Empire Petroleum Corp (EP) SEC Filing 10-Q Quarterly Report for the period ending Thursday, June 30, 2022

Empire Petroleum Corp

CIK: 887396 Ticker: EP

Exhibit 99


Empire Petroleum Provides Business Update and Announces First Quarter 2022 Financial Results


Revenue from Oil and Gas Sales at $13.04 million and Net Income $3.6 million

Recent Acquisitions Add Immediate Accretive Cash Flow & Increased Scale with Minimal Incremental Overhead

TULSA, OK / May 17, 2022 / Empire Petroleum (NYSE American: EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, today announced the Company’s financial results for the first quarter of 2022, ended March 31, 2022.

Recent Highlights

First Quarter 2022 Financial Results

Revenue from oil, natural gas, and natural gas liquids sales was $13.1 million for the first quarter compared to $2.4 million in the 2021 comparable period.
Net income for the quarter was $3.623 million compared to a net loss of $997,180 for the first quarter of 2021. This growth is due to the Company’s transformative acquisition of the New Mexico assets in May 2021, successful execution of the Company’s mission to enhance the production of its existing wells, new production from four non-operated wells in North Dakota, and a favorable pricing environment.

First Quarter 2022 Production Accomplishments

Despite historically adverse weather conditions during Q1 in North Dakota, Montana, and New Mexico, Empire exceeded its internal production forecasts due to previous work performed on leases that led to increased volumes, even with fewer production days due to weather.
Average oil prices received for first quarter production realized $91.25/barrel compared to $51.56/barrel in the first quarter of 2021 and $74.66/barrel in the fourth quarter of 2021
Subsequent to quarter end, the Company completed the acquisition of:
oOperated and non-operated oil and natural gas assets in the Landa Madison and Landa West Madison Units in Bottineau County, North Dakota
oOperated and non-operated oil and natural gas assets in the Birdbear Area in Golden Valley and Billings County, North Dakota
oAdditional working interests in existing areas of operation in North Dakota, Montana and New Mexico.
oThese assets are expected to provide immediate accretive cash flow and increased scale with minimal incremental overhead.

Appointment of New Board Member

On April 30, 2022, Vice Admiral Andrew Lewis was appointed to the Company’s Board of Directors. He will serve on the Board’s Audit Committee.
Vice Admiral Lewis has had an illustrious 36-year military career in the United States Navy, serving as the Deputy Chief of Naval Operations for Operations, Plans and Strategy, vice director for Operations, and director of Fleet Training at Fleet Forces Command. Following his retirement in 2021, Lewis joined Business Executives for National Security as Senior Vice President of Policy and Projects.
“Empire Petroleum has built a strong foundation and platform for growth, I look forward to helping the Company achieve its goals,” said Vice Admiral Lewis.





Management Comments

Tommy Pritchard, Chief Executive Officer of Empire, commented, “Empire had a great first quarter, highlighted by our uplisting to the NYSE American, which caps off Empire’s transformation into a diversified, low-leverage, free cash flow conventional oil and gas operator. With prices high and production growing from acquisitions and our return-to-production well strategy, the outlook for the year is strong as we remain focused on organic growth while securing additional incremental long-life and low-decline reserves that generate strong cash flow.”

“We reported total revenue of over $13.0 million in the first quarter, 400% higher than last year, and driven by a nearly 300% increase in production. Net income reached $3.6 million, an increase of over 400% from the same period last year. Our most recent acquisitions are a good example of our strategy that is expected to provide immediate accretive cash flow and increased scale with minimal incremental overhead,” continued Mr. Pritchard.

Mike Morrisett, President of Empire, added, “We believe that our low total debt balance collateralized only by our North Dakota, Montana and Louisiana assets, combined with the $5.4 million of cash on our balance sheet and the cash flow that the Company is generating, puts us in a strong position to support organic growth and additional bolt-on acquisitions that meet our strict criteria. For the moment, we remain unhedged on the majority of our production, which is represented by our debt free assets in New Mexico.”

For Empire’s complete financial results for the three-month period ended March 31, 2022, see the Company’s Quarterly Form 10-Q filed with the Securities and Exchange Commission on May 16, 2022.

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 targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. More information about Empire can be found at



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, 2021, 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.


Contact Information



Tommy Pritchard, CEO

Mike Morrisett, President



Investor Relations:

Stephanie Prince

PCG Advisory

Ph: (646) 863-6341


-Tables Follow -





Income Statement


   Three Months Ended March 31, 
   2022   2021 
Oil Sales  $10,416,422   $2,058,479 
Gas Sales   985,423    376,549 
Natural Gas Liquids Sales   1,732,518     
Other   24,043    21,430 
Net Realized and Unrealized Loss on Derivatives   (112,321)   (357,915)
Total Revenue   13,046,085    2,098,543 
Costs and Expenses:          
Operating   5,190,946    1,418,010 
Taxes - Production   901,238    169,832 
Depletion, Depreciation & Amortization   434,446    180,540 
Accretion of Asset Retirement Obligation   330,000    284,465 
General and Administrative   2,455,380    906,048 
Total Cost and Expenses   9,312,010    2,958,895 
Operating Income (Loss)   3,734,075    (860,352)
Other Income and (Expense):          
Interest Expense   (110,648)   (136,828)
Net Income (Loss)  $3,623,427   $(997,180)
Net Income  (Loss) per Common Share:  $0.18   $(0.13)
Basic  $0.15   $(0.13)
Weighted Average Number of Common Shares Outstanding,          
Basic   19,866,687    7,954,771 
Diluted   24,018,453    7,954,771 





