Empire Petroleum (EP) AI Stock Analysis

• Market Cap: $104.57M
• Dividend Yield: N/A
• Average Volume (3M): 40.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -15.13%
• EPS Growth: 17.34%
• Country: US
• Employees: 63
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.11
• Shares Outstanding: 34,855,800
• 10 Day Avg. Volume: 38,094
• 30 Day Avg. Volume: 40,530
• PEG Ratio: 7.76
• Price to Book (P/B): 3.64
• Price to Sales (P/S): 5.19
• P/FCF Ratio: -4.79
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: -32.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $3.00 ▲(0.00% Upside)

Empire Petroleum's overall stock score is significantly impacted by its poor financial performance, characterized by declining revenues and negative profitability. The technical analysis indicates a bearish trend, further weighing on the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Positive Factors

Operational Flexibility

By preparing drilled-but-uncompleted wells, Empire can quickly adapt to favorable market conditions, enhancing its ability to capitalize on future opportunities and improve its production efficiency.

Natural Gas Market Positioning

With rising demand and prices for natural gas, Empire's strategic focus on this segment positions it well for future revenue growth and diversification of its energy portfolio.

Production Volume Growth

The increase in production volumes indicates improved operational efficiency and potential for revenue growth, reflecting Empire's ability to enhance its output in a competitive market.

Negative Factors

Declining Revenue

The significant decline in revenue year-over-year highlights ongoing financial challenges and pressures on Empire's ability to maintain its market position and profitability.

Negative Profitability

Persistent negative profitability undermines financial stability and limits the company's ability to reinvest in growth opportunities, posing a risk to long-term viability.

Weak Cash Flow Generation

Poor cash flow generation limits Empire's financial flexibility and ability to fund operations and strategic initiatives, potentially impacting its capacity to weather market volatility.

Empire Petroleum Business Overview & Revenue Model

Company Description

Empire Petroleum Corporation engages in the exploration and development of oil and gas interests in Louisiana, New Mexico, North Dakota, Montana, and Texas. The company was formerly known as Americomm Resources Corporation and changed its name to Empire Petroleum Corporation in August 2001. Empire Petroleum Corporation was incorporated in 1983 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Empire Petroleum generates revenue through the sale of crude oil and natural gas produced from its owned and operated properties. The company's primary revenue streams include the direct sale of hydrocarbons to refiners and other end-users, as well as through contracts with midstream companies for transportation and processing services. Additionally, EP may earn revenue from royalties and lease payments associated with its land holdings. Strategic partnerships with other energy firms and service providers also contribute to its financial performance, enabling the company to leverage shared resources and expertise in exploration and production activities.

Empire Petroleum Financial Statement Overview

Summary

Empire Petroleum faces considerable financial challenges, with declining revenues, negative profitability, and weak cash flow generation. While the debt level is relatively moderate, the company struggles with operational inefficiencies and cash flow issues, posing risks to financial stability.

Income Statement

Empire Petroleum's income statement reveals significant challenges, with negative net profit margins and declining revenue growth. The TTM data shows a gross profit margin of 23.7%, but a concerning net profit margin of -44.2%, indicating substantial losses. Revenue has decreased by 3.92% in the TTM period, reflecting operational difficulties in a volatile industry.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.28, suggesting manageable leverage. However, the return on equity is negative at -30.1%, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 43.6%, providing some stability in asset financing.

