Empire Petroleum Corp. Files Q3 2024 10-Q

TL;DR

**Empire Petroleum Corp. 10-Q filed: Q3 2024 results are in. Check financials.**

AI Summary

Empire Petroleum Corp. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year. Key financial data and operational details for this period are presented, reflecting the company's performance in the crude petroleum and natural gas sector.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Empire Petroleum Corp., crucial for understanding the company's current standing and future prospects in the energy market.

Risk Assessment

Risk Level: medium — As a company in the volatile crude petroleum and natural gas sector, Empire Petroleum Corp. faces inherent risks related to commodity prices, regulatory changes, and operational challenges.

Key Numbers

• 20660000 — Total Assets (Reported as of a specific date within the filing period.)

Key Players & Entities

• EMPIRE PETROLEUM CORP (company) — Filer
• 0000887396 (company) — Central Index Key
• TULSA (location) — Business Address City
• 20240930 (date) — Period of Report
• 20241113 (date) — Filing Date

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock $0.001 par value EP NYSE American Indicate
• $38,286,018 — (a) Incurred capital expenditures were $38,286,018 and $6,165,174 for the respective perio
• $6,165,174 — pital expenditures were $38,286,018 and $6,165,174 for the respective periods. The differe

Filing Documents

• empire_form10q093024.htm (10-Q) — 808KB
• exh31-1_18900.htm (EX-31.1) — 14KB
• exh31-2_18900.htm (EX-31.) — 12KB
• exh32-1_18900.htm (EX-32.1) — 6KB
• exh32-2_18900.htm (EX-32.2) — 6KB
• 0001072613-24-000864.txt ( ) — 4547KB
• empr-20240930.xsd (EX-101.SCH) — 44KB
• empr-20240930_cal.xml (EX-101.CAL) — 60KB
• empr-20240930_def.xml (EX-101.DEF) — 121KB
• empr-20240930_lab.xml (EX-101.LAB) — 337KB
• empr-20240930_pre.xml (EX-101.PRE) — 242KB
• empire_form10q093024_htm.xml (XML) — 602KB

Financial Statements

Financial Statements 6-17 Item 2.

Management's Discussion and Analysis

Management's Discussion and Analysis of Financial Condition and Results of Operations 18-24 Item 3.

Quantitative and Qualitative Disclosures

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 26

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements EMPIRE PETROLEUM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2024 2023 ASSETS Current Assets: Cash $ 3,149,716 $ 7,792,508 Accounts Receivable 6,505,741 8,354,636 Derivative Instruments — 406,806 Inventory 1,499,206 1,433,454 Prepaids 576,340 757,500 Total Current Assets 11,731,003 18,744,904 Property and Equipment: Oil and Natural Gas Properties, Successful Efforts 136,391,055 93,509,803 Less: Accumulated Depreciation, Depletion and Impairment ( 29,561,539 ) ( 22,996,805 ) Total Oil and Gas Properties, Net 106,829,516 70,512,998 Other Property and Equipment, Net 1,436,491 1,883,211 Total Property and Equipment, Net 108,266,007 72,396,209 Other Noncurrent Assets 1,245,519 1,474,503 Total Assets $ 121,242,529 $ 92,615,616 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 18,238,400 $ 16,437,219 Accrued Expenses 8,146,457 7,075,302 Current Portion of Lease Liability 415,850 432,822 Current Portion of Note Payable - Related Party (Note 8) — 1,060,004 Current Portion of Long-Term Debt 193,178 44,225 Total Current Liabilities 26,993,885 25,049,572 Long-Term Debt 8,512,020 4,596,775 Long Term Lease Liability 238,674 544,382 Asset Retirement Obligations 28,968,173 27,468,427 Total Liabilities 64,712,752 57,659,156 Commitments and Contingencies (Note 15) Stockholders' Equity: Series A Preferred Stock - $ 0.001 Par Value, 10,000,000 Shares Authorized, 6 and 6 Shares Issued and Outstanding, Respectively — — Common Stock - $ 0.001 Par Value, 190,000,000 Shares Authorized, 31,656,934 and 25,503,530 Shares Issued and Outstanding, Respectively 91,179 85,025 Additional Paid-in Capital 133,061,997 99,490,253 Accumulated Deficit ( 76,623,399 ) ( 64,618,818 ) Total Stockholders' Equity 56,529,777 34,956,460 Total Liabilities and Stockholders' Equit

financial statements

financial statements. Assets and Liabilities Measured at Fair Value on a Recurring Basis - Empire uses a binomial lattice valuation model to value Level 3 derivative liabilities at inception and on subsequent valuation dates. This model incorporates transaction details such as Empire's stock price, contractual terms of the Promissory Note, and unobservable inputs classified as Level 3 including risk-free rate and expected volatility. As of the conversion option exercise date of May 24, 2024, these unobservable inputs were 5.0% and 46.9%, respectively. 7 Fair Value on a Nonrecurring Basis Empire applies the provisions of fair value measurement on a non-recurring basis to its non-financial assets and liabilities, including oil and gas properties and asset retirement obligations. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. No triggering events that require assessment of such items were observed during the nine months ended September 30, 2024. Related Party Transactions Transactions between related parties are considered to be related party transactions even though they may not be given accounting recognition. FASB ASC 850, Related Party Disclosures requires that transactions with related parties that would have influence in decision making shall be disclosed so that users of the financial statements can evaluate their significance. Related party transactions typically occur within the context of the following relationships: affiliates of the entity; entities for which investments in their equity securities is typically accounted for under the equity method by the investing entity; trusts for the benefit of employees; principal owners of the entity and members of their immediate families; management of the entity and members of their immediate families; and other parties that can significantly in

financial statements

financial statements. 8 Note 3 – Property Empire follows the successful efforts method of accounting for its oil and natural gas activities. Under this method, costs to acquire oil and natural gas properties and costs incurred to drill and equip development and exploratory wells are deferred until exploration and completion results are evaluated. Exploration drilling costs are expensed if recoverable reserves are not found. Upon sale or retirement o

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View this 10-Q filing on SEC EDGAR