Empire Petroleum Corporation · AMEX:EP
Empire Petroleum — Q3 2024 Earnings Presentation
17 slides from Empire Petroleum's earnings presentation, Nov 1, 2024
Slide 1: Empire Petroleum Corporation Results for 3rd Quarter 2024
Empire Petroleum Corporation RESULTS for 3rd QUARTER 2024 empirepetroleumcorp.com NYSE American: EP
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation has been prepared by Empire Petroleum Corporation (the “Company”) to assist Investor in making its own evaluation of the Company and any proposed transaction between the Company and Investor. This presentation does not purport to be all-inclusi
Slide 3: 3rd Quarter 2024 Financial and Operational Performance
3rd Quarter 2024 Financial and Operational Performance North Dakota Starbuck Drilling Program ▪ Completed first stage of EOR(1) activities, successfully converting three wells into injectors ▪ Q3-2024 Empire began preparations for filing a provisional patent application with the USPTO(2) in connecti
Slide 4: 3rd Quarter 2024 Financial Performance
3rd Quarter 2024 Financial Performance Q3 Net Production of 2,460 Boe (1) /day including 1,573 Bbl/day ▪ Boe/day is comprised ~64% oil, ~17% NGLs and ~19% Natural Gas Rights Offering ▪ Net proceeds will be used for previous, current and future drilling activity in ND and NM, workovers and recompleti
Slide 5: Operating Strategy – 2024 Outlook (North Dakota)
Operating Strategy – 2024 Outlook 1 North Dakota – Williston Basin ▪ Completed its initial 13-well drilling program in the Starbuck Field in Q3-2024, with three injection wells expected to be instrumental in increasing production ▪ Production decline in Q3-2024 resulted from two infield optimization
Slide 6: Operating Strategy – 2024 Outlook (North Dakota)
Operating Strategy – 2024 Outlook North Dakota – Williston Basin ▪ During Q4-2024, Empire is working on standard commissioning operations on the EOR equipment before the EOR can reach steady state, which is expected in Q1-2025 ▪ Empire officially submitted its patent application to the USPTO in Q4-2
Slide 7: Operating Strategy – 2024 Outlook (New Mexico)
Operating Strategy – 2024 Outlook 2 New Mexico – Permian Basin ▪ Empire continues the legal and regulatory actions against third-parties trespassing on the New Mexico water floods ▪ From May 2021 through September 2024, Empire estimates gross costs in excess of ~$25.0-30.0MM have been, and continue
Slide 8: Financial Performance
Financial Performance ▪ Completed a $10.0MM Rights Offering at $5.05 per share OPERATING LOSS ($MM) ▪ Closed in November 2024 $0.0 ($0.5) ▪ Capital spend of ~$38.3MM for the nine months ended ($1.0) 9/30/2024 ($1.5) ($1.9) ▪ Primarily related to the continued drilling and ($2.0) completions activity
Slide 9: Thank you
Thank you Phil Mulacek, Chairman of the Board Mike Morrisett, President, CEO & Director 539.444.8002 info@empirepetrocorp.com Disclaimer: This presentation is for information purposes only and does not constitute an offer to sell or issue, or the solicitation of an offer to buy, acquire or subscribe
Slide 10: Appendix
APPENDIX
Slide 11: Statement of Operations (Condensed)
Statement of Operations (Condensed) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Revenue: Oil Sales $8,938,715 $9,147,611 $9,492,127 $9,106,041 $9,441,964 $12,287,272 $10,341,280 Gas Sales 656,035 248,686 411,217 410,816 377,130 (115,833) 8,547 NGL Sales 504,954 362,181 411,624 381,497 41
Slide 12: Operating Data (Condensed)
Operating Data (Condensed) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net Production Volumes: Oil (Bbl) 120,257 128,413 120,177 119,022 130,760 160,283 144,674 Natural Gas (Mcf) 231,218 211,293 195,908 215,855 211,820 241,242 255,195 Natural Gas Liquids (Bbl) 39,756 30,678 35,568 30,011
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (1) 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Net Loss ($2,459,591) ($2,464,909) ($2,747,628) ($4,797,477) ($3,975,196) ($4,389,771) ($3,639,614) Add Back: Interest Expense 237,299 184,887 249,796 328,445 315,049 735,220 196,306 DD&A 622,489 711,042 727,9
Slide 14: Rockies
Rockies ▪ Current Boe/day: 725 (1) ▪ Large working interest in several prolific fields centered around Bottineau County and Elm Coulee Field in Richland County, Montana ▪ We have identified strong upside in other fields for 2024 through 2026 for Pilot and drilling increases of up to 60+ wells ▪ Larg
Slide 15: New Mexico
New Mexico ▪ Current Boe/day: 1,486 (1) ▪ Contiguous 48,000 gross acre position in prolific Central Basin Platform, Permian, of Lea County, New Mexico ▪ Substantial oil in place with additional recovery potential from infills and waterflood optimization ▪ Upgrading field systems ▪ Primary, secondary
Slide 16: Texas
Texas ▪ Current Boe/day: 239 (1) ▪ Principal producing asset in the Fort Trinidad Field in Houston and Madison Counties, Texas ▪ Over 30,000 net acres held-by-production Eagle Ford ▪ Stacked plays in multiple geologic horizons Group Woodbine ▪ Well activation program underway with focus on bypassed
Slide 17: Corporate Responsibility and ESG
Corporate Responsibility and ESG Environmental ▪ Good corporate citizenship is a key part of our cultural identity, which includes being positive stewards to the environment and the communities in which we operate. ▪ Our focus on minimizing our operational impact is multi-faceted, including seeking