Empire Petroleum Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Empire Petroleum Corp. filed its 2023 10-K, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

EMPIRE PETROLEUM CORP (EP) filed a Annual Report (10-K) with the SEC on March 28, 2024. Empire Petroleum Corp. filed its 2023 10-K report on March 28, 2024. The company's fiscal year ends on December 31st. Empire Petroleum Corp. was formerly known as Americomm Resources Corp. The company is involved in the Crude Petroleum & Natural Gas industry (SIC 1311). The filing includes details on various financial instruments and agreements, such as oil derivatives and credit facilities.

Why It Matters

For investors and stakeholders tracking EMPIRE PETROLEUM CORP, this filing contains several important signals. This filing provides a comprehensive overview of Empire Petroleum's financial health, operational activities, and strategic positioning within the energy sector for the past fiscal year. Investors and analysts can use this report to assess the company's performance, identify potential risks, and make informed investment decisions regarding Empire Petroleum Corp.

Risk Assessment

Risk Level: medium — EMPIRE PETROLEUM CORP shows moderate risk based on this filing. The company's financial performance and future prospects are subject to the volatility of crude oil and natural gas prices, as indicated by the inclusion of oil derivative contracts in the filing.

Analyst Insight

Monitor the company's hedging strategies and commodity price exposure in future filings to gauge its resilience to market fluctuations.

Key Numbers

• 2023-12-31 — Fiscal Year End (PERIOD OF REPORT)
• 2024-03-28 — Filing Date (FILED AS OF DATE)
• 1311 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 001-16653 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• EMPIRE PETROLEUM CORP (company) — FILER
• AMERICOMM RESOURCES CORP (company) — FORMER COMPANY
• AMERICOMM CORP (company) — FORMER COMPANY
• Energy Evolution Master Fund Ltd (company) — Member
• Equity Bank (company) — Credit Facility
• CrossFirst Bank (company) — Senior Revolver Loan Agreement

FAQ

Risk Factors

• Commodity Price Volatility [high — financial]: The company's financial results are significantly impacted by fluctuations in the prices of crude oil and natural gas.
• Environmental Regulations [medium — regulatory]: Operations in the oil and gas industry are subject to extensive environmental laws and regulations.
• Operational Risks [medium — operational]: Risks associated with exploration, production, and transportation of oil and gas can affect operations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-28: 10-K Filing Date — Date the annual report was submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document for understanding a company's annual financial health and operations.)

SIC Code

Standard Industrial Classification code used to classify businesses based on their primary activity. (Helps categorize the company within its specific industry sector (Crude Petroleum & Natural Gas).)

Key Financial Figures

• $0.001 — hares of the registrant's common stock, $0.001 par value, outstanding as of March 25,
• $75.45 — cordance with SEC guidelines. Prices of $75.45 per barrel of oil, $1.51 per Mcf and $9
• $1.51 — es. Prices of $75.45 per barrel of oil, $1.51 per Mcf and $9.82 per barrel of NGL wer
• $9.82 — 45 per barrel of oil, $1.51 per Mcf and $9.82 per barrel of NGL were utilized at Dece
• $91.14 — tilized at December 31, 2023. Prices of $91.14 per barrel and $4.23 per Mcf and $36.29
• $4.23 — , 2023. Prices of $91.14 per barrel and $4.23 per Mcf and $36.29 per barrel of NGL we
• $36.29 — $91.14 per barrel and $4.23 per Mcf and $36.29 per barrel of NGL were utilized at Dece

Filing Documents

• empire_form10k123123.htm (10-K) — 1059KB
• exh21_18813.htm (EX-21) — 7KB
• exh23-1_18813.htm (EX-23.1) — 3KB
• exh23-2_18813.htm (EX-23.2) — 4KB
• exh31-1_18813.htm (EX-31.1) — 13KB
• exh31-2_18813.htm (EX-31.2) — 12KB
• exh32-1_18813.htm (EX-32.1) — 6KB
• exh32-2_18813.htm (EX-32.2) — 7KB
• exh97_18813.htm (EX-97) — 38KB
• exh99-1_18813.htm (EX-99.1) — 38KB
• image_001.jpg (GRAPHIC) — 6KB
• image_003.jpg (GRAPHIC) — 287KB
• image_002.jpg (GRAPHIC) — 12KB
• 0001072613-24-000353.txt (&nbsp;) — 6245KB
• empr-20231231.xsd (EX-101.SCH) — 90KB
• empr-20231231_cal.xml (EX-101.CAL) — 61KB
• empr-20231231_def.xml (EX-101.DEF) — 150KB
• empr-20231231_lab.xml (EX-101.LAB) — 508KB
• empr-20231231_pre.xml (EX-101.PRE) — 303KB
• empire_form10k123123_htm.xml (XML) — 663KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 22 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 23 Item 4. Mine Safety Disclosures 23 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 24 Item 6. Reserved 24 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30 Item 8. Financial 30 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 30 Item 9A. Controls and Procedures 31 Item 9B. Other Information 32 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 32 PART III Item 10. Directors, Executive Officers and Corporate Governance 33 Item 11. Executive Compensation 33 Item 12. Security 33 Item 13. Certain Relationships and Related Transactions and Director Independence 33 Item 14. Principal Accountant Fees and Services 33 PART IV Item 15. Exhibits and Financial Statement Schedules 34 Item 16. Form 10-K Summary 37

