Empire Petroleum (EP) Q2 2025 earnings summary

Executive summary

• Q2-2025 net production reached 2,357 Boe/d, up 15% sequentially, with oil comprising 63% of the mix; net loss widened to $5.1MM, or ($0.15) per share, due to a 23% year-over-year drop in realized oil prices.

• Adjusted EBITDA for Q2-2025 was ($1.2MM), down from $1.7MM in Q2-2024, reflecting lower commodity prices despite higher production.

• Total product revenue for Q2-2025 was $8.7MM, down 32% year-over-year, driven by lower oil sales volumes and realized prices.

• For H1-2025, revenue was $17.7MM, down 20% year-over-year, with a net loss of $9.3MM versus $8.4MM in the prior year.

• Operational momentum driven by EOR progress in North Dakota and preparations for Texas drilling.

Financial highlights

• Q2-2025 product revenue: $8.7MM; net loss: $5.1MM; Adjusted EBITDA: ($1.2MM); operating loss: $4.9MM.

• Oil sales volumes for Q2-2025 were 135,854 Bbl, down 15% year-over-year; realized oil price was $58.92/Bbl, down 23%.

• Lease operating expense for Q2-2025 was $6.4MM, down 15% year-over-year, mainly due to lower workover costs.

• General & administrative expense per Boe (excl. stock comp): $13.55 in Q2-2025; total G&A rose to $2.9MM due to higher headcount.

• Cash on hand as of 6/30/2025: ~$2.3MM; credit facility availability: ~$4.0MM.

Outlook and guidance

• EOR program in North Dakota expected to reach steady-state production by end of Q4-2025, supporting long-term growth.

• Texas drilling operations set to commence in Q4-2025, targeting multiple pay zones for scalable development.

• Management expects commodity prices to rebound over the next 6–9 months, supporting higher production.

• Anticipates a regulatory ruling in New Mexico in Q3-2025, with potential for reduced operating expenses and improved financial performance.

• Management expects negative working capital to persist through 2025 and operating cash flows to remain insufficient to meet obligations over the next 12 months.