Empire Petroleum Corp has reported $7.68 million in gross sales income for the primary quarter (Q1), down from $8.99 million for a similar three-month interval final 12 months attributable to decrease manufacturing and decrease realized oil and gasoline costs.
Whole income fell to $5.1 million for the January-March 2026 quarter attributable to derivatives losses of $2.59 million.
The Tulsa, Oklahoma-based producer noticed its web consequence decline 57 p.c year-on-year however enhance 89 p.c quarter-on-quarter to a lack of $6.64 million or $0.18 per share. Nevertheless, adjusted for nonrecurring objects, the web consequence improved 18 p.c year-on-year and 57 p.c quarter-on-quarter to a lack of $3.47 million.
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Adjusted losses earlier than pursuits, taxes, depreciation and amortization deepened 32 p.c year-on-year however improved 81 p.c quarter-on-quarter to $730 million.
Empire – which holds property in Louisiana, New Mexico, North Dakota, Montana and Texas – averaged 1,880 barrels of oil equal a day (boed) in web output within the first three months of 2026. That fell from 2,049 boed in Q1 2025. The Q1 2026 determine consisted of 66 p.c oil, 24 p.c pure gasoline and 10 p.c pure gasoline liquids (NGLs).
Q1 2026 web gross sales averaged 1,880 boed, consisting of 1,248 barrels of oil per day, 196 barrels of NGLs per day and a couple of.62 million cubic ft of gasoline per day.
“Manufacturing in the course of the quarter was impacted by operational points in North Dakota and New Mexico, in addition to weather-related Power Majeure disruptions in Texas, with volumes anticipated to get better in Q2-2026”, Empire mentioned.
Empire’s common realized value dropped 7 p.c by prior-year comparability however rose 28 p.c sequentially to $45.41 per boe.
“World power markets proceed to be formed by tight provide responses, rising demand for reliable gasoline provide, and the rising worth of property with repeatable growth potential”, mentioned board chair Phil Mulacek.
“In Texas, our efforts have centered on infrastructure readiness, the place we elevated discipline compression over 500 p.c, permitting for selective in-field growth. The rise in compression de-bottlenecked the choke factors in our manufacturing capability and superior our Texas growth to make the most of the upper oil costs and be prepared for stronger gasoline gross sales.
“We’re making regular progress throughout current zones, and we consider we’re getting nearer to key analysis factors in deeper manufacturing intervals, together with parts of the consolidated Cotton Valley-Bossier and Western Haynesville intervals.
“In North Dakota, continued software of our thermal restoration expertise is enhancing our understanding of how warmth might be utilized extra successfully throughout the asset, and we’re re-working wells to extend oil manufacturing”.
President and chief government Mike Morrisett added, “The primary quarter was about shifting work ahead throughout our portfolio and carrying that momentum into preliminary manufacturing contributions in Texas, supported by improved infrastructure and system capability, whereas additionally taking steps to strengthen Empire’s monetary and operational place and suppleness”.
Empire ended Q1 2026 with $8.79 million in money, primarily consisting of proceeds from a rights providing in March that raised round $10 million gross and together with about $2.7 million out there from its credit score facility. Present property totaled $17.3 million.
Present liabilities stood at $29.27 million together with a $954 million present portion of long-term debt.
To contact the writer, electronic mail jov.onsat@rigzone.com
