Empire Petroleum Announces Results for Fourth Quarter and Full Year 2023
~ Starbuck Drilling Program in North Dakota Continuing to Provide Encouraging Results ~
KEY Q4 AND FULL YEAR HIGHLIGHTS
-
Produced fourth quarter 2023 net sales volumes of 2,011 barrels of oil equivalent per day (“Boe/d”) (64% oil, 16% natural gas liquids (“NGLs”) and 20% natural gas;
- Full year 2023 production was 2,099 Boe/d (64% oil, 18% NGLs, and 18% natural gas);
-
Posted a net loss
$4.8 million , or$0.20 per diluted share, for the fourth quarter 2023 and a net loss of$12.5 million , or$0.55 per diluted share, for full year 2023;-
Contributing to the results were higher expenses associated with an increase in LOE including workovers, DD&
A, and G &A to include the additional cost to build out the professional team to support current operations and future growth, and lower sequential year over year pricing;
-
Contributing to the results were higher expenses associated with an increase in LOE including workovers, DD&
-
Year-end 2023 proved reserves were 9.1 million barrels of oil equivalent (“MMBoe”), and the standardized measure of
SEC proved reserves discounted at 10% was$83.0 million ; The decrease in reserves year over year is primarily due to a decrease in theSEC mandated prices used to value oil, natural gas and NGL reserves; -
Initiated technical work for production uplift opportunities on Empire’s
New Mexico assets, including a pilot drilling program inNew Mexico that is expected to begin later in 2024; and -
Completed a
$20 million equity raise.
2024 OUTLOOK
-
North Dakota ,Williston Basin , Starbuck Field EOR development project: Six horizontal wells online, more under development in the Upper Charles formation and to be expanded in other development formations;- Currently, most of the horizontal laterals have been completed for the initial EOR development;
- The first stage of injectors and infrastructure are to be completed in Q2;
- The initial impact on production is anticipated in Q3 to Q4 and beyond;
- The core data collected is currently being evaluated on the key new zones of potential development;
- The completion of the 3-D seismic shoot and all 3-D processing anticipated in Q2; and
- Further data analysis will provide the direction for future development activities by Q3
-
New Mexico ,Permian Basin : Further evaluating flood performance optimization and new drill opportunities in the Company’s three prolific waterflood units inLea County, NM : EMSU, EMSU-B and AGU; -
Texas , FortTrinidad Field and Empire’s other acreage nearby: under technical and economic review are potentially several development opportunities, with the goal of commencing later this year; -
Reserves:
- Anticipate the Starbuck Field EOR development and other Company recompletions, workovers, and drilling to increase proved reserves during 2024; and
- Anticipate increasing reserve base lending and adding to Empire’s capacity to further develop its assets.
MANAGEMENT COMMENTARY
FINANCIAL AND OPERATIONAL RESULTS FOR FOURTH QUARTER 2023
|
|
Q4 2023 |
|
Q3 2023 |
|
%
|
|
Q4 2022 |
|
%
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (Boe/d) |
|
|
|
2,011 |
|
|
2,048 |
|
|
(2 |
%) |
|
2,149 |
|
|
(6 |
%) |
|
Net sales (Boe) |
|
|
|
185,009 |
|
|
188,396 |
|
|
(2 |
%) |
|
197,712 |
|
|
(6 |
%) |
|
Realized price ($/Boe) |
|
|
$ |
53.50 |
$ |
54.75 |
|
|
(2 |
%) |
$ |
55.59 |
|
|
(4 |
%) |
||
Product Revenue ($M) |
|
|
$ |
9,898 |
|
$ |
10,315 |
|
|
(4 |
%) |
$ |
10,991 |
|
(10 |
%) |
||
Net income (loss) ($M) |
|
|
$ |
(4,797) |
|
$ |
(2,748) |
|
|
(75 |
%) |
$ |
(2,290) |
|
|
(109 |
%) |
|
Adjusted net income (loss) ($M)1 |
|
|
$ |
(5,753) |
|
$ |
(1,462) |
|
|
NM |
|
$ |
(894) |
|
|
NM |
|
|
Adjusted EBITDA ($M)1 |
|
|
$ |
(2,917) |
|
$ |
134 |
|
|
NM |
|
$ |
1,308 |
|
|
NM |
|
Net sales for the fourth quarter of 2023 were 2,011 Boe/d, including 1,294 barrels of oil per day; 326 barrels of NGLs per day, and 2,346 thousand cubic feet per day (“Mcf/d”), or 391 Boe/d, of natural gas.
