Empire Petroleum (EP) Q4 2025 earnings summary

Executive summary

• Advanced Texas gas development program in Q4-2025, focusing on well reactivation, recompletions, and deeper gas potential evaluation.

• Progressed hydrocarbon vaporization technology for enhanced oil recovery, despite production cuts from extreme cold weather.

• Launched and expanded a rights offering in Q1-2026 to raise up to $10M, with strong shareholder participation.

• Locked in crude oil swap contracts for 90% of estimated 2026 oil production at over $72/bbl.

• Full year 2025 net production averaged 2,242 Boe/d (64% oil, 18% NGLs, 18% gas), with Q4-2025 at 2,161 Boe/d, down 10% sequentially and 8% year-over-year.

Financial highlights

• FY 2025 total product revenue: $34.2M; net loss: $72.1M, driven by lower realized prices, reduced production, and a $51.3M impairment.

• Q4-2025 net loss: $59.0M, primarily due to impairment.

• FY 2025 Adjusted EBITDA: ($5.4M), down from $0.7M in 2024.

• Year-end 2025 SEC proved reserves were 7.6 MMBoe (77% oil), down from 9.2 MMBoe at year-end 2024.

• Total capital expenditures for 2025: $4.6M.

Outlook and guidance

• 2026 Texas program to scale from 10-12 to 12-30 wells, with expanded compression and infrastructure.

• Compression capacity at Texas Midstream plant to increase over 600% to 9.5 MMcfd in Q2-2026.

• Deep gas and liquids development to move into well activity in Q2-2026.

• Louisiana: final due diligence on a three-well participation opportunity.

• North Dakota: focus on water purification, facility upgrades, and EOR model expansion.