Empire Petroleum Corporation Reports $16.2 Million Net Loss for Fiscal Year 2024

Empire Petroleum Corporation reported a challenging financial performance for the fiscal year ending December 31, 2024, with a net loss of $16.2 million, a 30% increase from the previous year's loss of $12.5 million. Total revenues rose to $44.0 million, up from $40.1 million in 2023, primarily driven by a 19% increase in oil production volumes, which reached 581,159 barrels. However, this was offset by a decline in realized oil prices, which averaged $71.44 per barrel compared to $75.19 in the prior year. The company also experienced a significant drop in natural gas revenues, which fell by 80% to $343,503, attributed to depressed market conditions.

In terms of operational developments, Empire completed 13 new wells as part of its Starbuck Drilling Program in North Dakota, contributing to the increase in oil production. The company also expanded its asset base through strategic acquisitions, including additional working interests in New Mexico. Despite these efforts, the company faced challenges with rising operational costs, particularly in lease operating expenses, which decreased slightly to $27.5 million from $28.6 million, and a substantial increase in depreciation, depletion, and amortization expenses, which surged by 132% to $11.3 million.

Empire's financial position showed signs of strain, with a negative working capital of approximately $8.9 million as of December 31, 2024, a decline from $6.3 million the previous year. The company’s cash reserves also decreased by $5.5 million, primarily due to capital expenditures related to its drilling programs. To address liquidity concerns, Empire increased its revolving credit facility to $20 million and raised approximately $30.5 million through two rights offerings in 2024. However, the company acknowledged substantial doubt about its ability to continue as a going concern without additional funding from its major shareholders, Phil Mulacek and Energy Evolution, who collectively own over 53% of the company.

Looking ahead, Empire plans to continue its focus on optimizing production and managing costs while pursuing further acquisitions to enhance its asset portfolio. The company anticipates ongoing capital expenditures related to its drilling activities and aims to leverage its existing relationships with major shareholders for financial support. Despite the challenges faced in 2024, management remains committed to executing its business strategy to increase shareholder value through the development of oil and natural gas reserves.