Empire reported
__________________________ |
1Adjusted 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. |
2NM: A percentage calculation is not meaningful due to change in signs, a zero-value denominator or a percent age change greater than 200. |
Lease operating expenses for the fourth quarter of 2023 were
Production and ad valorem taxes for the fourth quarter of 2023 remained steady at
General and administrative expenses, excluding share-based compensation expense, was
Interest expense for the fourth quarter of 2023 was
Empire recorded a net loss- for the fourth quarter of
The Company posted an adjusted net loss for the fourth quarter of 2023 of
Adjusted EBITDA was a loss of
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For the three months and twelve months ended
As of
FINANCIAL AND OPERATIONAL RESULTS FOR FULL YEAR 2023
|
|
FY 2023 |
|
|
FY 2022 |
|
|
% Change
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (Boe/d) |
|
|
|
2,099 |
|
|
|
2,163 |
|
|
|
(3) |
% |
Net sales (Boe) |
|
|
|
766,261 |
|
|
|
789,567 |
|
|
|
(3) |
% |
Realized price ($/Boe) |
|
|
$ |
52.29 |
|
|
$ |
67.34 |
|
|
|
(22) |
% |
Product Revenue ($M) |
|
|
$ |
40,072 |
|
|
$ |
53,172 |
|
|
|
(25) |
% |
Net income (loss) ($M) |
|
|
$ |
(12,470) |
|
|
$ |
7,084 |
|
|
|
NM |
|
Adjusted net income (loss) ($M)1 |
|
|
$ |
(11,673) |
|
|
$ |
12,265 |
|
|
|
NM |
|
Adjusted EBITDA ($M)1 |
|
|
$ |
(2,384) |
|
|
$ |
19,062 |
|
|
|
NM |
|
1Adjusted 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. |
|||||||||||||
2NM: A percentage calculation is not meaningful due to change in signs, a zero-value denominator or a percentage change greater than 200. |
Net sales for the full year of 2023 were 2,099 Boe/d, including 1,337 barrels of oil per day; 373 barrels of NGLs per day; and 2,340 Mcf/d, or 390 Boe/d, of natural gas.
Total revenues for 2023 decreased compared to the prior year primarily due to lower realized oil, natural gas and NGL prices and lower NGL volumes, partially offset by higher oil volumes in
Lease operating expense includes approximately
Production taxes were lower for 2023 compared to 2022 because of the lower product revenues discussed above.
