Empire Petroleum (EP) Q2 2026 earnings summary

Executive summary

• Revenues increased year-over-year due to higher realized oil prices, partially offset by lower production volumes and significant derivative losses.

• Net loss narrowed to $1.9 million for Q2 2026 from $5.1 million in Q2 2025, and to $8.5 million for the six months ended June 30, 2026, from $9.3 million in the prior year.

• Q2-2026 net production averaged 1,825 Boe/d, with 70% oil, 18% NGLs, and 12% natural gas.

• Major operational milestones included the first drilling rig in Texas, significant infrastructure upgrades boosting gas compression capacity by 700%, and five wells brought online.

• The company remains focused on optimizing and developing oil and gas properties, with ongoing cost reduction efforts and capital investments in core areas.

Financial highlights

• Q2 2026 total product revenues were $11.1 million, up 27% year-over-year; six-month revenues were $18.8 million, up from $17.7 million year-over-year.

• Net loss per share was $(0.05) for Q2 2026 and $(0.22) for the six months ended June 30, 2026.

• Lease operating expenses decreased to $5.0 million due to lower production and cost controls, but workover expenses increased.

• Adjusted EBITDA improved to $0.4 million from ($1.2) million in Q2-2025.

• Cash flow from operations was negative, with $3.7 million used in operating activities for the six months ended June 30, 2026.

Outlook and guidance

• Texas development momentum expected to continue in H2-2026, with more wells coming online and infrastructure improvements supporting higher gas volumes.

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

• Related parties have committed to provide financial support as needed, and management is seeking further capital via debt or equity markets.

• Louisiana program to generate revenue in the remainder of 2026 as completions are targeted for Q4.

• North Dakota to initiate steam injection in Q3-2026, with further well reactivations and facility upgrades planned.