Empire Petroleum Corp. Files Q2 2024 10-Q

TL;DR

Empire Petroleum filed its Q2 10-Q. Energy sector player. Check financials.

AI Summary

Empire Petroleum Corp. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The company, formerly known as Americomm Corp, is based in Tulsa, Oklahoma, and operates in the crude petroleum & natural gas sector.

Why It Matters

This filing provides investors with a quarterly update on Empire Petroleum's financial health and operational performance, crucial for understanding its current standing in the energy market.

Risk Assessment

Risk Level: medium — The company operates in the volatile crude petroleum and natural gas industry, which carries inherent market and operational risks.

Key Numbers

• 20660000 — P5Y (Likely represents a financial figure, but context is unclear without full filing details.)

Key Players & Entities

• EMPIRE PETROLEUM CORP (company) — Filer
• AMERICOMM RESOURCES CORP (company) — Former Company Name
• AMERICOMM CORP (company) — Former Company Name
• TULSA (location) — Business Address City
• OK (location) — Business Address State
• DE (location) — State of Incorporation
• 20240630 (date) — Period of Report
• 20240814 (date) — Filing Date

FAQ

Key Financial Figures

• $0.001 — hares of the registrant's common stock, $0.001 par value, outstanding as of the latest
• $25,493,019 — (a) Incurred capital expenditures were $25,493,019 and $3,696,486 for the respective perio
• $3,696,486 — pital expenditures were $25,493,019 and $3,696,486 for the respective periods. The differe

Filing Documents

• empire_form10q063024.htm (10-Q) — 714KB
• exh31-1_18860.htm (EX-31.1) — 14KB
• exh31-2_18860.htm (EX-31.) — 12KB
• exh32-1_18860.htm (EX-32.1) — 6KB
• exh32-2_18860.htm (EX-32.2) — 6KB
• 0001072613-24-000631.txt ( ) — 4403KB
• empr-20240630.xsd (EX-101.SCH) — 49KB
• empr-20240630_cal.xml (EX-101.CAL) — 57KB
• empr-20240630_def.xml (EX-101.DEF) — 131KB
• empr-20240630_lab.xml (EX-101.LAB) — 352KB
• empr-20240630_pre.xml (EX-101.PRE) — 251KB
• empire_form10q063024_htm.xml (XML) — 541KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18-23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 25

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) EMPIRE PETROLEUM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2024 2023 ASSETS Current Assets: Cash $ 9,257,773 $ 7,792,508 Accounts Receivable 8,783,051 8,354,636 Derivative Instruments — 406,806 Inventory 1,451,195 1,433,454 Prepaids 788,073 757,500 Total Current Assets 20,280,092 18,744,904 Property and Equipment: Oil and Natural Gas Properties, Successful Efforts 123,509,574 93,509,803 Less: Accumulated Depreciation, Depletion and Impairment ( 27,040,862 ) ( 22,996,805 ) Total Oil and Gas Properties, Net 96,468,712 70,512,998 Other Property and Equipment, Net 1,625,870 1,883,211 Total Property and Equipment, Net 98,094,582 72,396,209 Other Noncurrent Assets 1,570,531 1,474,503 Total Assets $ 119,945,205 $ 92,615,616 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 13,641,835 $ 16,437,219 Accrued Expenses 8,105,002 7,075,302 Derivative Instruments 189,468 — Current Portion of Lease Liability 425,528 432,822 Current Portion of Note Payable - Related Party (Note 8) 1,060,004 1,060,004 Current Portion of Long-Term Debt 339,825 44,225 Total Current Liabilities 23,761,662 25,049,572 Long-Term Debt 8,523,756 4,596,775 Long Term Lease Liability 338,953 544,382 Asset Retirement Obligations 28,649,500 27,468,427 Total Liabilities 61,273,871 57,659,156 Commitments and Contingencies (Note 15) Stockholders' Equity: Series A Preferred Stock - $ .001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively — — Common Stock - $ .001 Par Value, 190,000,000 Shares Authorized, 31,375,375 and 25,503,530 Shares Issued and Outstanding, Respectively 90,897 85,025 Additional Paid-in Capital 131,564,222 99,490,253 Accumulated Deficit ( 72,983,785 ) ( 64,618,818 ) Total Stockholders

financial statements

financial statements. 2 EMPIRE PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue: Oil Sales $ 12,287,272 $ 9,147,611 $ 21,729,236 $ 18,086,326 Gas Sales ( 115,833 ) 248,686 261,297 904,721 NGL Sales 617,029 362,181 1,033,240 867,135 Total Product Revenues 12,788,468 9,758,478 23,023,773 19,858,182 Other 11,227 18,361 21,313 37,725 Loss on Commodity Derivatives ( 1,453 ) ( 66,657 ) ( 859,603 ) ( 133,480 ) Total Revenue 12,798,242 9,710,182 22,185,483 19,762,427 Costs and Expenses: Lease Operating Expense 7,542,685 7,099,000 14,930,108 13,619,163 Production and Ad Valorem Taxes 1,065,718 721,275 1,899,165 1,479,389 Depletion, Depreciation & Amortization 2,676,981 711,042 4,167,111 1,333,531 Accretion of Asset Retirement Obligation 492,449 405,361 977,798 806,636 General and Administrative Expense: General and Administrative Expense 2,354,080 1,894,204 5,233,117 4,917,483 Stock-Based Compensation 591,635 1,180,806 1,301,637 2,130,445 Total General and Administrative Expense 2,945,715 3,075,010 6,534,754 7,047,928 Total Costs and Expenses 14,723,548 12,011,688 28,508,936 24,286,647 Operating Income (Loss) ( 1,925,306 ) ( 2,301,506 ) ( 6,323,453 ) ( 4,524,220 ) Other Income and (Expense): Interest Expense ( 735,220 ) ( 184,887 ) ( 1,050,269 ) ( 422,186 ) Other Income (Expense) (Note 8) ( 1,729,245 ) 21,484 ( 991,245 ) 21,906 Income (Loss) Before Income Taxes ( 4,389,771 ) ( 2,464,909 ) ( 8,364,967 ) ( 4,924,500 ) Income Tax (Provision) Benefit — — — — Net Income (Loss) $ ( 4,389,771 ) $ ( 2,464,909 ) $ ( 8,364,967 ) $ ( 4,924,500 ) Net Income (Loss) per Common Share: Basic $ ( 0.15 ) $ ( 0.11 ) $ ( 0.30 ) $ ( 0.22 ) Diluted $ ( 0.15 ) $ ( 0.11 ) $ ( 0.30 ) $ ( 0.22 ) Weighted Average Number of Comm