General and administrative expenses, excluding share-based compensation, was
Interest expense for full year 2023 was
Empire posted a net loss for full year 2023 of
YEAR-END 2023 PROVED RESERVES
The Company’s year-end 2023
Year-end 2023
|
Oil (MBbls) |
Gas (MMcf) |
NGL (MBbls) |
MBOE |
Balance, |
8,448 |
11,208 |
87 |
10,404 |
Acquisition of Reserves |
650 |
205 |
61 |
745 |
Revisions |
(350) |
1,834 |
2,248 |
2,203 |
Extensions |
561 |
566 |
27 |
682 |
Production |
(483) |
(876) |
(161) |
(790) |
Balance, |
8,826 |
12,937 |
2,262 |
13,244 |
Acquisition of Reserves (a) |
36 |
19 |
5 |
44 |
Revisions (b) |
(1,625) |
(5,998) |
(960) |
(3,585) |
Extensions |
175 |
- |
- |
175 |
Production |
(488) |
(854) |
(136) |
(766) |
Balance, |
6,924 |
6,104 |
1,171 |
9,112 |
(a) |
2023 acquisitions primarily relate to additional working interests in certain of the Company’s |
(b) |
The revisions in 2023 are primarily related to decreases in prices. |
The standardized measure of the Company’s reported
|
2023 |
2022 |
||
Future cash inflows |
$ |
543,067,776 |
941,172,544 |
|
Future production costs |
|
(350,439,800) |
(509,154,924) |
|
Future development costs |
|
(42,475,160) |
(55,901,780) |
|
Future income tax expense |
|
(25,201,886) |
(90,724,632) |
|
Future net cash flows |
|
124,950,930 |
285,391,208 |
|
10% annual discount for estimated timing of cash flows |
|
(41,954,370) |
(137,723,795) |
|
Standardized measure |
$ |
83,016,560 |
147,667,413 |
The 12-month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the properties' reserves. The prices for the properties' reserves were as follows:
|
2023 |
2022 |
|||
Oil (BBl) |
$ |
75.65 |
$ |
91.14 |
|
Natural gas (MMBtu) |
$ |
1.51 |
$ |
4.23 |
|
NGLs (BBL) |
$ |
9.82 |
$ |
36.29 |
Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum are as follows as of
|
|
|
2023 |
|
2022 |
|
Beginning of year |
|
$ |
147,667,413 |
|
93,852,093 |
|
Net change in prices and production costs |
|
|
(71,619,375) |
|
24,651,555 |
|
Net change in future development costs |
|
|
3,314,220 |
|
(7,141,431) |
|
Oil and gas net revenue |
|
|
(6,256,366) |
|
(21,418,327) |
|
Extensions |
|
|
4,684,473 |
|
11,037,719 |
|
Acquisition of reserves |
|
|
526,848 |
|
12,043,912 |
|
Revisions of previous quantity estimates |
|
|
(55,329,684) |
|
46,871,217 |
|
Net change in taxes |
|
|
33,317,731 |
|
(32,133,473) |
|
Accretion of discount |
|
|
19,542,907 |
|
10,939,619 |
|
Changes in timing and other |
|
|
7,168,393 |
|
8,964,529 |
|
End of year |
|
$ |
83,016,560 |
|
147,667,413 |
|
ABOUT
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
|
||||||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
|
|
|
|
|||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Revenue: | ||||||||||||||||||||
Oil Sales |
$ |
9,106,041 |
|
$ |
9,492,127 |
|
$ |
9,731,245 |
|
$ |
36,684,494 |
|
$ |
44,978,554 |
|
|||||
Gas Sales |
|
410,816 |
|
|
411,217 |
|
|
802,425 |
|
|
1,726,754 |
|
|
4,534,370 |
|
|||||
Natural Gas Liquids ("NGLs") Sales |
|
381,497 |
|
|
411,624 |
|
|
457,504 |
|
|
1,660,256 |
|
|
3,659,451 |
|
|||||
Total Product Revenues |
