Empire Petroleum Reports Financial Results for First Quarter 2026 and Provides Operational Update
TULSA, Okla.--( BUSINESS WIRE)--Empire Petroleum Corporation (NYSE American: EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today announced financial results for first quarter 2026 and an update on current operations.
FIRST QUARTER 2026 HIGHLIGHTS
2026 OUTLOOK
“Global energy markets continue to be shaped by tight supply responses, growing demand for dependable gas supply, and the increasing value of assets with repeatable development potential,” said Phil Mulacek, Chairman of the Board of Empire. “In Texas, our efforts have focused on infrastructure readiness, where we increased field compression over 500%, allowing for selective in-field development. The increase in compression de-bottlenecked the choke points in our production capacity and advanced our Texas development to take advantage of the higher oil prices and be ready for stronger gas sales. We’re making steady progress across existing zones, and we believe we are getting closer to key evaluation points in deeper production intervals, including portions of the consolidated Cotton Valley-Bossier and Western Haynesville intervals. In North Dakota, continued application of our thermal recovery technology is improving our understanding of how heat can be applied more effectively across the asset, and we are re-working wells to increase oil production. Field results across Empire’s portfolio are helping to inform how we approach the opportunities over time, guided by geologic, operational, and vastly stronger market factors.”
Mike Morrisett, President & CEO, added, “The first quarter was about moving work forward across our portfolio and carrying that momentum into initial production contributions in Texas, supported by improved infrastructure and system capacity, while also taking steps to strengthen Empire’s financial and operational position and flexibility. In Louisiana, our election to participate across the three-well program expands our exposure while allowing us to assess field-level performance and inform future development decisions. Across all assets, we’re working through projects in sequence by restoring oil production, improving reliability, and building operating history that supports growing cash flow contribution over time.”
Texas – East Texas Basin & Louisiana
North Dakota – Williston Basin
New Mexico – Permian Basin
FIRST QUARTER 2026 FINANCIAL AND OPERATIONAL RESULTS
1,880
2,161
-13%
2,049
-8%
1,248
1,359
-8%
1,329
-6%
$45.41
$35.46
28%
$48.76
-7%
$7,684
$7,049
9%
$8,992
-15%
($6,642)
($58,953)
89%
($4,221)
-57%
($3,470)
($8,146)
57%
($4,253)
18%
($730)
($3,794)
81%
($553)
-32%
1 Adjusted net loss and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measure.
Net sales volumes for Q1-2026 were 1,880 Boe/d, including 1,248 barrels of oil per day; 196 barrels of NGLs per day, and 2,617 thousand cubic feet per day (“Mcf/d”) or 436 Boe/d of natural gas. Oil sales volumes for Q1-2026 slightly decreased compared Q1-2025 primarily due to natural decline and operational challenges in North Dakota and New Mexico.
Empire reported Q1-2026 total product revenue of $7.7 million versus $9.0 million in Q1-2025. The decrease is primarily due to a lower overall production in North Dakota and New Mexico and lower realized prices across all commodities.
Lease operating expenses in Q1-2026 decreased to $5.2 million versus $5.8 million for Q1-2025, primarily due to lower production and efforts by the Company to reduce overall operating costs. The decrease was partially offset by an increase in workover expense period over period. Workover expenses were approximately of $0.6 million in Q1-2026 compared to $0.4 million for Q1-2025. Higher workover expense in Q1-2026 was primarily in Texas due to Empire’s gas development program.
Production and ad valorem taxes for Q1-2026 were $0.5 million versus $0.7 million in Q1-2025, as a result of decreased product revenues.
Depreciation, Depletion, and Amortization (“DD&A”) and Accretion for Q1-2026 was $2.0 million versus $2.8 million for Q1-2025. The decrease in DD&A is primarily due to the impact of impairments in the fourth quarter of 2025 and lower production volumes period over period, partially offset by the additional interests acquired in New Mexico in Q1-2026. Accretion increased slightly due to the additional interest acquired in New Mexico.
General and administrative expenses, excluding share-based compensation expense, was $2.9 million, or $17.00 per Boe in Q1-2026 versus $3.2 million, or $17.34 per Boe in Q1-2025. The slight decrease in expenses was primarily due to a decrease in employee costs due to lower headcount in Q1-2026.
Total interest expense for Q1-2026 compared to Q1-2025 resulted in a slight increase due to a higher outstanding balance under the Company’s credit facility and additional equipment and vehicle notes. Additionally, the Company’s non-cash based interest expense was higher in 2026 due to the remaining unamortized discount related to the convertible promissory note issued on September 24, 2025, being fully amortized upon full repayment during the quarter.
Empire recorded a net loss of $6.6 million in Q1-2026, or ($0.18) per diluted share, versus a Q1-2025 net loss of $4.2 million, or ($0.12) per diluted share.
Adjusted EBITDA was ($0.7) million for Q1-2026 compared to Adjusted EBITDA of ($0.6) million in Q1-2025.
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For Q1-2026, Empire incurred approximately $1.9 million of total additions to oil and natural gas properties, which is primarily from the Company’s gas development program in Texas.
Empire successfully completed a Rights Offering in March 2026, which raised approximately $10.0 million of gross proceeds, before transaction costs.
