EP Empire Petroleum Corporation

Empire Petroleum (NYSE American: EP) (“Empire” or the “Company”), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas and Louisiana, today announced operational and financial results for the second quarter of 2023.

KEY SECOND QUARTER AND RECENT HIGHLIGHTS

• Grew average daily oil sales volumes by 6% sequentially and 4% year-over-year;
  • Produced sales volumes of 2,135 barrels of oil equivalent per day (“Boe/d”) (66% oil, 16% natural gas liquids (“NGLs”) and 18% natural gas) compared to 2,206 Boe/d (61% oil, 20% NGLs, and 19% natural gas) for the first quarter of 2023. Sales volumes for the second quarter of 2022 were 2,158 Boe/d (63% oil, 19% NGLs, and 18% natural gas);
• Reported revenue of $9.7 million, a net loss of $2.5 million, or $0.11 per diluted share, and an Adjusted Net Loss1 of $2.4 million, or $0.11 per diluted share;
• Generated Adjusted EBITDA1 of $0.2 million;
• Ended the second quarter of 2023 with $1.6 million of liquidity;
• Continued its targeted development program that began in 2022, with capital spending of $3.1 million for the first half of 2023 reflecting recompletion and other well activities across Empire’s portfolio of assets and sidetrack drilling projects in North Dakota; and
• Recently announced that on August 9, 2023, the Company and an indirect wholly-owned subsidiary of Energy Evolution Master Fund, Ltd. – Empire’s largest shareholder – had collectively acquired additional working interests in the Company’s three properties located in Lea County, New Mexico, including Eunice Monument South Unit A, Eunice Monument South Unit B, and Arrowhead Grayburg Unit.

1. Adjusted Net Income (Loss), EBITDA 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.

MANAGEMENT COMMENTARY

Mike Morrisett, President and Chief Executive Officer of Empire, commented, “While commodity prices were depressed in the second quarter, we have been pleased to see a material improvement in pricing during the third quarter. Our second quarter oil production began to demonstrate the effects of our development campaign that we began in the latter part of 2022 on our North Dakota assets and these efforts are expanding in the second half of 2023. We are leveraging the lessons learned as we accelerate our development activities across our asset base to drive a meaningful increase in production levels and cash flow for the near and long-term benefit of our shareholders.”

Mr. Morrisett concluded, “Our ongoing success is a direct result of the efforts we have undertaken over the past year to expand our knowledge of the assets we acquired over the past three years. Central to this has been the hiring of key professionals that provide best-in-class technical and management experience. The more we learn about the assets in our portfolio, the more we like them. We look forward to keeping the investment community apprised of our progress as we kick off the most significant development program in the history of the Company.”

FINANCIAL AND OPERATIONAL RESULTS FOR SECOND QUARTER 2023

 

 

 

Q2 2023

 

 

Q1 2023

 

 

% Change Q2 2023 vs. Q1 2023

 

 

Q2 2022

 

 

% Change Q2 2023 vs. Q2 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (Boe/d)

 

 

 

 

2,135

 

 

 

2,206

 

 

 

(3

%)

 

 

2,158

 

 

 

(1

%)

Net sales (Boe)

 

 

 

 

194,306

 

 

 

198,549

 

 

 

(2

%)

 

 

196,412

 

 

 

(1

%)

Realized price - all products ($/Boe)

 

 

 

$

50.22

 

 

$

50.87

 

 

 

(1

%)

 

$

79.90

 

 

 

(37

%)

Revenue ($M)

 

 

 

$

9,710

 

 

$

10,052

 

 

 

(3

%)

 

$

15,693

 

 

 

(38

%)

Net income (loss) ($M)

 

 

 

$

(2,464)

 

 

$

(2,460)

 

 

 

--

$

5,534

 

 

 

NM

Adjusted Net Income (Loss) ($M)

 

 

 

$

(2,398)

 

 

$

(1,858)

 

 

 

(29

%)

 

$

5,920

 

 

 

NM

 

Adjusted EBITDA ($M)

 

 

 

$

171

 

 

$

228

 

 

 

(25

%)

 

$

7,362

 

 

 

(98

%)

NM – Not meaningful due to a change in signs.

