Empire Petroleum Corporation Reports $6.6 Million Net Loss in Q1 2026

Empire Petroleum Corporation reported a net loss of $6.6 million for the first quarter of 2026, a significant increase from the $4.2 million loss recorded in the same period of 2025. Total revenues for the quarter were $5.1 million, down from $9.0 million year-over-year, primarily due to decreased production and lower realized prices across all product lines. Oil sales contributed $7.3 million, while gas and natural gas liquids sales were $185,548 and $197,395, respectively. The company’s operating loss also widened to $5.6 million from $4.0 million in the prior year, reflecting increased operational costs and lower revenues.

Empire's financial position showed notable changes compared to the previous fiscal period. Total assets increased to $78.0 million as of March 31, 2026, from $65.9 million at the end of 2025, driven by a rise in current assets, particularly cash, which surged to $8.8 million from $1.2 million. However, current liabilities also rose to $29.3 million, up from $24.3 million, leading to a negative working capital of approximately $12.0 million. The company’s total liabilities increased to $74.3 million, up from $70.5 million, largely due to higher accounts payable and accrued expenses.

Strategically, Empire has made significant moves, including the acquisition of a 40% interest in certain New Mexico properties from Energy Evolution, which was finalized in January 2026. This acquisition involved issuing 562,500 shares of common stock valued at $1.8 million. Additionally, the company participated in a three-well oil and natural gas development program in Louisiana, which will be funded through the issuance of approximately 1.8 million shares of common stock. Empire also raised approximately $10 million through a rights offering in March 2026, which bolstered its cash reserves.

Operationally, Empire's production volumes decreased, with oil production at 112,317 barrels for the first quarter of 2026, down from 119,635 barrels in the same quarter of 2025. Natural gas production increased to 235,517 Mcf, compared to 199,868 Mcf year-over-year, while natural gas liquids production fell to 17,628 barrels from 31,453 barrels. The average realized price for oil was $65.01 per barrel, down from $67.28, while natural gas prices plummeted to $0.79 per Mcf from $2.74, reflecting broader market trends.

Looking ahead, Empire anticipates continued challenges due to negative working capital and insufficient expected operating cash flows to meet obligations over the next 12 months. However, the company has secured commitments from its largest shareholders, Mr. Mulacek and Energy Evolution, to provide financial support as needed. Management is actively seeking additional capital through debt or equity markets to enhance liquidity and support ongoing operations and potential acquisitions.