An “outstanding year across the board,” is how Empire Petroleum’s President and CEO Mike Morrisett described 2022 for the Tulsa-based company as he released fourth quarter and full year financial results.
The company announced that higher net sales volumes and pricing drove a 95% increase in revenue to $52.9 million for full-year 2022 that resulted in net income of $7.1 million or 30 cents a diluted share. Adjusted net income totaled $15 million or 64 cents a share.
Empire’s fourth quarter revenue was $10.7 million a net loss of $2.3 million or 10 cents a diluted share and adjusted net income was $0.1 million. It’s fourth quarter 2022 adjusted EBITDA was $1.3 million. But the company managed to increase adjusted EBITDA by more than three times to $19.1 million for all of the 2022 fiscal year.
Empire finished 2022 with $12.2 million of liquidity including $11.9 million in cash and working capital of $5.1 million. The firm reported it reduced debt by 16% from $8.6 million at the end of 2021 to $7.2 million at the year-end 2022.
Morrisett credited the company’s recent asset acquisitions as putting Empire in a great position to launch its 2023 capital spending program.
“We plan to primarily focus our initial capital investments on our asset base in North Dakota through a combination of activities, including drilling and completions, capital workovers, recompletions and related infrastructure,” he added.
“In support of these efforts, we are adding to the depth of our technical and operations teams through the hiring of experienced professionals with a proven history of success.”
Empire completed a pilot drilling program on four wells in the fourth quarter with three of the four wells completed and placed on production during the first quarter of 2023. The company reported its initial field production increased from 3,000 barrels of oil a month to 7,000 and anticipates furth er production increases in 2023.
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