Net sales were 2,135 Boe/d, including 1,411 barrels of oil per day; 337 barrels of NGLs per day, and 2,322 thousand cubic feet per day (“Mcf/d”), or 387 Boe/d, of natural gas. This is compared to net sales for the first quarter of 2023 of 2,206 Boe/d, including 1,336 barrels of oil per day; 442 barrels of NGLs per day, and 2,569 thousand cubic feet per day (“Mcf/d”), or 428 Boe/d, of natural gas. Contributing to the sequential increase in oil sales volumes was increased production from Empire’s assets in North Dakota associated with the Company’s targeted capital development program that began in the second half of 2022.

Empire reported $9.7 million of revenue versus $10.1 million for the first quarter of 2023. Offsetting the increase in oil sales volumes was lower NGLs and natural gas sales volumes and a slight decrease in overall realized pricing.

Lease operating expenses were $7.1 million ($36.54 per Boe) compared to $6.5 million ($32.84 per Boe) for the first quarter of 2023. The second quarter included $0.6 million of plug and abandonment expense.

Production and ad valorem taxes were $0.7 million, which was a slight decrease from $0.8 million for the first quarter of 2023, and were 7.4% and 7.5% of total product revenue, respectively, for the second and first quarters of 2023.

General and administrative (“G&A”) expense, excluding non-cash share-based compensation expense, was $1.9 million ($9.75 per Boe) versus $3.0 million ($15.23 per Boe) for the first quarter of 2023. The first quarter included $0.4 million, or $1.89 per Boe, of cash severance costs associated with departure of the Company’s previous Chief Executive Officer.

Empire recorded a net loss of $2.5 million, or $0.11 per diluted share, which was flat with the first quarter of 2023. The Company posted an Adjusted Net Loss for the second quarter of 2023 of $2.4 million, or $0.11 per diluted share, versus an Adjusted Net Loss of $1.9 million, or $0.08 per diluted share, in the first quarter of 2023.

Adjusted EBITDA was $0.2 million, which was flat with the first quarter of 2023.

CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY

For the three months and six months ended June 30, 2023, the Company invested approximately $0.9 million and $3.1 million, respectively, in capital expenditures primarily related to recompletion and other activities in multiple states as Empire seeks to bring production online from existing wells and new production online from sidetrack drilling in North Dakota.

Total liquidity at the end of the second quarter of 2023 was $1.6 million, including $1.3 million of cash and $0.3 million of availability on the Company’s credit facility. Empire remains squarely focused on continuing to execute on its strategy to remain financially conservative and target opportunities that provide long-term value for the Company’s shareholders.

ABOUT EMPIRE PETROLEUM

Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana, and New Mexico. 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, 2022, 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, 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, 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 Condensed Consolidated Statements of Operations (Unaudited)   Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,

2023

2023

2022

2023

2022

Revenue: Oil Sales

$

9,147,611

 

$

8,938,715

 

$

13,329,366

 

$

18,086,326

 

$

23,745,788

 

Gas Sales (1)

 

248,686

 

 

656,035

 

 

1,321,896

 

 

904,721

 

 

2,205,798

 

Natural Gas Liquids ("NGLs") Sales (1)

 

362,181

 

 

504,954

 

 

1,041,136

 

 

867,135

 

 

2,256,630

 

Total Product Revenues

 

9,758,478

 

 

10,099,704

 

 

15,692,398

 

 

19,858,182

 

 

28,208,216

 

Other

 

18,361

 

 

19,364

 

 

24,913

 

 

37,725

 

 

48,956

 

Gain (Loss) on Derivatives

 

(66,657

)

 

(66,823

)

 

(23,893

)

 