financial statements

financial statements. 3 EMPIRE PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) Additional Common Stock Preferred Stock Paid-In Accumulated Shares Par Value Shares Par Value Capital Deficit Total Balances, December 31, 2023 25,503,530 $ 85,025 6 $ — $ 99,490,253 $ ( 64,618,818 ) $ 34,956,460 Net Loss — — — — — ( 3,975,196 ) ( 3,975,196 ) Stock-Based Compensation 120,144 120 — — 709,882 — 710,002 Balances, March 31, 2024 25,623,674 $ 85,145 6 $ — $ 100,200,135 $ ( 68,594,014 ) $ 31,691,266 Net Loss — — — — — ( 4,389,771 ) ( 4,389,771 ) Rights Offering (Note 10) 4,132,232 4,132 — — 20,507,397 — 20,511,529 Conversion of Related-Party Note (Note 8) 800,000 800 — — 6,160,102 — 6,160,902 Partial Conversion of Option to Purchase (Note 3) 600,000 600 — — 3,155,400 — 3,156,000 Warrants Exercised (Note 10) 128,800 129 — — 949,642 — 949,771 Stock-Based Compensation 90,669 91 — — 591,546 — 591,637 Balances, June 30, 2024 31,375,375 90,897 6 — $ 131,564,222 ( 72,983,785 ) 58,671,334 Additional Common Stock Preferred Stock Paid-In Accumulated Shares Par Value Shares Par Value Capital Deficit Total Balances, December 31, 2022 22,093,503 $ 81,615 6 $ — $ 75,303,479 $ ( 52,149,213 ) $ 23,235,881 Net Loss — — — — — ( 2,459,591 ) ( 2,459,591 ) Impact of Former CEO settlement — — — — ( 2,126,131 ) — ( 2,126,131 ) Stock-Based Compensation 11,089 11 — — 949,628 — 949,639 Balances, March 31, 2023 22,104,592 $ 81,626 6 $ — $ 74,126,976 $ ( 54,608,804 ) $ 19,599,798 Net Loss — — — — — ( 2,464,909 ) ( 2,464,909 ) Stock-Based Compensation 20,000 20 — — 1,180,786 — 1,180,806 Balances, June 30, 2023 22,124,592 81,646 6 — 75,307,762 ( 57,073,713 ) 18,315,695 See accompanying not

financial statements

financial statements. 4 EMPIRE PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, 2024 2023 Cash Flows From Operating Activities: Net Income (Loss) $ ( 8,364,967 ) $ ( 4,924,500 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities: Stock-Based Compensation 1,301,637 2,130,445 Amortization of Right of Use Assets 271,467 163,785 Depreciation, Depletion and Amortization 4,167,111 1,333,531 Accretion of Asset Retirement Obligation 977,798 806,636 Loss on Commodity Derivatives 859,603 133,480 Settlement on or Purchases of Commodity Derivative Instruments ( 263,330 ) ( 41,187 ) Loss on Financial Derivatives (Note 8) 998,000 — Amortization of Debt Discount on Convertible Notes 500,382 — Gain on extinguishment of debt ( 16,611 ) — Change in Operating Assets and Liabilities: Accounts Receivable ( 630,061 ) ( 2,039,189 ) Inventory, Oil in Tanks ( 17,741 ) ( 265,802 ) Prepaids, Current 460,201 708,549 Accounts Payable 1,854,786 ( 1,697,939 ) Accrued Expenses 1,029,700 ( 3,642,305 ) Other Long-Term Assets and Liabilities ( 1,021,396 ) ( 650,134 ) Net Cash Provided By (Used In) Operating Activities 2,106,579 ( 7,984,630 ) Cash Flows From Investing Activities: Deposit for Acquistion of Oil and Natural Gas Properties — ( 670,000 ) Additions to Oil and Natural Gas Properties (a) ( 30,143,188 ) ( 3,127,847 ) Purchase of Other Fixed Assets ( 119,891 ) ( 153,036 ) Cash Paid for Right of Use Assets ( 250,475 ) ( 204,105 ) Sinking Fund Deposit — 2,779,000 Net Cash Provided By (Used In) Investing Activities ( 30,513,554 ) ( 1,375,988 ) Cash Flows From Financing Activities: Borrowings on Credit Facility 3,950,000 — Proceeds from Promissory Note - Related Party (Note 8) 5,000,000 — Proceeds from Rights Offering (Net of Transaction Costs) (Note 10) 20,511,529 —

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