Empire Petroleum (EP) Q4 2024 earnings summary

Executive summary

• Q4 2024 net production averaged 2,356 Boe/day, with oil volumes up 22% year-over-year and a product mix of 67% oil, 17% NGLs, and 16% natural gas.

• Full year 2024 product revenue reached $44.0 million, up from $40.1 million in 2023, with a net loss of $16.2 million.

• Adjusted EBITDA improved to $0.7 million in 2024 from ($2.4) million in 2023, though Q4 2024 was negative.

• Completed two oversubscribed rights offerings in 2024, raising $30.7 million.

• Expanded technical focus and infrastructure in the East Texas Basin, with new drilling and EOR initiatives expected in 2025.

Financial highlights

• Q4 2024 product revenue was $10.1 million, with average daily equivalent sales of 2,356 Boe/day.

• Lease operating expense per Boe decreased to $27.13 in Q4 2024 from $43.00 in Q4 2023; full-year 2024 was $31.16.

• Capital spend for 2024 totaled $42.2 million, primarily for drilling and completions in North Dakota.

• General & administrative expense per Boe in 2024 was $16.67; Q4 2024 was $19.52.

• Depreciation, depletion, and amortization (DD&A) and accretion totaled $11.3 million in 2024.

Outlook and guidance

• EOR equipment completion in North Dakota and five new horizontal drilling permits are expected to restore and grow production in 2025.

• Reclamation work for plugged and abandoned wells scheduled for Q2 2025.

• New drilling program in Texas to begin in 2025, leveraging proprietary technology.

• Continued workovers in New Mexico to maximize productivity and mitigate decline.