(133,480

)

 

(136,214

)

Total Revenue

 

9,710,182

 

 

10,052,245

 

 

15,693,418

 

 

19,762,427

 

 

28,120,958

 

  Costs and Expenses: Lease Operating Expense

 

7,099,000

 

 

6,520,163

 

 

4,656,901

 

 

13,619,163

 

 

9,229,302

 

Production and Ad Valorem Taxes

 

721,275

 

 

758,114

 

 

1,137,841

 

 

1,479,389

 

 

2,039,079

 

Depletion, Depreciation & Amortization

 

711,042

 

 

622,489

 

 

455,799

 

 

1,333,531

 

 

890,245

 

Accretion of Asset Retirement Obligation

 

405,361

 

 

401,275

 

 

336,488

 

 

806,636

 

 

666,488

 

General and Administrative Expense: General and Administrative

 

1,894,204

 

 

3,023,279

 

 

2,795,548

 

 

4,917,483

 

 

4,874,650

 

Stock-Based Compensation

 

1,180,806

 

 

949,639

 

 

486,904

 

 

2,130,445

 

 

863,182

 

Total General and Administrative Expense

 

3,075,010

 

 

3,972,918

 

 

3,282,452

 

 

7,047,928

 

 

5,737,832

 

  Total Cost and Expenses

 

12,011,688

 

 

12,274,959

 

 

9,869,481

 

 

24,286,647

 

 

18,562,946

 

  Operating Income (Loss)

 

(2,301,506

)

 

(2,222,714

)

 

5,823,937

 

 

(4,524,220

)

 

9,558,012

 

  Other Income and (Expense): Interest Expense

 

(184,887

)

 

(237,299

)

 

(111,785

)

 

(422,186

)

 

(222,433

)

Other Income (Expense)

 

21,484

 

 

422

 

 

(177,872

)

 

21,906

 

 

(177,872

)

  Income (Loss) before Taxes

 

(2,464,909

)

 

(2,459,591

)

 

5,534,280

 

 

(4,924,500

)

 

9,157,707

 

  Income Tax (Provision) Benefit

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

  Net Income (Loss)

$

(2,464,909

)

$

(2,459,591

)

$

5,534,280

 

$

(4,924,500

)

$

9,157,707

 

  Net Income (Loss) per Common Share: Basic

$

(0.11

)

$

(0.11

)

$

0.27

 

$

(0.22

)

$

0.45

 

Diluted

$

(0.11

)

$

(0.11

)

$

0.24

 

$

(0.22

)

$

0.41

 

Weighted Average Number of Common Shares Outstanding: Basic

 

22,105,704

 

 

22,096,796

 

 

20,424,970

 

 

22,101,264

 

 

20,145,955

 

Diluted

 

22,105,704

 

 

22,096,796

 

 

23,294,723

 

 

22,101,264

 

 

22,233,826

 

  (1) Presentation for the three and six months ended June 30, 2022 reflects reclassification of gathering and processing costs from lease operating expense, which is consistent with the presentation of results for the three and six months ended June 30, 2023 and three months ended March 31, 2023. EMPIRE PETROLEUM CORPORATION Condensed Operating Data (Unaudited)   Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,

2023

2023

2022

2023

2022

  Net Production Volumes: Oil (Bbl)

 

128,413

 

120,257

 

123,167

 

248,670

 

237,422

Natural gas (Mcf)

 

211,293

 

231,218

 

208,363

 

442,511

 

422,308

Natural gas liquids (Bbl)

 

30,678

 

39,756

 

38,518

 

70,434

 

78,670

Total (Boe)

 

194,306

 

198,549

 

196,412

 

392,856

 

386,477

  Average daily equivalent sales (Boe/d)

 

2,135

 

2,206

 

2,158

 

2,170

 

2,135

  Average Price per Unit: Oil ($/Bbl)

$

71.24

$

74.33

$

108.22

$

72.73

$

100.02

Natural gas ($/Mcf)