|
9,898,354 |
|
|
10,314,968 |
|
|
10,991,174 |
|
|
40,071,504 |
|
|
53,172,375 |
|
|||||
Other |
|
15,705 |
|
|
17,050 |
|
|
30,552 |
|
|
70,480 |
|
|
102,429 |
|
|||||
Gain (Loss) on Derivatives |
|
1,253,708 |
|
|
(1,185,921 |
) |
|
(294,190 |
) |
|
(65,693 |
) |
|
(387,930 |
) |
|||||
Total Revenue |
|
11,167,767 |
|
|
9,146,097 |
|
|
10,727,536 |
|
|
40,076,291 |
|
|
52,886,874 |
|
|||||
Costs and Expenses: | ||||||||||||||||||||
Lease Operating Expense |
|
7,956,264 |
|
|
7,050,054 |
|
|
6,602,984 |
|
|
28,625,481 |
|
|
23,584,039 |
|
|||||
Production and Ad Valorem Taxes |
|
772,781 |
|
|
792,241 |
|
|
792,141 |
|
|
3,044,411 |
|
|
3,943,466 |
|
|||||
Depletion, Depreciation & Amortization |
|
1,035,059 |
|
|
727,943 |
|
|
519,403 |
|
|
3,096,533 |
|
|
1,949,191 |
|
|||||
Accretion of Asset Retirement Obligation |
|
478,881 |
|
|
470,505 |
|
|
348,799 |
|
|
1,756,022 |
|
|
1,357,906 |
|
|||||
Impairment |
|
- |
|
|
- |
|
|
936,620 |
|
|
- |
|
|
936,620 |
|
|||||
General and Administrative Expense: | ||||||||||||||||||||
General and Administrative |
|
4,536,237 |
|
|
2,580,464 |
|
|
2,699,880 |
|
|
12,034,184 |
|
|
9,614,948 |
|
|||||
Stock-Based Compensation |
|
855,514 |
|
|
158,792 |
|
|
1,043,718 |
|
|
3,144,751 |
|
|
2,716,541 |
|
|||||
Total General and Administrative Expense |
|
5,391,751 |
|
|
2,739,256 |
|
|
3,743,598 |
|
|
15,178,935 |
|
|
12,331,489 |
|
|||||
Total Cost and Expenses |
|
15,634,736 |
|
|
11,779,999 |
|
|
12,943,545 |
|
|
51,701,382 |
|
|
44,102,711 |
|
|||||
Operating Income (Loss) |
|
(4,466,969 |
) |
|
(2,633,902 |
) |
|
(2,216,009 |
) |
|
(11,625,091 |
) |
|
8,784,162 |
|
|||||
Other Income and (Expense): | ||||||||||||||||||||
Interest Expense |
|
(328,445 |
) |
|
(249,796 |
) |
|
(161,777 |
) |
|
(1,000,427 |
) |
|
(509,540 |
) |
|||||
Other Income (Expense) |
|
465 |
|
|
1,350 |
|
|
297,165 |
|
|
23,721 |
|
|
(981,595 |
) |
|||||
Income (Loss) before Taxes |
|
(4,794,949 |
) |
|
(2,882,348 |
) |
|
(2,080,621 |
) |
|
(12,601,797 |
) |
|
7,293,027 |
|
|||||
Income Tax (Provision) Benefit |
|
(2,528 |
) |
|
134,720 |
|
|
(208,898 |
) |
|
132,192 |
|
|
(208,898 |
) |
|||||
Net Income (Loss) |
$ |
(4,797,477 |
) |
$ |
(2,747,628 |
) |
$ |
(2,289,519 |
) |
$ |
(12,469,605 |
) |
$ |
7,084,129 |
|
|||||
Net Income (Loss) per Common Share: | ||||||||||||||||||||
Basic |
$ |
(0.20 |
) |
$ |
(0.12 |
) |
$ |
(0.10 |
) |
$ |
(0.55 |
) |
$ |
0.34 |
|
|||||
Diluted |
$ |
(0.20 |
) |
$ |
(0.12 |
) |
$ |
(0.10 |
) |
$ |
(0.55 |
) |
$ |
0.30 |
|
|||||
Weighted Average Number of Common Shares Outstanding: | ||||||||||||||||||||
Basic |
|
23,912,271 |
|
|
22,727,639 |
|
|
22,037,872 |
|
|
22,718,890 |
|
|
21,003,563 |
|
|||||
Diluted |
|
23,912,271 |
|
|
22,727,639 |
|
|
22,037,872 |
|
|
22,718,890 |
|
|
23,387,646 |
|
|
|||||||||||||||
Condensed Operating Data | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
|
Year Ended |
|||||||||||||
|
|
|
|
|
|
|
|||||||||
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Net Sales Volumes: | |||||||||||||||
Oil (Bbl) |
|
119,022 |
|
120,177 |
|
121,592 |
|
487,869 |
