Empire Petroleum Reports Third Quarter 2025 Results, Advances Development, and Positions for 2026 Growth
TULSA, Okla.--( BUSINESS WIRE)--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 operational and financial results for the third quarter 2025.
THIRD QUARTER 2025 HIGHLIGHTS
2025 OUTLOOK
“Empire continues to execute with precision and discipline as we move through the remainder of 2025,” said Phil Mulacek, Chairman of the Board. “Our operational teams are achieving measurable progress across multiple fronts, from consistent improvement in North Dakota’s EOR program to ongoing technical advancements in Texas. We remain focused on delivering operational excellence, capital efficiency, and strategic development sequencing across the portfolio. The natural gas market has shifted significantly over the past several years, with U.S. liquefied natural gas exports now exceeding approximately 18 billion cubic feet per day compared to near zero just over a decade ago, and pricing strengthening from lows near $1.35 per thousand cubic feet (“Mcf”) 1 toward long-term historical averages in the $4.00-$5.00/Mcf range. As additional demand from data centers, industrial users, and exports into Mexico continues to accelerate, long-term fundamentals point toward ongoing tightening into 2026. To capitalize on this shift, Empire is building operational flexibility by progressing a series of drilled-but-uncompleted (“DUC”) wells, positioning the Company to efficiently transition into higher-value gas development in 2026. This disciplined sequencing allows us to align capital deployment with commodity signals and maximize returns as the market evolves. As pricing signals continue to strengthen, we expect natural gas to play an increasingly meaningful and leading role in Empire’s development strategy and earnings growth trajectory beginning in 2026. The recent successful completion of the Rights Offering, particularly during a period of commodity price volatility, underscores the confidence and alignment of our shareholders. We greatly appreciate their continued support and belief in Empire’s long-term strategy. With these accomplishments and a constructive outlook for the broader energy market, I believe we’re well positioned to capture meaningful upside as pricing conditions stabilize. The groundwork we’re laying today is designed to position Empire for long-term success, and as we move forward, we look forward to building additional production in New Mexico, a key driver of future growth within Empire’s portfolio.”
Mike Morrisett, President and CEO, added, “Our third quarter results reflect steady operational execution and focused progress across Empire’s core assets. In North Dakota, recent upgrades and system enhancements have improved reliability and consistency, setting the stage for stable production levels. In Texas, we continue to prepare for the launch of our first drilling program in the area, completing pre-drill activities and advancing readiness across multiple locations. In New Mexico, we’re maintaining production and pursuing incremental improvements to maximize efficiency across our legacy unitized assets. The strong participation in our Rights Offering reflects continued confidence in Empire’s direction, and we’re deeply appreciative of that support as we work to execute on our development plan. With disciplined capital management and a clear operational roadmap, Empire is entering 2026 with momentum, flexibility, and a focused path toward scalable growth.”
North Dakota – Williston Basin:
New Mexico – Permian Basin:
Texas – East Texas Basin:
1 Pricing reference: The cited low price of approximately $1.35 reflects benchmark Henry Hub natural gas spot pricing published in $/MMBtu, based on U.S. Energy Information Administration and market-indexed reporting during late 2024. Values in the release are expressed in $/Mcf for consistency and use standard U.S. conversion equivalency (1 Mcf ≈ 1.00–1.05 MMBtu).
THIRD QUARTER 2025 FINANCIAL AND OPERATIONAL RESULTS
2,398
2,357
2%
2,460
-3%
1,566
1,493
5%
1,573
0%
$42.48
$40.78
4%
$48.12
-12%
$9,374
$8,747
7%
$10,892
-14%
($3,844)
($5,056)
24%
($3,641)
-6%
($3,934)
($5,231)
25%
($3,829)
-3%
$137
($1,181)
112%
($56)
345%
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.
Net sales volumes for Q3-2025 were 2,398 Boe/d, including 1,566 barrels of oil per day; 456 barrels of NGLs per day, and 2,257 thousand cubic feet per day (“Mcf/d”) or 376 Boe/d of natural gas. Oil sales volumes slightly decreased compared to Q3-2024 primarily due to natural decline offset by redrilling efforts in North Dakota .
Empire reported Q3-2025 total product revenue of $9.4 million versus $10.9 million in Q3-2024. Contributing to the decrease were lower average oil and NGL realized prices. Realized oil and natural gas liquids prices decreased 15% and 33%, respectively, due to a general decline in overall market pricing.
Lease operating expenses in Q3-2025 decreased to $5.7 million versus $6.7 million in Q3-2024 primarily due to lower workover costs. Q3-2025 workover expense decreased to $0.4 million versus $1.4 million in Q3-2024. Higher workover expense in 2024 was primarily in New Mexico as Empire continued work in the region to enhance and maintain production.
Production and ad valorem taxes for Q3-2025 were $0.8 million versus $1.0 million in Q3-2024, as a result of lower product revenues.
Depreciation, Depletion, and Amortization (“DD&A”) and Accretion for Q3-2025 was $3.3 million versus $3.1 million for Q3-2024. The increase in DD&A is primarily due to the impact of capitalized costs associated with the new drilling as part of Empire’s Starbuck Drilling Program in North Dakota, partially offset by lower production volumes. Accretion increased slightly due to the new drilling activity and acquisition of working interest in New Mexico.
General and administrative expenses, excluding share-based compensation expense, was $2.9 million, or $13.06 per Boe in Q3-2025 versus $3.6 million, or $16.06 per Boe in Q3-2024. The decrease in expenses was primarily due to timing of board of director compensation and franchise taxes.
Interest expense for Q3-2025 slightly increased, compared to Q3-2024, primarily due to a higher average outstanding balance on the Company’s credit facility and additional equipment and vehicle notes.
Empire recorded a net loss of $3.8 million in Q3-2025, or ($0.11) per diluted share, versus a Q3-2024 net loss of $3.6 million, or ($0.12) per diluted share.
Adjusted EBITDA was $0.1 million for Q3-2025 compared to Adjusted EBITDA of ($0.1) million in Q3-2024.
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For the nine months ended September 30, 2025, Empire invested approximately $4.2 million in total capital expenditures, primarily from finalizing drilling and completions activity related to the Starbuck Drilling Program in North Dakota and continued return-to-production efforts in Texas.
As of September 30, 2025, Empire had approximately $4.6 million in cash on hand and approximately $3.3 million available on its credit facility. Empire completed a subscriptions rights offering in August 2025, which raised approximately $2.5 million of gross proceeds, before transaction costs.
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 their 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, 2024, 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, 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, successful completion of the Rights Offering, including future exercise of the warrants issued as part of the Rights Offering, 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.
2025
2025
2024
2025
2024
$
8,790
$
8,005
$
10,341
$
24,844
$
32,070
196
221
9
965
270
388
521
542
1,304
1,575
9,374
8,747
10,892
27,113
33,915
14
7
15
31
36
-
-
470
-
(389
)
9,388
8,754
11,377
27,144
33,562
5,735
6,387
6,734
17,888
21,664
755
768
984
2,235
2,883
2,794
2,576
2,596
7,596
6,763
534
534
510
1,594
1,487
2,881
2,906
3,636
8,984
8,869
238
486
335
1,255
1,637
3,119
3,392
3,971
10,239
10,506
12,937
13,657
14,795
39,552
43,303
(3,549
)
(4,903
)
(3,418
)
(12,408
)
(9,741
)
(388
)
(334
)
(196
)
(1,018
)
(1,246
)
93
181
(27
)
305
(1,018
)
(3,844
)
(5,056
)
(3,641
)
(13,121
)
(12,005
)
-
-
-
-
-
$
(3,844
)
$
(5,056
)
$
(3,641
)
$
(13,121
)
$
(12,005
)
$
(0.11
)
$
(0.15
)
$
(0.12
)
$
(0.39
)
$
(0.41
)
$
(0.11
)
$
(0.15
)
$
(0.12
)
$
(0.39
)
$
(0.41
)
34,043,173
33,853,310
31,619,333
33,906,417
29,055,331
34,043,173
33,853,310
31,619,333
33,906,417
29,055,331
2025
2025
2024
2025
2024
144,098
135,854
144,674
399,587
435,717
207,677
237,133
255,195
644,678
708,258
41,938
39,091
39,137
112,482
113,534
220,648
214,467
226,344
619,515
667,294
2,398
2,357
2,460
2,269
2,435
$
61.00
$
58.92
$
71.48
$
62.17
$
73.60
$
0.94
$
0.93
$
0.04
$
1.50
$
0.38
$
9.25
$
13.33
$
13.85
$
11.59
$
13.87
$
42.48
$
40.78
$
48.12
$
43.76
$
50.82
$
25.99
$
29.78
$
29.75
$
28.87
$
32.46
$
3.42
$
3.58
$
4.35
$
3.61
$
4.32
$
15.08
$
14.50
$
13.72
$
14.83
$
12.36
$
13.06
$
13.55
$
16.06
$
14.50
$
13.29
$
1.08
$
2.27
$
1.48
$
2.03
$
2.45
$
14.14
$
15.82
$
17.54
$
16.53
$
15.74
2025
2024
$
4,601
$
2,251
8,331
8,155
1,218
1,305
536
640
14,686
12,351
144,395
140,675
(39,237
)
(31,974
)
105,158
108,701
1,697
1,391
106,855
110,092
1,451
1,425
$
122,992
$
123,868
$
10,574
$
10,452
12,003
10,348
330
400
407
70
23,314
21,270
14,801
11,266
752
-
61
144
745
-
29,656
28,423
69,329
61,103
-
-
94
93
147,507
143,489
(93,938
)
(80,817
)
53,663
62,765
$
122,992
$
123,868
2025
2025
2024
2025
2024
$
(3,844
)
$
(5,056
)
$
(3,641
)
$
(13,121
)
$
(12,005
)
238
486
335
1,255
1,637
117
120
136
358
407
2,794
2,576
2,596
7,596
6,763
534
534
509
1,594
1,487
-
-
(470
)
-
389
-
-
282
-
18
(97
)
-
-
(97
)
998
-
-
-
-
500
-
-
27
-
10
7
(175
)
-
(168
)
-
-
-
-
(32
)
-
1,835
(2,291
)
2,277
(177
)
1,647
86
200
(48
)
87
(66
)
220
331
212
645
672
(1,792
)
(355
)
10,419
(471
)
12,274
601
455
41
1,655
1,071
(369
)
37
136
(319
)
(885
)
330
(3,138
)
12,811
(1,195
)
14,917
400
175
-
575
-
(453
)
(491
)
(18,616
)
(3,624
)
(48,759
)
-
-
-
49
-
(12
)
(23
)
(20
)
(53
)
(139
)
(107
)
(111
)
(125
)
(331
)
(376
)
(172
)
(450
)
(18,761
)
(3,384
)
(49,274
)
-
3,000
-
3,000
3,950
2,000
2,000
-
4,000
5,000
(2,000
)
-
-
(2,000
)
-
(208
)
(200
)
(158
)
(429
)
(377
)
2,358
-
-
2,358
20,512
-
-
-
-
629
2,150
4,800
(158
)
6,929
29,714
2,308
1,212
(6,108
)
2,350
(4,643
)
2,293
1,081
9,258
2,251
7,793
$
4,601
$
2,293
$
3,150
$
4,601
$
3,150
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.
2025
2025
2024
2025
2024
$
(3,844
)
$
(5,056
)
$
(3,641
)
$
(13,121
)
$
(12,005
)
-
-
(470
)
-
389
-
-
282
-
18
(97
)
-
-
(97
)
998
7
(175
)
-
(168
)
-
-
-
-
(32
)
-
$
(3,934
)
$
(5,231
)
$
(3,829
)
$
(13,418
)
$
(10,600
)
34,043,173
33,853,310
31,619,333
33,906,417
29,055,331
$
(0.12
)
$
(0.15
)
$
(0.12
)
$
(0.40
)
$
(0.36
)
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.
2025
2025
2024
2025
2024
$
(3,844
)
$
(5,056
)
$
(3,641
)
$
(13,121
)
$
(12,005
)
388
334
196
1,018
1,246
2,794
2,576
2,596
7,596
6,763
534
534
510
1,594
1,487
117
120
136
358
407
$
(11
)
$
(1,492
)
$
(203
)
$
(2,555
)
$
(2,102
)
238
486
335
1,255
1,637
-
-
(470
)
-
389
-
-
282
-
18
(97
)
-
-
(97
)
998
7
(175
)
-
(168
)
-
-
-
-
(32
)
-
$
137
$
(1,181
)
$
(56
)
$
(1,597
)
$
940