As of March 31, 2026, Empire had approximately $8.8 million in cash on hand, primarily from the Rights Offering completed in March 2026, and approximately $2.7 million available on its credit facility.
UPDATED PRESENTATION
An updated Company presentation will be posted to the Company’s website under the Investor Relations section.
ABOUT EMPIRE PETROLEUM
Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. More information about Empire can be found at www.empirepetroleumcorp.com.
SAFE HARBOR STATEMENT
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s estimates, strategy, and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2025, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, future commodity prices, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, including inflation, tariffs and interest rates, uncertainties associated with legal and regulatory matters, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.
EMPIRE PETROLEUM CORPORATION
For the Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
$
7,302
$
6,804
$
8,049
185
(67
)
548
197
312
395
7,684
7,049
8,992
10
10
10
(2,591
)
-
-
5,103
7,059
9,002
5,160
7,335
5,766
507
619
712
1,417
2,999
2,226
-
51,289
-
535
545
526
2,876
3,011
3,197
189
168
531
3,065
3,179
3,728
10,684
65,966
12,958
(5,581
)
(58,907
)
(3,956
)
(480
)
(529
)
(296
)
(659
)
-
-
78
483
31
(6,642
)
(58,953
)
(4,221
)
-
-
-
$
(6,642
)
$
(58,953
)
$
(4,221
)
$
(0.18
)
$
(1.71
)
$
(0.12
)
$
(0.18
)
$
(1.71
)
$
(0.12
)
36,003,701
34,501,251
33,821,203
36,003,701
34,501,251
33,821,203
EMPIRE PETROLEUM CORPORATION
For the Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
112,317
125,059
119,635
235,517
215,921
199,868
17,628
37,743
31,453
169,197
198,788
184,400
1,880
2,161
2,049
$
65.01
$
54.41
$
67.28
$
0.79
$
(0.31
)
$
2.74
$
11.18
$
8.27
$
12.56
$
45.41
$
35.46
$
48.76
$
30.51
$
36.90
$
31.27
$
3.00
$
3.11
$
3.86
$
11.54
$
17.83
$
14.92
$
17.00
$
15.15
$
17.34
$
1.12
$
0.85
$
2.88
$
18.12
$
16.00
$
20.22
EMPIRE PETROLEUM CORPORATION
For the Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
$
(6,642
)
$
(58,953
)
$
(4,221
)
189
168
531
119
111
121
1,417
2,999
2,226
535
545
526
-
51,289
-
2,591
-
-
-
-
-
(78
)
(484
)
-
115
29
-
-
113
-
659
-
-
-
2
(32
)
(815
)
546
279
(192
)
(44
)
(199
)
50
(71
)
94
1,209
1,012
1,676
63
(192
)
599
(190
)
179
13
(970
)
(2,751
)
1,613
-
-
-
(1,170
)
(1,130
)
(2,680
)
-
2
49
(13
)
(1
)
(18
)
(109
)
(100
)
(113
)
(1,292
)
(1,229
)
(2,762
)
(1,000
)
-
-
3,000
-
-
(2,000
)
-
-
(90
)
(210
)
(21
)
9,948
-
-
-
778
-
9,858
568
(21
)
7,596
(3,412
)
(1,170
)
1,189
4,601
2,251
$
8,785
$
1,189
$
1,081
EMPIRE PETROLEUM CORPORATION
March 31,
December 31,
2026
2025
$
8,785
$
1,189
5,955
5,122
1,452
1,262
1,109
607
17,301
8,180
152,621
148,238
(94,747
)
(93,425
)
57,874
54,813
1,821
1,486
59,695
56,299
999
1,394
$
77,995
$
65,873
$
12,735
$
10,799
12,679
12,616
2,591
-
307
286
954
641
29,266
24,342
13,899
14,415
-
1,023
105
12
-
281
31,036
30,406
74,306
70,479
-
-
99
94
163,123
148,191
(159,533
)
(152,891
)
3,689
(4,606
)
$
77,995
$
65,873
Empire Petroleum Corporation
Non-GAAP Information
Certain financial information included in Empire’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include “Adjusted Net Loss”, “EBITDA” and “Adjusted EBITDA”. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Adjusted net loss is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.
For the Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
(in thousands, except share and per share data)
$
(6,642
)
$
(58,953
)
$
(4,221
)
2,591
-
-
(78
)
(484
)
-
-
2
(32
)
659
-
-
-
-
-
-
51,289
-
$
(3,470
)
$
(8,146
)
$
(4,253
)
36,003,701
34,501,251
33,821,203
$
(0.10
)
$
(0.24
)
$
(0.13
)
The Company defines adjusted EBITDA as net loss plus net interest expense, DD&A, accretion, amortization of right of use assets, income tax provision (benefit), and other adjustments. Company management believes this presentation is relevant and useful because it helps investors understand Empire’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income (loss), as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, adjusted EBITDA does not represent funds available for discretionary use.
For the Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
$
(6,642
)
$
(58,953
)
$
(4,221
)
480
529
296
1,417
2,999
2,226
-
51,289
-
535
545
526
119
111
121
$
(4,091
)
$
(3,480
)
$
(1,052
)
189
168
531
-
-
-
2,591
-
-
(78
)
(484
)
-
659
-
-
-
2
(32
)
$
(730
)
$
(3,794
)
$
(553
)