Empire Petroleum Reports Q3 Results and Operational Updates
Q3 Financial Performance
Empire Petroleum unveiled its third quarter earnings report this week indicating it is moving forward with increased operations in New Mexico and the Permian Basin.
It reported Q3-2025 total product revenue of $9.4 million, a net loss of $3.8 million, or ($0.11) per diluted share but also saw oil production increase by 5% compared to the second quarter of the year. Adjusted EBITDA totaled $0.1 million for the third quarter.
Empire’s net production volumes were 1,566 barrels of oil a day and 2,398 barrels of oil equivalent a day. The Boe/d was comprised of 65% oil, 19% natural gas liquids and 16% natural gas.
Leadership Comments
“Empire continues to execute with precision and discipline as we move through the remainder of 2025,” said Phil Mulacek, Chairman of the Board. “Our operational teams are achieving measurable progress across multiple fronts, from consistent improvement in North Dakota’s EOR program to ongoing technical advancements in Texas.”
The North Dakota effort is the firm’s Starbuck Drilling Program which is an enhanced oil recovery plan.
Texas Preparations
In Texas, Empire furthered preparations for its inaugural drilling campaign, positioning additional locations to support a scalable development plan. The company said, ” Given current commodity prices, Empire is strategically pacing the start of drilling operations, now anticipated in 2026, to align capital development with market conditions and maximize long-term value creation.”
Mulacek explained that as natural gas prices increase and demand tightens in 2026, the company plans a series of drilled-but-uncompleted wells positioning Empire to transition into higher-value gas development in the coming year.
As pricing” signals continue to strengthen, we expect natural gas to play an increasingly meaningful and leading role in Empire’s development strategy and earnings growth trajectory beginning in 2026,” he added
CEO Commentary
Mike Morrisett, President and CEO, added, “Our third quarter results reflect steady operational execution and focused progress across Empire’s core assets. In North Dakota, recent upgrades and system enhancements have improved reliability and consistency, setting the stage for stable production levels. In Texas, we continue to prepare for the launch of our first drilling program in the area, completing pre-drill activities and advancing readiness across multiple locations. In New Mexico, we’re maintaining production and pursuing incremental improvements to maximize efficiency across our legacy unitized assets.”
North Dakota – Williston Basin
Starbuck EOR Program Details
Empire continues to execute targeted enhancements to the Starbuck EOR program in North Dakota, where system performance and production consistency have shown measurable improvement through 2025;
The Company is installing a new pipeline segment to supply higher-quality water to a dedicated circuit within the EOR system, an upgrade expected to improve reliability, minimize scaling, and reduce long-term operating costs;
In parallel, Empire has implemented multiple refinements across EOR equipment and processes, further optimizing performance and efficiency;
With these upgrades progressing and the system operating more consistently, Empire anticipates achieving stable, sustained production levels by year-end; and
The Company is also evaluating opportunities to apply its proprietary EOR model across additional assets in North Dakota, advancing a methodical, data-driven approach to long-term field development.
New Mexico – Permian Basin
Commission Order and ROZ Rights
On September 12, 2025, the New Mexico Conservation Commission (“Commission”) issued Order No. R-24004 (the “Order”) regarding the Company’s rights to the Residual Oil Zone (“ROZ”) in the Eunice Monument South Unit’s (“EMSU”) Unitized Interval. The Commission unanimously affirmed the existence of a ROZ in the Grayburg and San Andres formations within the EMSU and confirmed Empire’s exclusive rights to produce the ROZ under the 1984 Commission Order.
Based on these findings, the Commission:
Denied Goodnight’s applications to drill five new saltwater disposal (“SWD”) wells within the boundaries of the EMSU;
Denied Goodnight’s application to increase injection volumes in an existing SWD well;
Suspended Goodnight’s four SWD wells located within the EMSU boundaries to provide Empire the opportunity to establish the CO EOR pilot project;
The Commission recently granted a limited request for stay and rehearing to consider (1) the authority for suspension in light of certain factual findings; and (2), the authority or discretion of the New Mexico Oil Conservation Division in implementation of the Order;
Pending the Commission’s decision, Empire plans to proceed with motions to revoke the existing permits granted to the remaining three SWD Companies disposing wastewater into the EMSU and Arrowhead Grayburg Unit Unitized Interval, while concurrently advancing litigation for trespass and damages;
As of the date of this release, the briefing and oral hearing on the rehearing has taken place, and Empire is awaiting the Commission’s decision; and
The Company expects final resolution of this matter to result in a meaningful reduction in operating expenses and contribute to improved financial performance going forward.
Texas – East Texas Basin
Development Plan and Drilling Preparation
Empire continues to advance its development program in Texas, maintaining readiness for its inaugural drilling campaign as part of the Company’s broader growth strategy in the region;
Technical groundwork completed to date, including seismic reprocessing, surface preparation, and location planning, has positioned the Company for efficient execution once drilling commences;
In Q4-2025, Empire will initiate re-entry and workover rig operations on the initial well location to finalize target zones for optimal lateral location, marking a key pre-drill milestone in the development timeline;
Given current commodity pricing, the Company is targeting the start of drilling operations in 2026, allowing for optimal timing and resource allocation;
The upcoming program is designed to test multiple prospective pay zones identified during the initial technical evaluation, utilizing approximately a dozen DUC wells to accelerate the Company’s 2026 gas-focused development strategy; and
Additionally, Empire is advancing horizontal gas development opportunities aimed at delivering long-term, capital-efficient production growth.