Empire Petroleum Reports Q4 and Full Year 2024 Results, Provides Updates
Empire Petroleum (NYSE American: EP), a leading oil and gas company with assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, has reported its financial and operational results for the fourth quarter (Q4) and full year 2024, alongside year-end 2024 proved reserves. The results reflect continued growth in production and significant advancements in technology, including the development of enhanced oil recovery (EOR) methods and a provisional patent application related to hydrocarbon vaporization.
Key Operational and Financial Highlights for Q4 and Full Year 2024:
- Production Performance: Empire reported Q4 2024 net production volumes of 2,356 barrels of oil equivalent per day (Boe/d), with 1,581 barrels of oil per day (Bbl/d). This represents a 22% increase in oil production compared to Q4 2023. The Boe/d composition for the quarter was 67% oil, 17% natural gas liquids (NGLs), and 16% natural gas.
- Enhanced Oil Recovery (EOR) Strategy: Empire’s Starbuck Drilling Program in North Dakota saw further progress in its EOR efforts. Following phase one of the EOR project, the company secured approval from the North Dakota Industrial Commission (NDIC) to convert two additional oil wells into injectors, advancing its strategy for long-term production growth. While the conversion of these wells temporarily lowered short-term production, it positions Empire for future increases in output.
- Hydrocarbon Vaporization Technology: In Q4 2024, Empire filed a provisional patent application with the United States Patent and Trademark Office for a technology related to hydrocarbon vaporization. Initial results from a 30-day peak period demonstrated an impressive 700% increase in production at the Starbuck field, achieved with only temporary solutions at the time. Empire is advancing the final design of this technology, with the intellectual property (IP) expected to be developed over the next 90-120 days.
- Expansion in Texas: Empire is expanding its technical focus into Texas. The company successfully completed the initial infrastructure necessary to start a new drilling program in the state, with drilling operations expected to commence in 2025.
- Proved Reserves and Cash Flow: At year-end 2024, Empire’s proved reserves stood at approximately 9.2 million barrels of oil equivalent (MMBoe). The discounted standardized measure of SEC proved reserves at a 10% discount was valued at $98.4 million. Without the 10% discount, future net cash flows were approximately $156.4 million, indicating significant future potential.
- Rights Offerings and Financial Support: Throughout 2024, Empire successfully completed two rights offerings, with strong shareholder participation. In Q1 2024, the company launched a $20.7 million rights offering at $5.00 per share, which was oversubscribed. A second offering in Q4 2024 raised an additional $10.0 million at $5.05 per share, also oversubscribed. These successful offerings reflect investor confidence in Empire’s long-term growth strategy.
- Revolving Credit Facility: Empire increased its revolving credit facility with Equity Bank from $10.0 million to $20.0 million in Q4 2024. The increase provides the company with more than $11.0 million in additional capacity, underscoring the strong relationship with Equity Bank and its confidence in Empire’s growth trajectory.
- Financial Performance: For the full year 2024, Empire reported total product revenue of $44.0 million. The company posted a net loss of $16.2 million, or ($0.54) per diluted share, primarily due to operational challenges associated with initial production optimization efforts related to the EOR program in North Dakota. However, Empire’s adjusted EBITDA for the year was $0.7 million, a significant improvement compared to a loss of ($2.4) million in 2023. The company anticipates resolving these non-recurring production challenges by Q2 2025.
Empire Petroleum’s 2024 results demonstrate significant progress in its operational and technological initiatives. The company remains committed to leveraging advanced recovery technologies to optimize production and ensure long-term growth. With plans to expand its drilling operations in Texas and the continued development of its proprietary hydrocarbon vaporization technology, Empire is poised for future success.