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report on Form 10-K constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Additionally, forward-looking statements may be made orally or in press releases, conferences, reports, on our website or otherwise, in the future by us or on our behalf. Such statements are generally identifiable by the terminology used such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecasted," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "would" or other similar words, although not all forward-looking statements contain such identifying words. By their very nature, forward-looking to differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially from the results discussed in such forward-looking statements include, but are not limited to, those discussed in Item 1A ("Risk Factors") and elsewhere in this Form 10-K and in other documents that we file with or furnish to the Securities and Exchange Commission (the "SEC"), and the following: changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; our ability to replace reserves and efficiently develop current reserves; uncertainties inherent in estimating oil and gas reserves; management's ability to execute our business plan; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other diffi

forward-looking statements speak only as of the date of this report or, if earlier, as of the date they were made

forward-looking statements speak only as of the date of this report or, if earlier, as of the date they were made. 3 GLOSSARY OF CERTAIN OIL AND NATURAL GAS TERMS The following are abbreviations and definitions of terms commonly used in the oil and natural gas industry and within this report. Bbl – One barrel or 42 U.S. gallons liquid volume of oil or other liquid hydrocarbons. Boe – Barrel of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. The ratio does not assume price equivalency and, given price differentials, the price for a barrel of oil equivalent for natural gas differs significantly from the price for a barrel of oil. A barrel of NGLs also differs significantly in price from a barrel of oil. CG&A – Cawley, Gillespie & Associates, Inc. DD&A – Depreciation, depletion and amortization. ESG – Environmental, Social and Governance. Field – An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. LOE – Lease Operating Expense, a current period expense incurred to operate a well. MBbls – One thousand barrels of crude oil or other liquid hydrocarbons. MBoe – One thousand barrels of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. MMBoe – One million barrels of oil equivalent, determined using a ratio of six Mcf of natural gas equal to one barrel of oil equivalent. Mcf – One thousand cubic feet. MMcf – One million cubic feet. Net acres or net wells – The sum of the fractional working interests owned in gross acres or gross wells. NYSE American – NYSE American Stock Exchange. NGLs – Natural gas liquids measured in barrels. NGLs are made up of ethane, propane, isobutane, normal butane and natural gasoline, each of which have different uses and different pricing characteristics. Net revenue interest or NRI –The total re

BUSINESS

ITEM 1. BUSINESS. In this Form 10-K, references to "Empire", the "Company", "we", "our", and "us" refer to Empire Petroleum Corporation and its wholly-owned subsidiaries, unless context indicates otherwise. On March 8, 2022, our common stock began trading on the NYSE American under the symbol "EP" and CUSIP 292034303. Prior to trading on the NYSE American, our common stock was accessible on the OTCQB. Overview Empire Petroleum Corporation is an independent energy company that engages in unlocking value in developed assets. Empire operates the following wholly-owned subsidiaries in its areas of operations: Empire New Mexico LLC ("Empire New Mexico") Empire New Mexico LLC d/b/a Green Tree New Mexico Empire EMSU LLC Empire EMSU-B LLC Empire AGU LLC Empire NM Assets LLC Empire Rockies Region Empire North Dakota LLC ("Empire North Dakota") Empire ND Acquisition LLC ("Empire NDA") Empire Texas ("Empire Texas"), consisting of the following entities: Empire Texas LLC Empire Texas Operating LLC Empire Texas GP LLC Pardus Oil & Gas Operating, LP (owned 1% by Empire Texas GP LLC and 99% by Empire Texas LLC) Empire Louisiana LLC ("Empire Louisiana") Empire was incorporated in the state of Delaware in 1985. The consolidated financial statements of Empire Petroleum Corporation and subsidiaries include the accounts of the Company and its wholly-owned subsidiaries. Our mission is to increase shareholder value by building oil and natural gas reserves in strategic plays in the United States. To accomplish its mission, we plan on executing the following business strategies: Cost-effectively optimize well production Reduce unit operating costs and improve margins Target proved developed producing acquisitions in predictable fields that have historically had low production decline and long lives Focus on high-quality assets that add scale and provide synergies to our existing portfolio and core areas of operation We operate as a single segm

Properties

Properties We are an independent operator in four geographic areas in the United States. As operator, we manage and influence production on operated properties. We use a combination of experienced field personnel and third-party service providers to execute our mission. Our producing properties have reasonably predictable production profiles and cash flows, subject to commodity price and cost fluctuations. As is common in the industry in which we operate, we selectively participate in drilling and developmental activities in non-operated properties. Decisions to participate in non-operated properties are made after technical and economic analysis of the projects which also considers the operating expertise and historical track record of the operators. Empire New Mexico Empire New Mexico was formed when we purchased producing assets from XTO in May 2021. These assets are located in Lea County, New Mexico and include approximately 670 gross (483 net) producing and injection wells on a contiguous and consolidated acreage position consisting of 48,000 gross (41,000 net). We also have 14 RI wells with an average ORRI of 11%. Empire New Mexico's assets primarily produce oil with natural gas and NGLs accompanying oil production. Empire New Mexico's properties are in the following formations: Grayburg/San Andres (primary source of production) Queen-Seven Rivers-Yates Devonian Abo Blineberry Tubb Drinkard We have begun technical work for uplift opportunities in New Mexico. Empire North Dakota Empire North Dakota includes approximately 138 gross (108 net) producing or injection wells on 24,000 gross (18,000 net) acres in North Dakota and western Montana. We also have smaller nonoperating interests in 70 gross (less than 1 net) vertical wells. These properties primarily produce oil with some related gas production. Assets are located in the following formations: Madison (primary source of production) Bakken Duperow Red River Ratcliffe/Mission C

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View this 10-K filing on SEC EDGAR