TULSA, Okla.--(BUSINESS WIRE)--November 17, 2025--
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
-- Produced Q3-2025 net production volumes of 1,566 barrels of oil per day
("Bbls/d"), an increase of 5% compared to Q2-2025;
-- Reported 2,398 barrels of oil equivalent per day ("Boe/d");
-- Boe/d is comprised of 65% oil, 19% natural gas liquids ("NGLs"),
and 16% natural gas;
-- Empire continues to advance its enhanced oil recovery ("EOR") efforts
in the Starbuck Drilling Program ("Starbuck") in North Dakota, where
modified wellhead installations were completed during Q3-2025;
-- Following analysis of the previously planned rare alloy
components, the Company implemented an alternative water injection
system designed to reduce scaling tendencies and improve system
reliability;
-- Empire also filed the final patent for its proprietary
hydrocarbon vaporization technology, which leverages elevated
temperatures and pressure differentials to increase recovery
efficiency;
-- Empire furthered preparations for its inaugural drilling campaign in
Texas, positioning additional locations to support a scalable development
plan;
-- As part of ongoing groundwork for future horizontal development
across multiple prospective pay zones, the Company finalized
reprocessing of legacy seismic data;
-- Given current commodity prices, Empire is strategically pacing
the start of drilling operations, now anticipated in 2026, to
align capital development with market conditions and maximize
long-term value creation;
-- In Q3-2025, Empire successfully completed its subscription rights
offering ("Rights Offering"), generating approximately $2.5 million in
gross proceeds, before transaction costs;
-- The Company received subscriptions for more than 100% of the
securities available in the Rights Offering and accordingly,
stockholders received their basic subscription privilege. Because
there were not enough units to satisfy all oversubscriptions,
remaining securities were allocated pro-rata, after eliminating
all fractional shares, among oversubscribing stockholders;
-- As disclosed in previous filings, Phil E. Mulacek, Chairman of
the Board of Empire and one of the Company's largest shareholders,
participated in the Rights Offering, fully subscribing to the
securities corresponding to his subscription rights, and
exercising his over-subscription rights to purchase his pro-rata
share of the underlying securities related to the Rights Offering
that remain unsubscribed.
-- Reported Q3-2025 total product revenue of $9.4 million, a net loss of
$3.8 million, or ($0.11) per diluted share;
-- Adjusted EBITDA of $0.1 million for Q3-2025.
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:
-- Empire continues to execute targeted enhancements to the Starbuck EOR
program in North Dakota, where system performance and production
consistency have shown measurable improvement through 2025;
-- The Company is installing a new pipeline segment to supply
higher-quality water to a dedicated circuit within the EOR system,
an upgrade expected to improve reliability, minimize scaling, and
reduce long-term operating costs;
-- In parallel, Empire has implemented multiple refinements across
EOR equipment and processes, further optimizing performance and
efficiency;
-- With these upgrades progressing and the system operating more
consistently, Empire anticipates achieving stable, sustained
production levels by year-end; and
-- The Company is also evaluating opportunities to apply its proprietary
EOR model across additional assets in North Dakota, advancing a
methodical, data-driven approach to long-term field development.
New Mexico -- Permian Basin:
-- On September 12, 2025, the New Mexico Conservation Commission
("Commission") issued Order No. R-24004 (the "Order") regarding the
Company's rights to the Residual Oil Zone ("ROZ") in the Eunice Monument
South Unit's ("EMSU") Unitized Interval. The Commission unanimously
affirmed the existence of a ROZ in the Grayburg and San Andres formations
within the EMSU and confirmed Empire's exclusive rights to produce the
ROZ under the 1984 Commission Order.
