Empire Petroleum Posts $52.9MM Annual Revenue

Empire Petroleum Corp. reported Monday $52.9 million in revenue for 2022, up 95 percent from 2021 on higher sales volumes and prices.

The New York-listed company saw a 46-percent surge in sales last year to 2,163 barrels of oil equivalent per day (boed). Oil comprised the bulk of the sales at 61 percent, natural gas liquids (NGLs) accounted for 20 percent and natural gas 19 percent, Empire said in a press release.

It said it had launched into production four new Bakken wells in the fourth quarter. The Bakken rock formation sits on the Williston Basin of Montana and North Dakota states. Bakken and the Three Forks Formations in the same basin are estimated to hold 4.3 billion barrels of unconventional oil and 4.9 trillion cubic feet of unconventional natural gas according to an assessment by the U.S. Geological Survey published December 15, 2021.

In Empire’s Starbuck Field Pilot Project Program in North Dakota, production has accelerated to 7,000 barrels of oil a month from 3,000 barrels of oil per month last year, according to the announcement.

Empire’s fourth-quarter revenue however fell to $10.7 million from the preceding quarter’s $14 million as sales dipped to 2,149 boed from 2,232 boed.

“Contributing to the sequential decrease from the third quarter of 2022 was temporary downtime due to the impact of severe winter storms across the Company’s operations and shut-ins of production for Empire’s assets in the Rockies Region primarily associated with taking certain wells offline temporarily as the Company completed the execution of the Starbuck Program”, the release explained.

Despite a net loss of $2.29 million in the fourth quarter, Empire ended 2022 “in a strong financial position” with a net income of $7.1 million for the year, $12.2 million in liquidity including $11.9 million in cash, and working capital of $5.1 million. It has also reduced its debt by 16 percent to $7.2 million at yearend 2022 from $8.6 million at the end of 2021. Debt now represents less than three percent of Empire’s current market capitalization, it said.

Empire’s proved reserves climbed to 13.2 million barrels of oil equivalent (MMboe) as of the end of last year, up 27 percent year on year. It reported “positive revisions of previous quantity estimates of 2.2 MMBoe due primarily to the inclusion of NGLs in New Mexico, extensions and discoveries of 0.7 MMBoe, and acquisitions of 0.7 MMBoe”.

Acquisitions consumed about $3 million of Empire’s $14-million capital investments last year. “Non-acquisition spending of approximate $11 million was primarily related to well enhancement projects in North Dakota and non-operated drilling”, it said.

“We plan to primarily focus our initial capital investments on our asset base in North Dakota through a combination of activities, including drilling and completions, capital workovers, recompletions and related infrastructure”, said Empire president and chief executive Mike Morrisett.

The company traded 7.2 percent higher on closing on the New York Stock Exchange Tuesday after announcing its 2022 results.

To contact the author, email jov.onsat@gmail.com