Empire Petroleum Corporation reported significant financial developments for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for the third quarter reached $11.4 million, up from $9.1 million, while revenue for the nine months increased to $33.6 million from $28.9 million. The growth in revenue was primarily driven by oil sales, which rose to $10.3 million in Q3 2024 from $9.5 million in Q3 2023, reflecting a 9% increase. However, natural gas revenues saw a dramatic decline of 98%, dropping to $8,547 from $411,217 in the prior year.
Despite the revenue growth, Empire reported increased operating losses, with a Q3 operating loss of $3.4 million compared to $2.6 million in Q3 2023, and a nine-month operating loss of $9.7 million, up from $7.2 million. The net loss for the third quarter was $3.6 million, a 32% increase from the previous year's loss of $2.7 million, while the nine-month net loss rose to $12 million from $7.7 million.
Empire's total assets grew significantly from $92.6 million at the end of 2023 to $121.2 million by September 30, 2024, driven by a substantial increase in oil and natural gas properties, which rose to $136.4 million from $93.5 million. Total stockholders' equity also improved, increasing to $56.5 million from $35 million.
The company faced challenges with liquidity, reporting negative working capital of $(15.3 million) as of September 30, 2024, a decrease from $(6.3 million) at the end of 2023. Cash reserves fell to $3.1 million from $7.8 million, and current liabilities increased to $(27 million) from $(25 million). Empire was not in compliance with the current ratio covenant of its revolving credit line but received a waiver from its lender.
Strategically, Empire has been active in its drilling programs, completing 13 wells in North Dakota and acquiring additional working interests in New Mexico. The company also initiated a subscription rights equity offering in November 2024 to address financial obligations, with major shareholders indicating their willingness to provide financial support.
Overall, while Empire Petroleum Corporation experienced revenue growth and asset expansion, it also faced increased losses and liquidity challenges, necessitating strategic financial maneuvers to ensure operational continuity.
About EMPIRE PETROLEUM CORP
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