|
482,818 |
|||||
Natural gas (Mcf) |
|
215,855 |
|
195,908 |
|
221,818 |
|
854,274 |
|
875,647 |
|||||
Natural gas liquids (Bbl) |
|
30,011 |
|
35,568 |
|
39,150 |
|
136,013 |
|
160,809 |
|||||
Total (Boe) |
|
185,009 |
|
188,396 |
|
197,712 |
|
766,261 |
|
789,567 |
|||||
Average daily equivalent sales (Boe/d) |
|
2,011 |
|
2,048 |
|
2,149 |
|
2,099 |
|
2,163 |
|||||
Average Price per Unit: | |||||||||||||||
Oil ($/Bbl) |
$ |
76.51 |
$ |
78.98 |
$ |
80.03 |
$ |
75.19 |
$ |
93.16 |
|||||
Natural gas ($/Mcf) |
$ |
1.90 |
$ |
2.10 |
$ |
3.62 |
$ |
2.02 |
$ |
5.18 |
|||||
Natural gas liquids ($/Bbl) |
$ |
12.71 |
$ |
11.57 |
$ |
11.69 |
$ |
12.21 |
$ |
22.76 |
|||||
Total ($/Boe) |
$ |
53.50 |
$ |
54.75 |
$ |
55.59 |
$ |
52.29 |
$ |
67.34 |
|||||
Operating Costs and Expenses per Boe: | |||||||||||||||
Lease operating expense |
$ |
43.00 |
$ |
37.42 |
$ |
33.40 |
$ |
37.36 |
$ |
29.87 |
|||||
Production and ad valorem taxes |
$ |
4.18 |
$ |
4.21 |
$ |
4.01 |
$ |
3.97 |
$ |
4.99 |
|||||
Depreciation, depletion, amortization and accretion |
$ |
8.18 |
$ |
6.36 |
$ |
4.39 |
$ |
6.33 |
$ |
4.19 |
|||||
General & administrative expense: | |||||||||||||||
General & administrative expense |
$ |
24.52 |
$ |
13.70 |
$ |
13.65 |
$ |
15.71 |
$ |
12.18 |
|||||
Stock-based compensation |
$ |
4.62 |
$ |
0.84 |
$ |
5.28 |
$ |
4.10 |
$ |
3.44 |
|||||
Total general & administrative expense |
$ |
29.14 |
$ |
14.54 |
$ |
18.93 |
$ |
19.81 |
$ |
15.62 |
|||||
|
||||||||
Condensed Consolidated Balance Sheets | ||||||||
|
|
|
||||||
2023 |
|
2022 |
||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash |
$ |
7,792,508 |
|
$ |
11,944,442 |
|
||
Accounts Receivable |
|
8,354,636 |
|
|
7,780,239 |
|
||
Derivative Instruments |
|
406,806 |
|
|
121,584 |
|
||
Inventory |
|
1,433,454 |
|
|
1,840,274 |
|
||
Prepaids |
|
757,500 |
|
|
1,048,434 |
|||
Total Current Assets |
|
18,744,904 |
|
|
22,734,973 |
|
||
Property and Equipment: | ||||||||
|
|
93,509,803 |
|
|
63,986,339 |
|
||
Less: Accumulated Depreciation, Depletion and Impairment |
|
(22,996,805 |
) |
|
(20,116,696 |
) |
||
|
|
70,512,998 |
|
|
43,869,643 |
|
||
Other Property and Equipment, Net |
|
1,883,211 |
|
|
1,441,529 |
|
||
Total Property and Equipment, Net |
|
72,396,209 |
|
|
45,311,172 |
|
||
Sinking Fund |
|
- |
|
|
2,779,000 |
|
||
Other Noncurrent Assets |
|
1,474,503 |
|
|
719,930 |
|
||
TOTAL ASSETS |
$ |
92,615,616 |
|
$ |
71,545,075 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts Payable |
$ |
16,437,219 |
|
$ |
5,843,366 |
|
||
Accrued Expenses |
|
7,075,302 |
|
|
9,461,010 |
|
||
Current Portion of Lease Liability |
|
432,822 |
|
|
256,975 |
|
||
Current Portion of Note Payable - |
|
1,060,004 |
|
|
- |
|
||
Current Portion of Long-Term Debt |
|
44,225 |
|
|
2,059,309 |
|||
Total Current Liabilities |
|
25,049,572 |
|
|
17,620,660 |
|
||
Long-Term Debt |
|
4,596,775 |
|
|
4,063,115 |
|
||
Term Note Payable - |
|
- |
|
|
1,076,987 |
|
||
Long-Term Lease Liability |
|
544,382 |
|
|
547,692 |
|
||
Asset Retirement Obligations |
|
27,468,427 |
|
|
25,000,740 |
|
||
Total Liabilities |
