tiprankstipranks
Trending News
More News >
Empire Petroleum (EP)
:EP
US Market

Empire Petroleum (EP) AI Stock Analysis

Compare
66 Followers

Top Page

EP

Empire Petroleum

(NYSE MKT:EP)

Rating:51Neutral
Price Target:
$5.50
▼(-2.65%Downside)
Empire Petroleum faces significant financial challenges with profitability and cash flow issues being the most pressing concerns. While technical indicators show some positive momentum, the negative valuation metrics limit the stock's appeal. Improvements in financial health and sustainability are crucial for a better score.

Empire Petroleum (EP) vs. SPDR S&P 500 ETF (SPY)

Empire Petroleum Business Overview & Revenue Model

Company DescriptionEmpire Petroleum Corporation is an energy company engaged in the exploration and production of oil and natural gas. The company focuses on the acquisition and development of oil and gas properties primarily located in the United States. Empire Petroleum seeks to enhance its production capabilities and expand its asset base through strategic acquisitions and efficient resource management.
How the Company Makes MoneyEmpire Petroleum makes money primarily through the sale of crude oil and natural gas produced from its properties. The company generates revenue by extracting these resources, which are then sold on the open market or through long-term contracts to refiners, marketers, and other purchasers. Empire Petroleum's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiency. Strategic partnerships and acquisitions also play a role in enhancing its revenue potential by increasing its resource base and optimizing production processes.

Empire Petroleum Financial Statement Overview

Summary
Empire Petroleum faces significant financial challenges. The company is struggling with profitability as indicated by negative net income and EBIT margins. While the balance sheet shows a manageable level of debt, the negative return on equity and reliance on external financing highlight potential risks. Cash flow difficulties further underscore the need for strategic adjustments to improve financial health and sustainability.
Income Statement
45
Neutral
Empire Petroleum's income statement reveals some challenges. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 25.1%, which is reasonable. However, both EBIT and net profit margins are negative due to substantial operating losses, indicating profitability issues. The revenue growth rate shows a declining trend, with an 11.2% decrease from 2022 to 2023, and a further decline in TTM compared to 2024, signaling challenges in maintaining revenue growth.
Balance Sheet
50
Neutral
The balance sheet shows a moderately high debt-to-equity ratio of 0.21 in the TTM period, reflecting some leverage but not excessively high. The equity ratio stands at 47.8%, indicating a stable proportion of equity in the capital structure. However, the return on equity is negative due to net losses, suggesting inefficiencies in generating returns from shareholder investments.
Cash Flow
40
Negative
Empire Petroleum's cash flow statement highlights concerns with negative free cash flow in the TTM period, evidencing cash outflows exceeding operational cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Financing activities have provided substantial cash inflow, indicating reliance on external financing to support operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.41M44.04M40.14M53.27M27.68M5.99M
Gross Profit3.23M40.27M5.38M23.80M9.79M2.52M
EBITDA-4.43M-4.89M-8.08M10.02M-6.16M-12.27M
Net Income-16.44M-16.20M-12.47M7.08M-18.61M-16.84M
Balance Sheet
Total Assets123.68M123.87M92.62M71.55M50.09M11.25M
Cash, Cash Equivalents and Short-Term Investments1.08M2.25M7.79M11.94M3.61M157.69K
Total Debt12.69M11.88M6.68M8.00M9.44M9.65M
Total Liabilities64.61M61.10M57.66M48.31M39.26M29.69M
Stockholders Equity59.08M62.77M34.96M23.24M10.83M-18.44M
Cash Flow
Free Cash Flow-32.68M-47.71M-26.88M4.61M-16.74M-2.24M
Operating Cash Flow3.86M6.16M-9.89M18.06M3.17M-1.72M
Investing Cash Flow-39.53M-53.87M-14.77M-11.41M-24.72M856.29K
Financing Cash Flow33.26M42.17M20.50M1.69M25.00M1.02M

Empire Petroleum Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.65
Price Trends
50DMA
4.85
Positive
100DMA
5.44
Positive
200DMA
5.72
Negative
Market Momentum
MACD
0.17
Positive
RSI
57.37
Neutral
STOCH
76.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EP, the sentiment is Positive. The current price of 5.65 is above the 20-day moving average (MA) of 5.50, above the 50-day MA of 4.85, and below the 200-day MA of 5.72, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EP.

Empire Petroleum Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BRBRY
70
Neutral
$232.79M9.56-5.66%4.00%-31.28%-1265.13%
REREI
69
Neutral
$160.88M2.208.52%-4.51%-10.09%
68
Neutral
$14.94B9.816.34%5.24%4.13%-66.99%
EPEPM
56
Neutral
$164.68M89.30-1.24%10.00%3.79%-131.01%
WTWTI
54
Neutral
$253.96M203.83%2.26%-5.05%-383.38%
EPEP
51
Neutral
$193.55M-36.23%6.28%13.18%
GTGTE
51
Neutral
$172.41M21.67-4.07%-2.39%-425.29%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EP
Empire Petroleum
5.65
0.05
0.89%
EPM
Evolution Petroleum
4.91
0.17
3.59%
GTE
Gran Tierra Energy
4.91
-4.75
-49.17%
WTI
W&T Offshore
1.85
-0.33
-15.14%
REI
Ring Energy
0.78
-1.03
-56.91%
BRY
Berry Petroleum
3.33
-2.77
-45.41%

Empire Petroleum Corporate Events

Private Placements and Financing
Empire Petroleum Announces Registered Rights Offering
Neutral
Jun 30, 2025

Empire Petroleum Corporation announced a registered rights offering on June 30, 2025, with a record date set for July 10, 2025. The offering aims to raise up to $5.0 million, including $2.5 million from the exercise of warrants, by distributing subscription rights to existing common stockholders, allowing them to purchase additional shares and warrants.

Private Placements and Financing
Empire Petroleum Issues $4M Promissory Note
Neutral
Jun 23, 2025

On June 17, 2025, Empire Petroleum Corporation issued a Promissory Note for $4,000,000 to Phil E. Mulacek, with an initial advance of $2,000,000. The note matures on June 17, 2027, with an interest rate of 5.5% per annum, increasing to 9% after maturity. The company can request additional advances and has provisions for repayment upon equity sales.

Executive/Board ChangesShareholder Meetings
Empire Petroleum Holds Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 12, 2025, Empire Petroleum Corporation held its Annual Meeting of Stockholders, where 87.15% of outstanding shares were represented. Stockholders elected three directors, approved executive compensation, and ratified Grant Thornton LLP as the independent accounting firm for 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025