$

1.18

$

2.84

$

6.34

$

2.04

$

5.22

Natural gas liquids ($/Bbl)

$

11.81

$

12.70

$

27.03

$

12.31

$

28.68

Total ($/Boe)

$

50.22

$

50.87

$

79.90

$

50.55

$

72.99

  Operating Costs and Expenses per Boe: Lease operating expense

$

36.54

$

32.84

$

23.71

$

34.67

$

23.88

Production and ad valorem taxes

$

3.71

$

3.82

$

5.79

$

3.77

$

5.28

Depreciation, depletion, amortization and accretion

$

5.75

$

5.16

$

4.03

$

5.45

$

4.03

General & administrative expense: General & administrative expense

$

9.75

$

15.23

$

14.23

$

12.52

$

12.61

Stock-based compensation

$

6.08

$

4.78

$

2.48

$

5.42

$

2.23

Total general & administrative expense

$

15.83

$

20.01

$

16.71

$

17.94

$

14.85

EMPIRE PETROLEUM CORPORATION Condensed Consolidated Balance Sheets (Unaudited)   June 30, December 31,

2023

2022

  ASSETS Current Assets: Cash

$

1,294,850

 

$

11,944,442

 

Accounts Receivable

 

7,693,297

 

7,780,239

 

Derivative Instruments

 

26,511

 

 

121,584

 

Inventory - Oil in Tanks

 

1,538,429

 

1,840,274

 

Prepaids

 

1,464,599

 

 

1,048,434

 

Total Current Assets

 

12,017,686

 

 

22,734,973

 

  Property and Equipment: Oil and Natural Gas Properties, Successful Efforts

 

69,985,772

 

 

63,986,339

 

Less: Accumulated Depreciation, Depletion and Impairment

 

(21,336,969

)

 

(20,116,696

)

Total Oil and Gas Properties, Net

 

48,648,803

 

 

43,869,643

 

Other Property and Equipment, Net

 

1,526,558

 

 

1,441,529

 

Total Property and Equipment, Net

 

50,175,361

 

 

45,311,172

 

  Sinking Fund

 

-

 

 

2,779,000

 

Utility and Other Deposits

 

746,886

 

 

719,930

 

  TOTAL ASSETS

$

62,939,933

 

$

71,545,075

 

  LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable

$

4,158,650

 

$

5,843,366

 

Accrued Expenses

 

5,815,927

 

 

9,461,010

 

Current Portion of Lease Liability

 

310,422

 

 

256,975

 

Current Portion of Long-Term Debt

 

2,315,816

 

 

2,059,309

 

Total Current Liabilities

 

12,600,815

 

 

17,620,660

 

  Long-Term Debt

 

2,994,500

 

 

4,063,115

 

Long-Term Note Payable - PIE

 

1,060,004

 

 

1,076,987

 

Long Term Lease Liability

 

513,853

 

 

547,692

 

Asset Retirement Obligations

 

27,455,066

 

 

25,000,740

 

Total Liabilities

 

44,624,238

 

 

48,309,194

 

  Stockholders' Equity: Series A Preferred Stock - $.001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively

 

-

 

 

-

 

Common Stock - $.001 Par Value, 190,000,000 Shares Authorized, 22,124,592 and 22,093,503 Shares Issued and Outstanding, Respectively

 

81,646

 

 

81,615

 

Additional Paid-in Capital

 

75,307,762

 

 

75,303,479

 

Accumulated Deficit

 

(57,073,713

)

 

(52,149,213

)

Total Stockholders' Equity

 

18,315,695

 

 

23,235,881

 

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

62,939,933

 

$

71,545,075

 

EMPIRE PETROLEUM CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited)   Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,

2023

2023

2022

2023

2022

  Cash Flows From Operating Activities: Net Income (Loss)

$

(2,464,909

)

$

(2,459,591

)

$

5,534,280

 

$

(4,924,500

)

