Empire Petroleum (EP) - 2025 Q3 - Quarterly Results

Production and Sales Performance - Q3-2025 net production volumes reached 1,566 barrels of oil per day, a 5% increase from Q2-2025, with total equivalent production at 2,398 Boe/d[2] - Total product revenue for Q3-2025 was $9.4 million, down 14% from $10.9 million in Q3-2024, primarily due to lower realized prices for oil and NGLs[11] - Oil sales revenue increased to $8,790 million for the three months ended September 30, 2025, compared to $8,005 million in the previous quarter, reflecting a 9.8% increase[22] - Average daily equivalent sales for the three months ended September 30, 2025, were 2,398 Boe/d, up from 2,357 Boe/d in the previous quarter[24] - Average price per barrel of oil was $61.00 for the three months ended September 30, 2025, compared to $58.92 in the previous quarter, representing a 3.7% increase[24] Financial Performance - The company reported a net loss of $3.8 million in Q3-2025, or ($0.11) per diluted share, compared to a net loss of $3.6 million in Q3-2024[15] - Adjusted EBITDA for Q3-2025 was $0.1 million, a significant improvement from an adjusted EBITDA of ($0.1) million in Q3-2024[15] - Total revenue for the three months ended September 30, 2025, was $9,388 million, a decrease of 7.5% compared to $10,892 million for the same period in 2024[22] - Net loss for the three months ended September 30, 2025, was $3,844 million, an improvement from a net loss of $5,056 million in the same quarter of 2024[22] - Adjusted net loss for the three months ended September 30, 2025, was $3,934,000, compared to $5,231,000 for the previous quarter, reflecting a decrease of 24.8%[32] - EBITDA for the three months ended September 30, 2025, was $(11,000), a significant improvement from $(1,492,000) in the previous quarter[35] - Adjusted EBITDA for the nine months ended September 30, 2025, was $940,000, compared to $(1,597,000) for the same period in 2024, indicating a turnaround in performance[35] Operational Developments - Empire successfully completed a Rights Offering in Q3-2025, generating approximately $2.5 million in gross proceeds, with over 100% subscription of available securities[2] - The company is advancing its enhanced oil recovery efforts in North Dakota, with system upgrades expected to improve reliability and reduce long-term operating costs[4] - Empire plans to initiate its first drilling campaign in Texas in 2026, aligning capital development with market conditions[2] - The company is building operational flexibility by progressing a series of drilled-but-uncompleted wells, positioning for higher-value gas development in 2026[3] Cost Management - Lease operating expenses decreased to $5.7 million in Q3-2025 from $6.7 million in Q3-2024, primarily due to lower workover costs[12] - Lease operating expenses per Boe decreased to $25.99 for the three months ended September 30, 2025, from $29.78 in the previous quarter, indicating a 12.5% reduction[24] Cash and Assets - As of September 30, 2025, Empire had approximately $4.6 million in cash and $3.3 million available on its credit facility[17] - Total current assets increased to $14,686 million as of September 30, 2025, compared to $12,351 million at the end of December 2024[26] - Total liabilities rose to $69,329 million as of September 30, 2025, compared to $61,103 million at the end of December 2024, reflecting a 13.7% increase[26] - Total stockholders' equity decreased to $53,663 million as of September 30, 2025, down from $62,765 million at the end of December 2024[26] - The company reported a net cash increase of $2,308,000 for the three months ended September 30, 2025, compared to an increase of $1,212,000 in the previous quarter[29] - Total cash at the end of the period was $4,601,000, up from $2,293,000 at the beginning of the period[29] Shareholder Information - The company reported a weighted-average number of common shares outstanding of 34,043,173 for the three months ended September 30, 2025[22] - The diluted weighted-average number of common shares outstanding increased to 34,043,173 for the three months ended September 30, 2025, from 33,853,310 in the previous quarter[32] - Stock-based compensation for the three months ended September 30, 2025, was $238,000, down from $486,000 in the previous quarter[35]