|
57,659,156 |
|
|
48,309,194 |
|
||
Stockholders' Equity: | ||||||||
Series A Preferred Stock - |
|
- |
|
|
- |
|
||
Common Stock - |
|
85,025 |
|
|
81,615 |
|
||
|
|
99,490,253 |
|
|
75,303,479 |
|
||
Accumulated Deficit |
|
(64,618,818 |
) |
|
(52,149,213 |
) |
||
Total Stockholders' Equity |
|
34,956,460 |
|
|
23,235,881 |
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
92,615,616 |
|
$ |
71,545,075 |
|
|
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
|
|
|
|
|
||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||||||
Net Income (Loss) |
$ |
(4,797,477 |
) |
$ |
(2,747,628 |
) |
$ |
(2,289,519 |
) |
$ |
(12,469,605 |
) |
$ |
7,084,129 |
|
|||||
Adjustments to Reconcile Net Income (Loss) to |
||||||||||||||||||||
Provided By Operating Activities: | ||||||||||||||||||||
Stock Compensation and Issuances |
|
855,513 |
|
|
158,792 |
|
|
1,043,929 |
|
|
3,144,750 |
|
|
2,716,752 |
|
|||||
Amortization of Right of Use Assets |
|
135,733 |
|
|
124,171 |
|
|
128,613 |
|
|
423,689 |
|
|
263,847 |
|
|||||
Depreciation, Depletion and Amortization |
|
1,035,059 |
|
|
727,943 |
|
|
519,403 |
|
|
3,096,533 |
|
|
1,949,191 |
|
|||||
Accretion of Asset Retirement Obligation |
|
478,881 |
|
|
470,505 |
|
|
348,799 |
|
|
1,756,022 |
|
|
1,357,906 |
|
|||||
(Gain) Loss on Derivatives |
|
(1,253,708 |
) |
|
1,185,921 |
|
|
294,190 |
|
|
65,693 |
|
|
387,930 |
|
|||||
Settlement on or Purchases of Derivative Instruments |
|
(266,653 |
) |
|
(45,855 |
) |
|
(15,461 |
) |
|
(353,695 |
) |
|
(260,266 |
) |
|||||
Impairment |
|
- |
|
|
- |
|
|
936,620 |
|
|
- |
|
|
936,620 |
|
|||||
Loss on XTO Final Settlement |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,448,363 |
|
|||||
PIE-Related Expense |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,399,030 |
|
|||||
Change in Operating Assets and Liabilities: | ||||||||||||||||||||
Accounts Receivable |
|
(1,128,490 |
) |
|
467,151 |
|
|
(2,116,239 |
) |
|
(2,700,528 |
) |
|
(1,812,230 |
) |
|||||
Inventory, Oil in Tanks |
|
131,230 |
|
|
(26,255 |
) |
|
(234,917 |
) |
|
(160,827 |
) |
|
(802,394 |
) |
|||||
Prepaids, Current |
|
(165,768 |
) |
|
202,867 |
|
|
(323,950 |
) |
|
745,648 |
|
|
(369,312 |
) |
|||||
Accounts Payable |
|
556,917 |
|
|
1,892,377 |
|
|
2,991,255 |
|
|
751,355 |
|
|
526,682 |
|
|||||
Accrued Expenses |
|
649,185 |
|
|
(89,808 |
) |
|
2,136,000 |
|
|
(3,082,928 |
) |
|
3,616,826 |
|
|||||
Other Long Term Assets and Liabilities |
|
(160,691 |
) |
|
(292,782 |
) |
|
(270,107 |
) |
|
(1,103,607 |
) |
|
(387,292 |
) |
|||||
Net Cash Provided By Operating Activities |
|
(3,930,269 |
) |
|
2,027,399 |
|
|
3,148,616 |
|
|
(9,887,500 |
) |
|
18,055,782 |
|
|||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Acquisition of |
|
- |
|
|
(1,424,419 |
) |
|
(497,613 |
) |
|
(2,094,419 |
) |
|
(2,702,613 |
) |
|||||
Additions to |
|
(8,950,338 |
) |
|
(2,468,688 |
) |
|
(8,658,811 |
) |
|
(14,546,873 |
) |
|
(10,161,711 |
) |
|||||
Purchase of Other Fixed Assets |
|
(173,337 |
) |
|
(26,478 |
) |
|
(3,442 |
) |
|
(352,851 |
) |
|
(311,229 |
) |
|||||