-- Based on these findings, the Commission:
-- Denied Goodnight's applications to drill five new
saltwater disposal ("SWD") wells within the boundaries of
the EMSU;
-- Denied Goodnight's application to increase injection
volumes in an existing SWD well;
-- Suspended Goodnight's four SWD wells located within the
EMSU boundaries to provide Empire the opportunity to
establish the CO EOR pilot project;
-- The Commission recently granted a limited request for stay and
rehearing to consider (1) the authority for suspension in light of
certain factual findings; and (2), the authority or discretion of
the New Mexico Oil Conservation Division in implementation of the
Order;
-- Pending the Commission's decision, Empire plans to proceed with
motions to revoke the existing permits granted to the remaining
three SWD Companies disposing wastewater into the EMSU and
Arrowhead Grayburg Unit Unitized Interval, while concurrently
advancing litigation for trespass and damages;
-- As of the date of this release, the briefing and oral hearing on
the rehearing has taken place, and Empire is awaiting the
Commission's decision; and
-- The Company expects final resolution of this matter to result in a
meaningful reduction in operating expenses and contribute to improved
financial performance going forward.
Texas -- East Texas Basin:
-- Empire continues to advance its development program in Texas,
maintaining readiness for its inaugural drilling campaign as part of the
Company's broader growth strategy in the region;
-- Technical groundwork completed to date, including seismic
reprocessing, surface preparation, and location planning, has
positioned the Company for efficient execution once drilling
commences;
-- In Q4-2025, Empire will initiate re-entry and workover rig
operations on the initial well location to finalize target zones
for optimal lateral location, marking a key pre-drill milestone in
the development timeline;
-- Given current commodity pricing, the Company is targeting the
start of drilling operations in 2026, allowing for optimal timing
and resource allocation;
-- The upcoming program is designed to test multiple prospective
pay zones identified during the initial technical evaluation,
utilizing approximately a dozen DUC wells to accelerate the
Company's 2026 gas-focused development strategy; and
-- Additionally, Empire is advancing horizontal gas development
opportunities aimed at delivering long-term, capital-efficient
production growth.
(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 $/Mcf for consistency and
use standard U.S. conversion equivalency (1 Mcf .APPROX. 1.00--1.05 MMBtu).
THIRD QUARTER 2025 FINANCIAL AND OPERATIONAL RESULTS
% Change % Change
Q3-25 vs. Q3-25 vs.
Q3-25 Q2-25 Q2-25 Q3-24 Q3-24
-------- -------- ------------ -------- ------------
Net
equivalent
sales
(Boe/d) 2,398 2,357 2% 2,460 -3%
Net oil
sales
(Bbls/d) 1,566 1,493 5% 1,573 0%
Realized
price
($/Boe) $42.48 $40.78 4% $48.12 -12%
Product
Revenue
($M) $9,374 $8,747 7% $10,892 -14%
Net Loss
($M) ($3,844) ($5,056) 24% ($3,641) -6%
Adjusted Net
Loss
($M)(1) ($3,934) ($5,231) 25% ($3,829) -3%
Adjusted
EBITDA
($M)(1) $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.
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Operations
(in thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
---------------------------------------- ----------------------------
September September
30, June 30, 30, September 30,
2025 2025 2024 2025 2024
---------- ---------- ---------- ---------- ----------
Revenue:
Oil Sales $ 8,790 $ 8,005 $ 10,341 $ 24,844 $ 32,070
Gas Sales 196 221 9 965 270
Natural Gas Liquid
("NGL") Sales 388 521 542 1,304 1,575
---------- ---------- ---------- ---------- ----------
Total Product
Revenues 9,374 8,747 10,892 27,113 33,915
Other 14 7 15 31 36
Gain (Loss) on
Derivatives - - 470 - (389)
---------- ---------- ---------- ---------- ----------
