Empire Petroleum (EP) AI Stock Analysis

• Market Cap: $193.55M
• Dividend Yield: N/A
• Average Volume (3M): 25.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 6.28%
• EPS Growth: 13.18%
• Country: US
• Employees: 63
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.13
• Shares Outstanding: 33,719,727
• 10 Day Avg. Volume: 32,914
• 30 Day Avg. Volume: 25,583
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.50
• Enterprise Value/Market Cap: 0.06
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: -0.46
• 1Y Price Target: $5.50
• Price Target Upside: -2.65% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• 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 Business Overview & Revenue Model

Company Description

Empire 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 Money

Empire 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.41M	44.04M	40.14M	53.27M	27.68M	5.99M
Gross Profit	3.23M	40.27M	5.38M	23.80M	9.79M	2.52M
EBITDA	-4.43M	-4.89M	-8.08M	10.02M	-6.16M	-12.27M
Net Income	-16.44M	-16.20M	-12.47M	7.08M	-18.61M	-16.84M
Balance Sheet
Total Assets	123.68M	123.87M	92.62M	71.55M	50.09M	11.25M
Cash, Cash Equivalents and Short-Term Investments	1.08M	2.25M	7.79M	11.94M	3.61M	157.69K
Total Debt	12.69M	11.88M	6.68M	8.00M	9.44M	9.65M
Total Liabilities	64.61M	61.10M	57.66M	48.31M	39.26M	29.69M
Stockholders Equity	59.08M	62.77M	34.96M	23.24M	10.83M	-18.44M
Cash Flow
Free Cash Flow	-32.68M	-47.71M	-26.88M	4.61M	-16.74M	-2.24M
Operating Cash Flow	3.86M	6.16M	-9.89M	18.06M	3.17M	-1.72M
Investing Cash Flow	-39.53M	-53.87M	-14.77M	-11.41M	-24.72M	856.29K
Financing Cash Flow	33.26M	42.17M	20.50M	1.69M	25.00M	1.02M

Empire Petroleum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRY	70 Neutral	$232.79M	9.56	-5.66%	4.00%	-31.28%	-1265.13%
REI	69 Neutral	$160.88M	2.20	8.52%	―	-4.51%	-10.09%
Sector *	68 Neutral	$14.94B	9.81	6.34%	5.24%	4.13%	-66.99%
EPM	56 Neutral	$164.68M	89.30	-1.24%	10.00%	3.79%	-131.01%
WTI	54 Neutral	$253.96M	―	203.83%	2.26%	-5.05%	-383.38%
EP	51 Neutral	$193.55M	―	-36.23%	―	6.28%	13.18%
GTE	51 Neutral	$172.41M	21.67	-4.07%	―	-2.39%	-425.29%

Empire Petroleum Corporate Events

Empire Petroleum Announces Registered Rights Offering

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.

Empire Petroleum Issues $4M Promissory Note

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.

Empire Petroleum Holds Annual Stockholders Meeting

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.