Cash Flow

Cash flow analysis highlights significant issues, with negative free cash flow growth of -29.6% in the TTM period. The operating cash flow to net income ratio is low at 0.10, and the free cash flow to net income ratio is -8.21, indicating poor cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.23M	44.04M	40.14M	53.27M	27.68M	5.99M
Gross Profit	17.74M	3.47M	5.38M	23.80M	9.79M	2.52M
EBITDA	-5.03M	-4.89M	-8.08M	10.02M	-7.37M	-13.17M
Net Income	-17.31M	-16.20M	-12.47M	7.08M	-18.61M	-16.84M
Balance Sheet
Total Assets	122.99M	123.87M	92.62M	71.55M	50.09M	11.25M
Cash, Cash Equivalents and Short-Term Investments	4.60M	2.25M	7.79M	11.94M	3.61M	157.69K
Total Debt	16.35M	11.88M	6.68M	8.00M	9.44M	9.65M
Total Liabilities	69.33M	61.10M	57.66M	48.31M	40.26M	29.69M
Stockholders Equity	53.66M	62.77M	34.96M	23.24M	9.83M	-18.44M
Cash Flow
Free Cash Flow	-15.16M	-47.71M	-26.88M	4.61M	-16.74M	-2.24M
Operating Cash Flow	-9.96M	6.16M	-9.89M	18.06M	3.17M	-1.72M
Investing Cash Flow	-7.98M	-53.87M	-14.77M	-11.41M	-24.72M	856.29K
Financing Cash Flow	19.39M	42.17M	20.50M	1.69M	25.00M	1.02M

Empire Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EP, the sentiment is Negative. The current price of 3 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.68, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EP.

Empire Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPSN	72 Outperform	$105.04M	17.94	5.92%	5.25%	46.76%	11.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
REI	57 Neutral	$183.04M	―	-1.91%	―	-15.44%	-113.21%
GTE	54 Neutral	$136.59M	-1.57	-21.91%	―	-1.58%	-271.90%
AMPY	53 Neutral	$214.52M	―	-6.90%	―	-9.46%	-144.89%
EPM	50 Neutral	$133.91M	―	-0.19%	11.06%	-2.23%	-104.00%
EP	41 Neutral	$104.57M	―	-31.43%	―	-15.13%	17.34%

Empire Petroleum Corporate Events

Empire Petroleum Amends Promissory Note Terms

Empire Petroleum Corporation, on September 24, 2025, issued a Promissory Note for $4,000,000 to Phil E. Mulacek, with a due date of September 23, 2027, and an interest rate of 5.5% per annum. On November 5, 2025, the company amended the terms of this Note and an associated Warrant through a Letter Agreement, altering the conversion price, warrant shares, and other terms, potentially impacting the company’s financial flexibility and shareholder equity.

The most recent analyst rating on (EP) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Empire Petroleum stock, see the EP Stock Forecast page.

Empire Petroleum Issues $4M Promissory Note

On September 24, 2025, Empire Petroleum Corporation issued a $4,000,000 promissory note to Phil E. Mulacek, with $2,000,000 already advanced. The funds will support the company’s ongoing oil and gas drilling program and working capital. The note matures on September 23, 2027, with interest accruing at 5.5% per annum, and includes options for conversion into common stock and prepayment without penalty.

The most recent analyst rating on (EP) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Empire Petroleum stock, see the EP Stock Forecast page.

Empire Petroleum Completes Successful Rights Offering

On August 21, 2025, Empire Petroleum announced the successful full subscription of its rights offering, which expired on August 20, 2025. The offering generated approximately $2.5 million in gross proceeds, with the potential for an additional $2.5 million from future warrant exercises. The company’s chairman, Phil E. Mulacek, fully subscribed to his rights and oversubscription privileges, highlighting strong insider confidence. This financial maneuver strengthens Empire’s position in the oil and gas sector, potentially enhancing its growth and acquisition strategies.

The most recent analyst rating on (EP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Empire Petroleum stock, see the EP Stock Forecast page.

Empire Petroleum Extends Rights Offering Expiration Date

On August 19, 2025, Empire Petroleum Corporation announced the extension of the expiration date for its $5.0 million rights offering, which includes $2.5 million from the exercise of warrants. This extension, now set to expire on August 20, 2025, allows stockholders more time to finalize documentation and finances. The rights offering is part of Empire’s strategy to raise capital, and significant shareholder Phil E. Mulacek has expressed his intent to fully participate, indicating confidence in the company’s direction. This move could potentially strengthen Empire’s financial position and enhance its market operations.

The most recent analyst rating on (EP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Empire Petroleum stock, see the EP Stock Forecast page.