$

9,157,707

 

  Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities: Stock Compensation

 

1,180,806

 

 

949,639

 

 

486,903

 

 

2,130,445

 

 

863,187

 

Amortization of Right of Use Assets

 

87,560

 

 

76,225

 

 

50,901

 

 

163,785

 

 

90,607

 

Depreciation, Depletion and Amortization

 

711,042

 

 

622,489

 

 

455,799

 

 

1,333,531

 

 

890,245

 

Accretion of Asset Retirement Obligation

 

405,361

 

 

401,275

 

 

336,488

 

 

806,636

 

 

666,488

 

(Gain) Loss on Derivatives

 

66,657

 

 

66,823

 

 

23,893

 

 

133,480

 

 

136,214

 

Settlement on or Purchases of Derivative Instruments

 

-

 

 

(41,187

)

 

(77,631

)

 

(41,187

)

 

(160,891

)

Change in Operating Assets and Liabilities: Accounts Receivable

 

(1,189,280

)

 

(849,909

)

 

(355,618

)

 

(2,039,189

)

 

(1,113,084

)

Inventory, Oil in Tanks

 

155,057

 

 

(420,859

)

 

(216,911

)

 

(265,802

)

 

(154,709

)

Prepaids, Current

 

618,737

 

 

89,812

 

 

2,586

 

 

708,549

 

 

139,596

 

Other Long Term Assets and Liabilities

 

(436,523

)

 

(213,611

)

 

(156,211

)

 

(650,134

)

 

(156,211

)

Accounts Payable

 

(1,587,886

)

 

(110,053

)

 

649,861

 

 

(1,697,939

)

 

(1,004,576

)

Accrued Expenses

 

(464,538

)

 

(3,177,767

)

 

1,249,044

 

 

(3,642,305

)

 

1,689,515

 

Net Cash Provided By Operating Activities

 

(2,917,916

)

 

(5,066,714

)

 

7,983,384

 

 

(7,984,630

)

 

11,044,088

 

  Cash Flows from Investing Activities: Acquisition of Oil and Natural Gas Properties

 

-

 

 

-

 

 

(2,205,000

)

 

-

 

 

(2,205,000

)

Deposit for Acquisition of Oil ad Natural Gas Properties

 

(670,000

)

 

-

 

 

(670,000

)

 

-

 

Additions to Oil and Natural Gas Properties

 

(917,843

)

 

(2,210,004

)

 

(802,225

)

 

(3,127,847

)

 

(1,226,876

)

Purchase of Other Fixed Assets

 

(125,866

)

 

(27,170

)

 

(109,578

)

 

(153,036

)

 

(118,608

)

Cash Paid for Right of Use Assets

 

(117,560

)

 

(86,545

)

 

(48,402

)

 

(204,105

)

 

(91,235

)

Sinking Fund Deposit

 

-

 

 

2,779,000

 

 

(160,000

)

 

2,779,000

 

 

(640,000

)

Net Cash Used In Investing Activities

 

(1,831,269

)

 

455,281

 

 

(3,325,205

)

 

(1,375,988

)

 

(4,281,719

)

  Cash Flows from Financing Activities: Principal Payments of Debt

 

(719,838

)

 

(569,136

)

 

(462,436

)

 

(1,288,974

)

 

(922,388

)

Proceeds from Option and Warrant Exercise

 

-

 

 

-

 

 

2,887,183

 

 

-

 

 

2,984,683

 

Net Cash Provided By (Used In) Financing Activities

 

(719,838

)

 

(569,136

)

 

2,424,747

 

 

(1,288,974

)

 

2,062,295

 

  Net Change in Cash

 

(5,469,023

)

 

(5,180,569

)

 

7,082,926

 

 

(10,649,592

)

 

8,824,664

 

  Cash - Beginning of Period

 

6,763,873

 

 

11,944,442

 

 

5,353,609

 

 

11,944,442

 

 

3,611,871

 

  Cash - End of Period

$

1,294,850

 

$

6,763,873

 

$

12,436,535

 

$

1,294,850

 

$

12,436,535

 

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 Income (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 Income (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.