Balance Sheet

   March 31,   December 31, 
   2022   2021 
Current Assets:          
Cash  $5,353,609   $3,611,871 
Accounts Receivable   8,491,371    7,733,905 
Unrealized Gain on Derivative Instruments   77,907    55,242 
Inventory - Oil in Tanks   975,678    1,037,880 
Prepaids   542,112    679,122 
Total Current Assets   15,440,677    13,118,020 
Property and Equipment:          
Oil and Natural Gas Properties, Successful Efforts   47,338,977    46,914,326 
Less: Accumulated Depreciation, Depletion and Impairment   (17,926,748)   (17,525,918)
    29,412,229    29,388,408 
Other Property and Equipment, Net   1,224,319    1,288,611 
Total Property and Equipment, Net   30,636,548    30,677,019 
Unrealized Gain on Derivative Instruments - Long Term   142,292    194,018 
Sinking Fund   5,290,000    4,810,000 
Utility and Other Deposits   1,309,281    1,290,594 
Total Assets  $52,818,798   $50,089,651 
Current Liabilities:          
Accounts Payable  $2,675,098   $4,329,535 
Accrued Expenses   6,284,655    5,844,184 
Current Portion of Lease Liability   181,029    180,105 
Current Portion of Long-Term Notes Payable   1,553,369    1,700,663 
Total Current Liabilities   10,694,151    12,054,487 
Long-Term Notes Payable   6,620,130    6,914,101 
Long Term Lease Liability   602,554    646,311 
Asset Retirement Obligations   20,970,599    20,640,599 
Total Liabilities   38,887,434    40,255,498 
Stockholders' Equity:          
Series A Preferred Stock - $.001 Par Value, 10,000,000 Shares Authorized,          
6 and 0 Shares Issued and Outstanding, Respectively        
Common Stock - $.001 Par Value 190,000,000 Shares Authorized,          
 19,889,398 and 19,840,648 Shares Issued and Outstanding, Respectively   79,557    79,362 
Additional Paid-in Capital   69,461,723    68,988,134 
Accumulated Deficit   (55,609,916)   (59,233,343)
Total Stockholders' Equity   13,931,364    9,834,153 
Total Liabilities and Stockholders' Equity  $52,818,798   $50,089,651 





The following information was filed by Empire Petroleum Corp (EP) on Tuesday, May 17, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Condensed Consolidated Balance Sheets (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical)
Condensed Consolidated Statements Of Cash Flows (Unaudited)
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Deficit) (Unaudited)
Condensed Consolidated Statements Of Operations (Unaudited)
Acquisition Of Xto Properties
Acquisition Of Xto Properties (Details Narrative)
Acquisition Of Xto Properties (Tables)
Aggregate Capitalized Costs Of Oil And Natural Gas Properties As Of June 30, 2022 Are As Follows: (Details)
Asset Retirement Obligations
Asset Retirement Obligations (Tables)
Commitments And Contingencies
Commitments And Contingencies (Details Narrative)
Commodity Derivative Financial Instruments
Commodity Derivative Financial Instruments (Tables)
Common And Preferred Stock
Common And Preferred Stock (Details Narrative)
Debt (Details Narrative)
Debt (Tables)
Equity (Details Narrative)
Joint Development Agreement
Joint Development Agreement (Details Narrative)
Leases (Details Narrative)
Leases (Tables)
Maturities Of Lease Liabilities Are As Follows As Of June 30, 2022: (Details)
Organization And Basis Of Presentation
Other Property And Equipment Consists Of Operating Lease Assets, Vehicles, Office Furniture, And Equipment With Lives Ranging From Three To Five Years (Details)
Property (Details Narrative)
Property (Tables)
Related Party Transactions
Related Party Transactions (Details Narrative)
Stock-Based Compensation
Stock-Based Compensation (Details Narrative)
Subsequent Events
Subsequent Events (Details Narrative)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Policies)
Supplemental Balance Sheet Information Related To The Right Of Use Leases Is As Follows As Of June 30, 2022 (Details)
The Company???S Asset Retirement Obligation Activity Is As Follows For The Six Months Ended June 30, 2022 (Details)
The Following Represents The Company???S Net Cash Payments On Derivatives For The Three- And Six-Months Ended June 30, 2022 And 2021 (Details)
The Following Table Represents The Company???S Outstanding Debt As Of June 30, 2022 (Details)
The Following Table Sets Forth The Company???S Outstanding Derivative Contracts At June 30, 2022 (Details)
The Following Table Sets Forth The Company???S Preliminary Purchase Price Allocation (Details)
The Following Table Summarizes The Net Realized And Unrealized Losses Reported In Earnings Related To The Commodity Derivative Instruments For The Three- And Six-Months Ended June 30, 2022 And 2021 (Details)
Ticker: EP
CIK: 887396
Form Type: 10-Q Quarterly Report
Accession Number: 0001072613-22-000511
Submitted to the SEC: Mon Aug 15 2022 4:35:23 PM EST
Accepted by the SEC: Mon Aug 15 2022
Period: Thursday, June 30, 2022
Industry: Crude Petroleum And Natural Gas

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