Cash Paid for Right of Use Assets |
|
(124,485 |
) |
|
(223,606 |
) |
|
(133,690 |
) |
|
(552,196 |
) |
|
(268,934 |
) |
|||||
Sinking Fund Deposit |
|
- |
|
|
- |
|
|
2,671,000 |
|
|
2,779,000 |
|
|
2,031,000 |
|
|||||
|
|
(9,248,160 |
) |
|
(4,143,191 |
) |
|
(6,622,556 |
) |
|
(14,767,339 |
) |
|
(11,413,487 |
) |
|||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Proceeds from Debt Issued |
|
4,492,484 |
|
|
10,000,000 |
|
|
- |
|
|
14,492,484 |
|
|
- |
|
|||||
Principal Payments of Debt |
|
(4,517,576 |
) |
|
(644,224 |
) |
|
(315,673 |
) |
|
(6,450,774 |
) |
|
(1,699,840 |
) |
|||||
Proceeds from Option and Warrant Exercises |
|
9,961,195 |
|
|
2,500,000 |
|
|
212 |
|
|
12,461,195 |
|
|
3,390,115 |
|
|||||
Net Cash Provided By (Used In) Financing Activities |
|
9,936,103 |
|
|
11,855,776 |
|
|
(315,461 |
) |
|
20,502,905 |
|
|
1,690,275 |
|
|||||
Net Change in Cash |
|
(3,242,326 |
) |
|
9,739,984 |
|
|
(3,789,401 |
) |
|
(4,151,934 |
) |
|
8,332,570 |
|
|||||
Cash - Beginning of Period |
|
11,034,834 |
|
|
1,294,850 |
|
|
15,733,843 |
|
|
11,944,442 |
|
|
3,611,871 |
|
|||||
Cash - End of Period |
$ |
7,792,508 |
|
$ |
11,034,834 |
|
$ |
11,944,442 |
|
$ |
7,792,508 |
|
$ |
11,944,441 |
|
|||||
Supplemental Cash Flow Information: | ||||||||||||||||||||
Cash Paid for Interest |
$ |
650,637 |
|
$ |
473,205 |
|
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
Three Months Ended | Year Ended | |||||||||||||||||||
|
|
|
|
|
||||||||||||||||
2023 |
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
Net Income (Loss) |
$ |
(4,797,477 |
) |
$ |
(2,747,628 |
) |
$ |
(2,289,519 |
) |
$ |
(12,469,605 |
) |
$ |
7,084,129 |
|
|||||
Adjusted for: | ||||||||||||||||||||
(Gain) loss on derivatives |
|
(1,253,708 |
) |
|
1,185,921 |
|
|
294,190 |
|
|
65,693 |
|
|
387,930 |
|
|||||
Settlement on or purchases of derivative instruments |
|
(266,653 |
) |
|
(45,855 |
) |
|
(15,449 |
) |
|
(353,695 |
) |
|
(260,266 |
) |
|||||
CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
|
- |
|
|||||
COO severance (including employer taxes) |
|
- |
|
|
145,319 |
|
|
- |
|
|
145,319 |
|
|
- |
|
|||||
Write-off of JDA note receivable |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,399,030 |
|
|||||
XTO final settlement |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,448,363 |
|
|||||
Impairment |
|
- |
|
|
- |
|
|
936,620 |
|
|
- |
|
|
936,620 |
|
|||||
Settlement and fees related to |
|
- |
|
|
- |
|
|
180,040 |
|
|
- |
|
|
1,269,358 |
|
|||||
Professional fees for potential financing transactions |
|
564,588 |
|
|
- |
|
|
- |
|
|
564,588 |
|
|
- |
|
|||||
Adjusted Net Income (Loss) |
$ |
(5,753,250 |
) |
$ |
(1,462,243 |
) |
$ |
(894,118 |
) |
$ |
(11,672,880 |
) |
$ |
12,265,164 |
|
|||||
Diluted Weighted Average Shares Outstanding |
|
23,912,271 |
|
|
22,727,639 |
|
|
22,037,872 |
|
|
22,718,890 |
|
|
23,387,646 |
|
|||||
Adjusted Net Income (Loss) Per Share |
$ |
(0.24 |
) |
$ |
(0.06 |
) |
$ |
(0.04 |
) |
$ |
(0.51 |
) |
$ |
0.52 |
|
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 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.