ADJUSTED NET INCOME     Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,

2023

 

2023

 

2022

 

2023

 

2022

  Net Income (Loss)

$

(2,464,909

)

$

(2,459,591

)

$

5,534,280

 

$

(4,924,500

)

$

9,157,707

 

  Adjusted for: (Gain) loss on derivatives

 

66,657

 

 

66,823

 

 

23,893

 

 

133,480

 

 

136,214

 

Settlement on or purchases of derivative instruments

 

-

 

 

(41,187

)

 

(77,631

)

 

(41,187

)

 

(160,891

)

Stock-based compensation expense related to CEO separation

 

-

 

 

201,453

 

 

-

 

 

201,453

 

 

-

 

CEO severance (including employer taxes)

 

-

 

 

374,820

 

 

-

 

 

374,820

 

 

-

 

Settlement and fees related to Texas sales tax audit

 

-

 

 

-

 

 

439,318

 

 

-

 

 

1,089,318

 

  Adjusted Net Income (Loss)

$

(2,398,252

)

$

(1,857,682

)

$

5,919,860

 

$

(4,255,934

)

$

10,222,348

 

  Diluted Weighted Average Shares Outstanding

 

22,105,704

 

 

22,096,796

 

 

23,294,723

 

 

22,101,264

 

 

22,233,826

 

  Adjusted Net Income (Loss) Per Share

$

(0.11

)

$

(0.08

)

$

0.25

 

$

(0.19

)

$

0.46

 

The Company defines Adjusted EBITDA as net income (loss) plus net interest expense, depreciation, depletion and amortization (“DD&A”), accretion, amortization of right of use assets and other non-cash items. 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, 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.

EBITDA & ADJUSTED EBITDA     Three Months Ended Six Months Ended June 30, March 31, June 30, June 30,

2023

2023

2022

2023

2022

  Net Income (Loss)

$

(2,464,909

)

$

(2,459,591

)

$

5,534,280

 

$

(4,924,500

)

$

9,157,707

 

  Add Back: Interest expense

 

184,887

 

 

237,299

 

 

111,785

 

 

422,186

 

 

222,433

 

DD&A

 

711,042

 

 

622,489

 

 

455,799

 

 

1,333,531

 

 

890,245

 

Accretion

 

405,361

 

 

401,275

 

 

336,488

 

 

806,636

 

 

666,488

 

Amortization of right of use assets

 

87,560

 

 

76,225

 

 

50,901

 

 

163,785

 

 

90,607

 

EBITDA

$

(1,076,059

)

$

(1,122,303

)

$

6,489,253

 

$

(2,198,362

)

#

$

11,027,480

 

  Consideration of noncash items: Stock compensation and issuances

 

1,180,806

 

 

949,639

 

 

486,903

 

 

2,130,445

 

 

863,182

 

(Gain) loss on derivatives

 

66,657

 

 

66,823

 

 

23,893

 

 

133,480

 

 

136,214

 

Settlement on or purchases of derivative instruments

 

-

 

 

(41,187

)

 

(77,631

)

 

(41,187

)

 

(160,891

)

CEO severance (including employer taxes)

 

-

 

 

374,820

 

 

-

 

 

374,820

 

 

-

 

Settlement and fees related to Texas sales tax audit

 

-

 

 

-

 

 

439,318

 

 

-

 

 

1,089,318

 

  Adjusted EBITDA

$

171,404

 

$

227,792

 

$

7,361,736

 

$

399,196

 

$

12,955,303

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230814427101/en/

Empire Petroleum Corporation: Mike Morrisett, President & CEO 539-444-8002 info@empirepetrocorp.com

Investor Relations: Al Petrie Advisors Wes Harris, Partner 281-740-1334 wes@alpetrie.com