Company’s gas development program in Texas. Empire successfully completed a Rights Offering in March 2026, which raised approximately $10.0 million of gross proceeds, before transaction costs.

As of June 30, 2026, Empire had approximately $3.1 million in cash on hand, and approximately $2.0 million available on its credit facility.

UPDATED PRESENTATIONS

An updated Company earnings presentation, along with a technical presentation regarding the Texas operational developments, will be posted in the Investor Relations section of the Company’s website at www.empirepetroleumcorp.com.

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.

CAUTIONARY NOTE REGARDING WELL DATA

Log data, sidewall core recovery and hydrocarbon shows indicate the presence of hydrocarbons and provide information on reservoir quality. They are not a measurement of producible reserves and are not indicative of commercial flow rates. The Wakefield‑Harrison GU B #1 has not been completed or production tested, and no flow rate, reserve or resource estimate is being reported for this well. Results reported by other operators are from wells in different locations, in different reservoir intervals, with different completion designs, and are not a prediction of results Empire may achieve.

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, 2025, 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 factors discussed above, future commodity prices, 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, including inflation, tariffs and interest rates, 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.

2026

2025

2026

2025

11,017

7,302

8,005

18,319

16,054

(524

)

185

221

(339

)

769

614

197

521

811

916

11,107

7,684

8,747

18,791

17,739

(1,612

)

(2,591

)

(4,203

)

9,505

5,103

8,754

14,608

17,756

5,037

5,160

6,387

10,197

12,153

938

507

768

1,445

1,480

1,444

1,417

2,576

2,861

4,802

542

535

534

1,077

1,060

2,878

2,876

2,906

5,754

6,103

208

189

486

397

1,017

3,086

3,065

3,392

6,151

7,120

11,047

10,684

13,657

21,731

26,615

(1,542

)

(5,581

)

(4,903

)

(7,123

)

(8,859

)

(329

)

(480

)

(334

)

(809

)

(630

)

(659

)

(659

)

181

212

(1,858

)

(6,642

)

(5,056

)

(8,500

)

(9,277

)

(1,858

)

(6,642

)

(5,056

)

(8,500

)

(9,277

)

(0.05

)

(0.18

)

(0.15

)

(0.22

)

(0.27

)

(0.05

)

(0.18

)

(0.15

)

(0.22

)

(0.27

)

41,274,853

36,003,701

33,853,310

38,653,838

33,837,377

41,274,853

36,003,701

33,853,310

38,653,838

33,837,377

2026

2025

2026

2025

116,316

112,317

135,854

228,633

255,489

124,061

235,517

237,133

359,578

437,001

29,126

17,628

39,091

46,753

70,544

166,118

169,197

214,467

335,315

398,867

1,825

1,880

2,357

1,853

2,204

58.26

65.01

58.92

61.57

62.84

(4.22

)

0.79

0.93

(0.94

)

1.76

21.08

11.18

13.33

17.35

12.98

41.33

45.41

40.78

43.39

44.47

30.32

30.51

29.78

30.42

30.47

5.65

3.00

3.58

4.31

3.71

11.96

11.54

14.50

11.74

14.70

17.32

17.00

13.55

17.16

15.30

1.26

1.12

2.27

1.18

2.55

18.58

18.12

15.82

18.34

17.85

1 Average Oil Price per Unit excluding the effect of net settlements received (paid) for the three and six months ended June 30, 2026, were $94.72 and $80.12, respectively. There are no impacts for the three and six months ended June 30, 2025, as there were no open commodity derivatives during the respective periods.

2026

2025

2026

2025

(1,858

)

(6,642

)

(5,056

)

(8,500

)

(9,277

)

208

189

486

397

1,017

217

119

120

336

241

1,444

1,417

2,576

2,861

4,802

542

535

534

1,077

1,060

1,612

2,591

4,203

(4,241

)

(4,241

)

(78

)

(78

)

115

659

(175

)

(175

)

(12

)

(12

)

(32

)

(678

)

(815

)

(2,291

)

(1,493

)

(2,012

)

(192

)

200

(125

)

321

331

371

425

(3,194

)

1,209

(355

)

(1,985

)

1,321

2,124

699

455

762

1,054

)

(190

)

(194

)

(2,753

)

(970

)

(3,138

)

(3,723

)

(1,525

)

175

(2,386

)

(1,170

)

(491

)

(3,556

)

(3,171

)

(95

)

(13

)

(23

)

(108

)

(41

)

(208

)

(109

)

(111

)

(317

)

(224

)

(2,689

)

(1,292

)

(450

)

(3,981

)

(3,212

)

3,000

(1,000

)

(1,000

)

3,000

2,000

3,000

2,000

(2,000

)

(2,000

)

(219

)

(90

)

(200

)

(309

)

(221

)

9,948

(219

)

9,858

4,800

9,639

4,779

(5,661

)

7,596

1,212

1,935

8,785

1,189

1,081

1,189

2,251

3,124

8,785

2,293

3,124

2,293

2026

2025

3,124

1,189

6,652

5,122

1,387

1,262

788

607

11,989

8,180

162,273

148,238

(96,190

)

(93,425

)

66,083

54,813

1,993

1,486

68,076

56,299

1,010

1,394

81,075

65,873

9,688

10,799

3,078

13,378

12,616

562

286

1,632

641

28,338

24,342

13,505

14,415

1,023

339

281

31,577

30,406

73,759

70,479

101

168,606

148,191

(161,391

)

(152,891

)

7,316

(4,606

)

81,075

65,873

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 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 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.

2026

2025

2026

2025

(1,858

)

(6,642

)

(5,056

)

(8,500

)

(9,277

)

(2,117

1,612

2,591

4,203

(78

)

(78

)

(175

)

(175

)

(12

)

(12

)

(32

)

659

(2,375

)

(3,470

)

(5,231

)

(5,845

)

(9,484

)

41,274,853

36,003,701

33,853,310

38,653,838

33,837,377

(0.06

)

(0.10

)

(0.15

)

(0.15

)

(0.28

)

1 For the three and six months ended June 30, 2026, includes amounts early settled by the counterparty on behalf of Empire of approximately $2.1 million and payable.

The Company defines adjusted EBITDA as net loss plus net interest expense, DD&A, accretion, amortization of right of use assets, income tax provision (benefit), and other adjustments. 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 (loss), 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.

2026

2025

2026

2025

(1,858

)

(6,642

)

(5,056

)

(8,500

)

(9,277

)

329

480

334

809

630

1,444

1,417

2,576

2,861

4,802

542

535

534

1,077

1,060

217

119

120

336

241

674

(4,091

)

(1,492

)

(3,417

)

(2,544

)

208

189

486

397

1,017

(2,117

)

(2,117

)

1,612

2,591

4,203

(78

)

(78

)

659

(175

)

(175

)

(12

)

(12

)

(32

)

365

(730

)

(1,181

)

(365

)

(1,734

)

1 For the three and six months ended June 30, 2026, includes amounts early settled by the counterparty on behalf of Empire of approximately $2.1 million and payable.