Three Months Ended | Year Ended | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Net Income (Loss) |
$ |
(4,797,477 |
) |
$ |
(2,747,628 |
) |
$ |
(2,289,519 |
) |
$ |
(12,469,605 |
) |
$ |
7,084,128 |
|
||||
Add Back: | |||||||||||||||||||
Interest expense |
|
328,445 |
|
|
249,796 |
|
|
161,777 |
|
|
1,000,427 |
|
|
509,540 |
|
||||
DD&A |
|
1,035,059 |
|
|
727,943 |
|
|
519,403 |
|
|
3,096,533 |
|
|
1,949,191 |
|
||||
Accretion |
|
478,881 |
|
|
470,505 |
|
|
348,799 |
|
|
1,756,022 |
|
|
1,357,906 |
|
||||
Impairment |
|
- |
|
|
- |
|
|
936,620 |
|
|
- |
|
|
936,620 |
|
||||
Amortization of right of use assets |
|
135,733 |
|
|
124,171 |
|
|
128,613 |
|
|
423,689 |
|
|
263,847 |
|
||||
Income taxes |
|
2,528 |
|
|
(134,720 |
) |
|
- |
|
|
(132,192 |
) |
|
- |
|
||||
EBITDA |
$ |
(2,816,831 |
) |
$ |
(1,309,933 |
) |
$ |
(194,307 |
) |
$ |
(6,325,126 |
) |
$ |
12,101,232 |
|
||||
Adjustments: | |||||||||||||||||||
Stock based Compensation |
|
855,514 |
|
|
158,792 |
|
|
1,043,929 |
|
|
3,144,751 |
|
|
2,716,758 |
|
||||
(Gain) loss on derivatives |
|
(1,253,708 |
) |
|
1,185,921 |
|
|
294,190 |
|
|
65,693 |
|
|
387,930 |
|
||||
Settlement on or purchases of derivative instruments |
|
(266,653 |
) |
|
(45,855 |
) |
|
(15,449 |
) |
|
(353,695 |
) |
|
(260,266 |
) |
||||
CEO severance (including employer taxes) |
|
- |
|
|
- |
|
|
- |
|
|
374,820 |
|
|
- |
|
||||
COO severance (including employer taxes) |
|
- |
|
|
145,319 |
|
|
- |
|
|
145,319 |
|
|
- |
|
||||
Write-off of JDA note receivable |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,399,030 |
|
||||
XTO final settlement |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,448,363 |
|
||||
Settlement and fees related to |
|
- |
|
|
- |
|
|
180,040 |
|
|
- |
|
|
1,269,358 |
|
||||
Professional fees for potential financing transactions |
|
564,588 |
|
|
- |
|
|
- |
|
|
564,588 |
|
|
- |
|
||||
Adjusted EBITDA |
$ |
(2,917,090 |
) |
$ |
134,244 |
|
$ |
1,308,403 |
|
$ |
(2,383,650 |
) |
$ |
19,062,405 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240330866148/en/
539-444-8002
info@empirepetrocorp.com
Investor Relations
Al
281-740-1334
wes@alpetrie.com
Source: