Empire Petroleum (EP) Q3 2025 earnings summary

Executive summary

• Q3-2025 net oil production reached 1,566 Bbls/d, up 5% sequentially, with total equivalent production at 2,398 Boe/d, comprised of 65% oil, 19% NGLs, and 16% natural gas.

• Q3-2025 product revenue was $9.4 million, with a net loss of $3.8 million, or ($0.11) per diluted share, primarily due to lower realized commodity prices year-over-year.

• Adjusted EBITDA for Q3-2025 was $0.1 million, reflecting challenging pricing conditions.

• Completed a $2.5 million rights offering in August 2025, with strong shareholder participation, and secured additional related-party financing.

• Enhanced oil recovery (EOR) upgrades in North Dakota improved reliability and consistency, with further system refinements and a new water injection system implemented.

Financial highlights

• Q3-2025 total product revenue: $9.4 million, down 14% year-over-year; net loss: $3.8 million; Adjusted EBITDA: $0.1 million.

• Lease operating expenses for Q3-2025 were $5.7 million, a 15% decrease from Q3-2024; lease operating expense per Boe was $25.99, down from $29.75.

• Average realized oil price in Q3-2025: $61.00/Bbl, down 15% from Q3-2024; NGL: $9.25/Bbl; natural gas: $0.94/Mcf.

• Cash on hand as of 9/30/2025 was $4.6 million, with $3.3 million available on the credit facility.

• Net cash provided by operating activities was $14.9 million for the nine months ended September 30, 2025, compared to $29.7 million in the prior year.

Outlook and guidance

• Enhanced oil recovery (EOR) efforts in North Dakota are expected to deliver stable production by year-end 2025.

• Texas development program is set to begin gas operations in late 2025, with drilling paced for 2026 to align with commodity prices.

• Management expects negative working capital to persist through year-end 2025, with operating cash flows insufficient to meet all obligations.

• Ongoing regulatory proceedings in New Mexico may impact future development timelines.

• Anticipates natural gas to play a larger role in development and earnings growth from 2026, leveraging DUC wells for flexibility.