10-K - Empire Petroleum Corporation | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Empire Petroleum Corporation reported a challenging FY 2025 with a net loss of $72.1 million, driven by a significant $51.3 million impairment charge on oil and gas properties. Total revenue declined to $34.2 million from $44.0 million in FY 2024, primarily due to lower average realized prices for oil and NGLs and decreased oil production volumes. The company generated negative operating cash flow of $3.9 million and ended the year with negative working capital of $16.2 million, raising substantial doubt about its ability to continue as a going concern. Management's plans to alleviate this doubt rely on continued financial support from its two largest stockholders, Phil Mulacek and Energy Evolution Master Fund, Ltd.

Key Takeaways

1Reported a net loss of $72.1 million for FY 2025, including a $51.3 million non-cash impairment charge.

2Total revenue decreased 22.3% year-over-year to $34.2 million due to lower commodity prices and production.

3Ended the year with negative working capital of $16.2 million and $1.2 million in cash on hand.

4Production totaled 818,303 Boe for FY 2025, down from 884,076 Boe in the prior year.

5Proved developed reserves declined to 7,625 MBoe at year-end 2025 from 9,227 MBoe at year-end 2024.

Key Financial Metrics

EPS

-$2.00

-$2.00 per share basic and diluted

Revenue

$34.2M

-22.3%

Net Income

-$72.1M

-344.9%

free cash flow

-$8.6M