Empire Petroleum (EP) investor relations material

Executive summary

• Q1 2026 net loss was $6.6 million, or ($0.18) per share, a 57% increase year-over-year, driven by lower production and realized prices, with production averaging 1,880 Boe/d (66% oil), down 8% year-over-year due to operational and weather disruptions.

• Product revenue totaled $7.7 million, a 15% decrease from Q1 2025, with oil, gas, and NGL sales volumes and prices all lower.

• A $10 million rights offering was completed in March 2026, strengthening liquidity and satisfying $5 million in debt; a $3 million convertible note was settled via equity issuance.

• Acquired the remaining 40% of certain New Mexico interests for $1.8 million in stock and participated in a new Louisiana development program.

• Patent allowance received for proprietary steam generation technology in North Dakota; legal affirmation of exclusive rights to ROZ in New Mexico, with further appeals and hearings pending.

Financial highlights

• Q1 2026 total product revenue was $7.7 million, down from $9.0 million in Q1 2025.

• Adjusted EBITDA for Q1 2026 was ($0.7) million, compared to ($0.6) million in Q1 2025.

• Operating loss for Q1 2026 was $5.6 million, compared to $4.0 million in Q1 2025.

• Cash on hand as of March 31, 2026, was $8.8 million, with $2.7 million available on the credit facility.

• Capital expenditures for Q1 2026 totaled $1.9 million, mainly for Texas gas development.

Outlook and guidance

• Texas gas volumes are expected to rise in Q2 2026 as more wells are reactivated and compression units installed, targeting throughput of ~9 MMcfd.

• Louisiana program involves a three-well development, with drilling and casing by end of Q2 2026 and technical updates to follow.

• North Dakota operations focus on steam unit enhancements and water management upgrades, with technology improvements scheduled for May 2026.

• Management expects negative working capital to persist through 2026, with additional funding potentially required.

• Ongoing legal and regulatory actions in New Mexico and North Dakota could impact future operations and expenses.