Empire Petroleum is out with its fourth quarter and 2024 full year financial reports showing total production revenue of $44 million for the year and a net loss of $16.2 million or 54 cents a share.
It was still an improvement over 2023 results when the company had a net loss of $12.5 million, or ($0.55) per diluted share.
Its 2024 adjusted EBITDA was $0.7 million compared to a loss of $2.4 million in 2023. The Tulsa company explained its 2024 loss was primarily related to operational challenges on the initial production optimization associated with the EOR in North Dakota. Empire said it anticipates resolving the non-recurring production issues in the second quarter of 2025.
The firm, with operations in the Permian Basin, Bakken region and central Gulf Coast region, and the states of New Mexico, North Dakota/Montana, Louisiana and Texas also revealed it plans to expand its technical focus into its Texas region. It stated it successfully completed initial infrastructure to start a new drilling program sometime in 2025 in Texas.
Empire’s fourth quarter 2024 net production totaled 2,356 barrels of oil equivalent a day including 1,581 barrels of oil a day. It was a 22% increase in oil production over a year earlier.
Since initiating phase one of Enhanced Oil Recovery (“EOR”) efforts in the Starbuck Drilling Program (“Starbuck”) in North Dakota, Empire remains committed to leveraging advanced recovery technologies to optimize production and convert additional wells into injectors; in Q4-2024, Empire secured approval from the North Dakota Industrial Commission to convert two more oil wells into injectors, further advancing its EOR strategy; converting three wells lowered the Company’s short-term production, while better positioning Empire for long-term production growth.
Empire also saw an increase in the fourth quarter 2024 of its revolving credit facility with Equity Bank from $10 million to $20 million with the expansion immediately providing more than $11 million in additional capacity.
Looking ahead into its 2025 operations, Phil Mulacek, Chairman of the Board stated, “As an emerging, agile company, Empire Petroleum has a unique ability to pivot quickly as we receive new data and insights. This flexibility is a tremendous advantage in the dynamic energy sector, allowing us to efficiently allocate capital and resources to the most promising opportunities where they will have the greatest impact.”
Mike Morrisett, President and CEO, added “with assets spanning multiple regions, Empire has the ability to shift our focus based on the latest geological, operational, and technical information. We continue to build on our progress in Starbuck and drive responsible energy development.”
North Dakota – Williston Basin:
- Empire anticipates completing the final equipment portion of the first EOR phase, which should allow the Company to increase production to its original levels, and as the technology is implemented, Empire anticipates production growth; and
- In February 2025, Empire secured NDIC approval for five new drilling permits for horizontal wells, as the Company continues to advance its growth strategy.
New Mexico – Permian Basin:
- From Q4-2024 to Q1-2025, Empire completed 19 workovers in the region, underscoring the Company’s commitment to maximizing well productivity, extending asset life, and optimizing operational output;
- The work completed during this period ensures continued production and mitigates a potential decline; and
- Empire continues the legal and regulatory actions against a third-party trespassing on the New Mexico water floods.
Texas – East Texas Basin:
- Empire will continue to use new technology, including the technical IP developed in other areas, which will allow the Company to expand its capacity for potential new joint ventures benefiting Empire and the companies it partners with.