Empire Petroleum Corporation reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. Total revenue for the third quarter was $9.4 million, down 14% from $11.4 million in the same quarter of 2024. For the nine-month period, revenue decreased to $27.1 million from $33.9 million year-over-year. The company attributed this decline primarily to lower average realized prices for oil and natural gas liquids, alongside reduced production volumes.
The company's net loss for the third quarter was $3.8 million, slightly higher than the $3.6 million loss reported in the same quarter of the previous year. For the nine months ended September 30, 2025, the net loss increased to $13.1 million from $12.0 million in 2024. The increase in losses was driven by higher operating expenses, including lease operating expenses and depreciation, depletion, and amortization costs, which rose due to capitalized costs associated with new drilling activities.
Empire Petroleum has made strategic moves to enhance its operational capabilities, including the completion of a subscription rights offering in August 2025 that raised approximately $2.5 million. This funding was partially used to settle outstanding debts. The company also reported a slight increase in its employee headcount, which contributed to higher general and administrative expenses. As of September 30, 2025, Empire had approximately 34.3 million shares outstanding, reflecting a modest increase from the previous year.
Operationally, the company reported a total production of 220,648 barrels of oil equivalent (Boe) for the third quarter, a decrease from 226,344 Boe in the same quarter of 2024. The average realized price for oil was $61.00 per barrel, down from $71.48 per barrel in the prior year. The company continues to face challenges, including a negative working capital of approximately $8.6 million, primarily due to costs associated with its Starbuck Drilling Program and operational issues in North Dakota.
Looking ahead, Empire Petroleum's management expressed concerns regarding its ability to maintain operations without additional funding, given the projected negative working capital and insufficient expected operating cash flows. However, the company has secured commitments from its major shareholders, Phil Mulacek and Energy Evolution, to provide financial support as needed. The company is actively seeking additional capital through debt or equity markets to improve its liquidity and sustain its operations in the coming months.
About EMPIRE PETROLEUM CORP
Empire Petroleum Corporation is an independent energy company focused on acquiring, developing, and optimizing oil and natural gas assets across the United States. Its core operations include producing properties in New Mexico, North Dakota, Texas, and Louisiana, with a focus on cost-effective production and reserve growth. The company markets its hydrocarbons through market-based pricing, serving primarily third-party purchasers, and emphasizes operational efficiency and strategic asset management.
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