EP · Empire Petroleum Corporation

Empire Petroleum reported Q1 2026 results reflecting lower production volumes of 1,880 Boe/d, including 1,248 Bbl/d oil, impacted by operational issues in North Dakota and New Mexico, plus weather-related force majeure in Texas. This drove a 15% decline in product revenue to $7.7 million from $9.0 million in Q1 2025, coupled with lower realized prices of $45.41/Boe (down 7%). Net loss widened to $6.6 million or ($0.18) per diluted share, with Adjusted EBITDA at ($0.7) million versus ($0.6) million prior year. Lease operating expenses fell to $5.2 million due to lower volumes and cost controls, though workovers rose to $0.6 million from Texas gas reactivation. DD&A dropped to $2.0 million on impairments and lower output, while G&A held steady at $17.00/Boe. Chairman Phil Mulacek highlighted Texas infrastructure gains, including over 500% compression increase to 3 MMcfd, enabling production growth toward 9 MMcfd in Q2, and thermal tech advancements in North Dakota's Starbuck with a new patent. President Mike Morrisett noted portfolio progress, including full participation in Louisiana three-well program. Capital was disciplined at $1.7 million in Texas versus $2.4 million planned. Financing strengthened via $10 million Rights Offering (Energy Evolution and Mulacek participated) and $3 million note settlement. New Mexico regulatory wins affirmed ROZ rights, suspending competitor SWD wells for potential opex relief. Outlook focuses on Texas reactivations/drilling from June, Louisiana completions by Q2 end, ND steam enhancements, positioning for cash flow growth amid stronger markets.