How good was the second quarter for Empire Petroleum?
The company announced its quarterly revenue report this week showing revenue from oil, natural gas and natural gas liquids sales was $16.5 million, triple the $4.9 million revenue reported in the 2021 second quarter.
The Tulsa-based company reported net income was $5.5 million compared to a net loss of $5.3 million in the second quarter a year earlier, a positive swing of $10.8 million.
The company stated the more than 300% increase in revenue was due “to successful execution of the company’s strategy” to cost effectively produce more volume combined with favorable pricing.
“The second quarter was a record period for Empire. We reported revenue of $16.5 million, three-times higher than last year, driven by increased production from Empire’s assets including the recent acquisition of North Dakota properties that we completed during the second quarter,” stated Tommy Pritchard, Chief Executive Officer of Empire.
Investors apparently liked what they heard as Empire stock finished the day with a gain of 6.84% and settled up 96 cents to finish the day at $15 a share.
Empire also had an average oil price in the quarter of $109 a barrel compared to $62 a barrel a year earlier and $91 a barrel in the first quarter of 2022.
Empire’s operations and producing assets are in Texas, Louisiana, North Dakota, Montana and New Mexico. The company stated it increased average daily production by 87.5% to more than 195,000 BOE compared to 104,000 BOE a year ago.
During the second quarter, Empire closed the acquistion of operated and non-operated oil and natural gas assets in the Landa Madison, Landa West Madison and Birdbear Areas in North Dakota, all funded with cash on hand.
It also kicked off the Starbuck Field Enhancement Program, a $10 million investment with a targeted multiple increase in production.
In the Bakken, Empire elected to participate in four non-op horizontal wells to begin drilling in the third quarter directly offsetting the Sundance Kid wells in Montana, which Empire participated in the fourth quarter of 2021. The Sundance Kid four (4) well Bakken tests have produced over 350,000 barrels of oil in approximately 220 production days, resulting in a production increase of approximately 115 barrels of oil per day net to Empire’s interests in the wells.
In the first half of this year, Empire’s revenue from oil, natural gas and natural gas liquid sales totaled $29.7 million compared to $7.3 million a year earlier. That translates into a 308% increase.
Its net income for the first half of the year was $9.2 million, far better than the net loss of $6.3 million last year at this time.
Naturally, Empire President Mike Morrisett was excited about the glowing economic news for his company.
“In June, Empire’s common stock was added to the Russell 3000® and Russell 2000® Indexes, reflecting the increased liquidity and significant growth of our market valuation since we uplisted to the NYSE American last quarter. We also continued to strengthen our balance sheet with the nearly $3 million we received from the conversion of all legacy warrants.”
Morrisett said Empire continues to have strong resources including more than $12 million in cash as well as a low debt level.
Click here for full release