Total Revenue 9,388 8,754 11,377 27,144 33,562
Costs and Expenses:
Lease Operating
Expense 5,735 6,387 6,734 17,888 21,664
Production and Ad
Valorem Taxes 755 768 984 2,235 2,883
Depreciation,
Depletion &
Amortization 2,794 2,576 2,596 7,596 6,763
Accretion of Asset
Retirement
Obligation 534 534 510 1,594 1,487
General and
Administrative:
General and
Administrative 2,881 2,906 3,636 8,984 8,869
Stock-Based
Compensation 238 486 335 1,255 1,637
---------- ---------- ---------- ---------- ----------
Total General and
Administrative 3,119 3,392 3,971 10,239 10,506
---------- ---------- ---------- ---------- ----------
Total Cost and
Expenses 12,937 13,657 14,795 39,552 43,303
---------- ---------- ---------- ---------- ----------
Operating Loss (3,549) (4,903) (3,418) (12,408) (9,741)
Other Income and
(Expense):
Interest Expense (388) (334) (196) (1,018) (1,246)
Other Income
(Expense) 93 181 (27) 305 (1,018)
Loss Before Taxes (3,844) (5,056) (3,641) (13,121) (12,005)
Income Tax Benefit
(Provision) - - - - -
---------- ---------- ---------- ---------- ----------
Net Loss $ (3,844) $ (5,056) $ (3,641) $ (13,121) $ (12,005)
========== ========== ========== ========== ==========
Net Loss per Common
Share:
Basic $ (0.11) $ (0.15) $ (0.12) $ (0.39) $ (0.41)
========== ========== ========== ========== ==========
Diluted $ (0.11) $ (0.15) $ (0.12) $ (0.39) $ (0.41)
========== ========== ========== ========== ==========
Weighted-Average Number of Common
Shares Outstanding:
Basic 34,043,173 33,853,310 31,619,333 33,906,417 29,055,331
========== ========== ========== ========== ==========
Diluted 34,043,173 33,853,310 31,619,333 33,906,417 29,055,331
========== ========== ========== ========== ==========
EMPIRE PETROLEUM CORPORATION
Condensed Operating Data
(Unaudited)
Three Months Ended Nine Months Ended
--------------------------------- ------------------
September September
30, June 30, 30, September 30,
2025 2025 2024 2025 2024
---------- -------- ----------- -------- --------
Net Sales Volumes:
Oil (Bbl) 144,098 135,854 144,674 399,587 435,717
Natural gas (Mcf) 207,677 237,133 255,195 644,678 708,258
Natural gas liquids (Bbl) 41,938 39,091 39,137 112,482 113,534
--------- ------- ------- ------- -------
Total (Boe) 220,648 214,467 226,344 619,515 667,294
Average daily equivalent
sales (Boe/d) 2,398 2,357 2,460 2,269 2,435
Average Price per Unit:
Oil ($/Bbl) $ 61.00 $ 58.92 $ 71.48 $ 62.17 $ 73.60
Natural gas ($/Mcf) $ 0.94 $ 0.93 $ 0.04 $ 1.50 $ 0.38
Natural gas liquids ($/Bbl) $ 9.25 $ 13.33 $ 13.85 $ 11.59 $ 13.87
--------- ------- ------- ------- -------
Total ($/Boe) $ 42.48 $ 40.78 $ 48.12 $ 43.76 $ 50.82
Operating Costs and Expenses per Boe:
Lease operating expense $ 25.99 $ 29.78 $ 29.75 $ 28.87 $ 32.46
Production and ad valorem
taxes $ 3.42 $ 3.58 $ 4.35 $ 3.61 $ 4.32
Depreciation, depletion,
amortization and
accretion $ 15.08 $ 14.50 $ 13.72 $ 14.83 $ 12.36
General & administrative
expense:
General & administrative
expense (excluding
stock-based
compensation) $ 13.06 $ 13.55 $ 16.06 $ 14.50 $ 13.29
Stock-based compensation $ 1.08 $ 2.27 $ 1.48 $ 2.03 $ 2.45
Total general &
administrative expense $ 14.14 $ 15.82 $ 17.54 $ 16.53 $ 15.74
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
September 30, December 31,
2025 2024
---------- ---------
ASSETS
---------------------------------------
Current Assets:
Cash $ 4,601 $ 2,251
Accounts Receivable 8,331 8,155
Inventory 1,218 1,305
Prepaids 536 640
---------- ---------
Total Current Assets 14,686 12,351
Property and Equipment:
Oil and Natural Gas Properties,
Successful Efforts 144,395 140,675
Less: Accumulated Depletion,
Amortization and Impairment (39,237) (31,974)
---------- ---------
Total Oil and Gas Properties, Net 105,158 108,701
Other Property and Equipment, Net 1,697 1,391
---------- ---------
Total Property and Equipment, Net 106,855 110,092
Other Noncurrent Assets 1,451 1,425
---------- ---------
Total Assets $ 122,992 $ 123,868
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
Current Liabilities:
Accounts Payable $ 10,574 $ 10,452
Accrued Expenses 12,003 10,348
Current Portion of Lease Liability 330 400
Current Portion of Long-Term Debt 407 70
---------- ---------
Total Current Liabilities 23,314 21,270
Long-Term Debt 14,801 11,266
Long-Term Note Payable - Related
Party, net 752 -
Long-Term Lease Liability 61 144
Derivative Instruments 745 -
Asset Retirement Obligations 29,656 28,423
---------- ---------
Total Liabilities 69,329 61,103
Stockholders' Equity:
Series A Preferred Stock - $0.001
Par Value, 10,000,000 Shares
Authorized, 6 and 6 Shares Issued
and Outstanding, Respectively - -
Common Stock - $0.001 Par Value
190,000,000 Shares Authorized,
34,266,208 and 33,667,132 Shares
Issued and Outstanding,
Respectively 94 93
Additional Paid-in-Capital 147,507 143,489
Accumulated Deficit (93,938) (80,817)
---------- ---------
Total Stockholders' Equity 53,663 62,765
---------- ---------
Total Liabilities and Stockholders'
Equity $ 122,992 $ 123,868
========== =========
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
-------------------------------- ----------------------
September September
30, June 30, 30, September 30,
2025 2025 2024 2025 2024
------ ------ ------- ------- -------
Cash Flows From
Operating
Activities:
Net Loss $ (3,844) $(5,056) $ (3,641) $(13,121) $(12,005)
Adjustments to
Reconcile Net
Loss to Net Cash
(Used In)
Provided By
Operating
Activities:
Stock-Based
Compensation 238 486 335 1,255 1,637
Amortization of
Right-of-Use
Assets 117 120 136 358 407
Depreciation,
Depletion &
Amortization 2,794 2,576 2,596 7,596 6,763
Accretion of
Asset
Retirement
Obligations 534 534 509 1,594 1,487
Loss (Gain) on
Commodity
Derivatives - - (470) - 389
Settlement on
or Purchases
of Derivative
Instruments - - 282 - 18
Loss (Gain) on
Financial
Derivatives (97) - - (97) 998
Amortization of
Debt Discount
on Convertible
Notes - - - - 500
Loss on
Extinguishment
of Debt - - 27 - 10
Loss (Gain) on
Sale of Oil
and Natural
Gas
Properties 7 (175) - (168) -
Gain on Sale of
Other Fixed
Assets - - - (32) -
Change in
Operating
Assets and
Liabilities:
Accounts
Receivable 1,835 (2,291) 2,277 (177) 1,647
Inventory,
Oil in
Tanks 86 200 (48) 87 (66)
Prepaids,
Current 220 331 212 645 672
Accounts
Payable (1,792) (355) 10,419 (471) 12,274
Accrued
Expenses 601 455 41 1,655 1,071
Other
Long-Term
Assets and
Liabilities (369) 37 136 (319) (885)
------ ------ ------- ------- -------
Net Cash (Used In)
Provided By
Operating
Activities 330 (3,138) 12,811 (1,195) 14,917
------ ------ ------- ------- -------
Cash Flows From
Investing
Activities:
Disposal of Oil
and Natural
Gas
Properties 400 175 - 575 -
Capital
Expenditures -
Oil and
Natural Gas
Properties (453) (491) (18,616) (3,624) (48,759)
Disposal of
Other Fixed
Assets - - - 49 -
Purchase of
Other Fixed
Assets (12) (23) (20) (53) (139)
Cash Paid for
Right-of-Use
Assets (107) (111) (125) (331) (376)
------ ------ ------- ------- -------
Net Cash Used In
Investing
Activities (172) (450) (18,761) (3,384) (49,274)
------ ------ ------- ------- -------
Cash Flows From
Financing
Activities:
Borrowings on
Credit
Facility - 3,000 - 3,000 3,950
Proceeds from
Promissory
Notes -
Related Party 2,000 2,000 - 4,000 5,000
Payments on
Promissory
Note - Related
Party (2,000) - - (2,000) -
Principal
Payments of
Debt (208) (200) (158) (429) (377)
Proceeds from
Rights
Offering, net
of transaction
costs 2,358 - - 2,358 20,512
Net Proceeds
from Warrant
Exercise - - - - 629
------ ------ ------- ------- -------
Net Cash Provided
By Financing
Activities 2,150 4,800 (158) 6,929 29,714
------ ------ ------- ------- -------
Net Change in Cash 2,308 1,212 (6,108) 2,350 (4,643)
Cash - Beginning
of Period 2,293 1,081 9,258 2,251 7,793
------ ------ ------- ------- -------
Cash - End of
Period $ 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.
Three Months Ended Nine Months Ended
---------------------------------------- ----------------------------
September September
30, June 30, 30, September 30,
2025 2025 2024 2025 2024
---------- ---------- ---------- ---------- ----------
(in thousands, except share data)
Net Loss $ (3,844) $ (5,056) $ (3,641) $ (13,121) $ (12,005)
Adjusted for:
Loss (gain)
on
commodity
derivatives - - (470) - 389
Settlement
on or
purchases
of
derivative
instruments - - 282 - 18
Loss (gain)
on
financial
derivatives (97) - - (97) 998
Loss (gain)
on sale of
oil and
natural gas
properties 7 (175) - (168) -
Gain on sale
of other
fixed
assets - - - (32) -
---------- ---------- ---------- ---------- ----------
Adjusted Net Loss $ (3,934) $ (5,231) $ (3,829) $ (13,418) $ (10,600)
========== ========== ========== ========== ==========
Diluted
Weighted-Average
Number of Common
Shares
Outstanding 34,043,173 33,853,310 31,619,333 33,906,417 29,055,331
---------- ---------- ---------- ---------- ----------
Adjusted Net Loss
Per Common Share $ (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.
Three Months Ended Nine Months Ended
---------------------------------- ----------------------
September September
30, June 30, 30, September 30,
2025 2025 2024 2025 2024
------ ------ ------ ------- -------
(in thousands)
Net Loss $ (3,844) $(5,056) $ (3,641) $(13,121) $(12,005)
Add Back:
Interest
expense 388 334 196 1,018 1,246
DD&A 2,794 2,576 2,596 7,596 6,763
Accretion 534 534 510 1,594 1,487
Amortization
of
right-of-use
assets 117 120 136 358 407
------ ------ ------ ------- -------
EBITDA $ (11) $(1,492) $ (203) $ (2,555) $ (2,102)
Adjustments:
Stock-based
compensation 238 486 335 1,255 1,637
Loss (gain)
on commodity
derivatives - - (470) - 389
Settlement on
or purchases
of
derivative
instruments - - 282 - 18
Loss (gain)
on financial
derivatives (97) - - (97) 998
Loss (gain)
on sale of
oil and
natural gas
properties 7 (175) - (168) -
Gain on sale
of other
fixed
assets - - - (32) -
------ ------ ------ ------- -------
Adjusted EBITDA $ 137 $(1,181) $ (56) $ (1,597) $ 940
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View source version on businesswire.com: https://www.businesswire.com/news/home/20251117779949/en/
CONTACT: Mike Morrisett
President & CEO
539-444-8002
Info@empirepetrocorp.com
Kali Carter
Communications & Investor Relations Manager
918-995-5046
IR@empirepetrocorp.com
(END) Dow Jones Newswires
November 17, 2025 06:30 ET (11:30 GMT)
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