Empire Petroleum (EP) AI Stock Analysis

• Market Cap: $101.64M
• Dividend Yield: N/A
• Average Volume (3M): 36.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -10.49%
• EPS Growth: 17.74%
• Country: US
• Employees: 63
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.15
• Shares Outstanding: 33,766,388
• 10 Day Avg. Volume: 33,371
• 30 Day Avg. Volume: 36,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 21.12
• Enterprise Value/Ebitda: -38.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $3.00 ▼(-19.35% Downside)

Empire Petroleum's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are significant concerns. Technical analysis further indicates a downtrend with oversold conditions. Valuation metrics are unattractive due to the negative P/E ratio and lack of dividends.

Empire Petroleum Business Overview & Revenue Model

Company Description

Empire Petroleum (EP) is a dynamic player in the energy sector, primarily focused on the exploration, production, and distribution of oil and natural gas. With operations spanning across various regions, EP is dedicated to delivering high-quality energy products while adhering to sustainable practices. The company offers a range of services including drilling, refining, and logistics, ensuring a comprehensive approach to energy supply and management.

How the Company Makes Money

Empire Petroleum generates revenue through multiple streams, primarily from the sale of crude oil and natural gas. The company engages in exploration and production activities, extracting hydrocarbons from various fields, and selling them in domestic and international markets. Additionally, EP earns income from refining operations, turning crude oil into valuable products like gasoline and diesel. The company may also have significant partnerships with other energy producers and distributors, enhancing its market reach and operational efficiency. Furthermore, Empire Petroleum could potentially benefit from long-term contracts and hedging strategies that stabilize cash flow and mitigate price volatility in the energy market.

Empire Petroleum Financial Statement Overview

Summary

Empire Petroleum faces substantial financial challenges, particularly in profitability and cash flow generation. While the balance sheet shows manageable leverage, the company's negative profitability and cash flow metrics highlight operational inefficiencies and financial instability. Strategic improvements are necessary to enhance financial performance and shareholder value.

Income Statement

Empire Petroleum's income statement reflects significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -9.45% in the TTM period. Profitability metrics are concerning, with a negative net profit margin of -44.15% and negative EBIT and EBITDA margins, indicating operational inefficiencies. The gross profit margin has improved to 23.70% in the TTM, but overall profitability remains weak.

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 -29.39%, indicating that the company is not generating returns for shareholders. The equity ratio stands at 43.74%, reflecting a reasonable proportion of equity financing. Overall, the balance sheet is stable but lacks strong profitability.

Cash Flow

Cash flow analysis reveals significant issues, with a negative free cash flow growth rate of -36.51% in the TTM. The operating cash flow to net income ratio is low at 0.10, and the free cash flow to net income ratio is highly negative, indicating cash flow challenges. The company needs to improve its cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.75M	44.04M	40.14M	53.27M	27.68M	5.99M
Gross Profit	9.18M	3.47M	5.38M	23.80M	9.79M	2.52M
EBITDA	-5.08M	-4.89M	-8.08M	10.02M	-7.37M	-12.27M
Net Income	-17.11M	-16.20M	-12.47M	7.08M	-18.61M	-16.84M
Balance Sheet
Total Assets	124.66M	123.87M	92.62M	71.55M	50.09M	11.25M
Cash, Cash Equivalents and Short-Term Investments	2.29M	2.25M	7.79M	11.94M	3.61M	157.69K
Total Debt	15.50M	11.88M	6.68M	8.00M	9.44M	9.65M
Total Liabilities	70.15M	61.10M	57.66M	48.31M	39.26M	29.69M
Stockholders Equity	54.51M	62.77M	34.96M	23.24M	9.83M	-18.44M
Cash Flow
Free Cash Flow	-20.75M	-47.71M	-26.88M	4.61M	-16.74M	-2.24M
Operating Cash Flow	2.53M	6.16M	-9.89M	18.06M	3.17M	-1.72M
Investing Cash Flow	-26.57M	-53.87M	-14.77M	-11.41M	-24.72M	856.29K
Financing Cash Flow	17.08M	42.17M	20.50M	1.69M	25.00M	1.02M

Empire Petroleum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.72 is above the 20-day moving average (MA) of 3.72, below the 50-day MA of 4.24, and below the 200-day MA of 5.11, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 32.29 is Neutral, neither overbought nor oversold. The STOCH value of 5.12 is Positive, 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
REI	―	$197.23M	2.79	8.08%	―	-13.66%	-4.85%
EPSN	―	$105.88M	20.56	5.18%	5.21%	45.90%	-2.29%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	―	$150.49M	131.93	1.50%	10.96%	-0.04%	-71.98%
AMPY	―	$183.72M	12.32	3.66%	―	-10.36%	-43.83%
GTE	―	$121.05M	-1.39	-21.91%	―	-1.58%	-271.90%
EP	―	$101.64M	―	-30.24%	―	-10.49%	17.74%

Empire Petroleum Corporate Events

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.

Empire Petroleum Wins Favorable Ruling for Oil Project

On August 15, 2025, Empire Petroleum announced a unanimous and favorable ruling from the New Mexico Oil Conservation Commission regarding its rights to the Residual Oil Zone in the Eunice Monument South Unit in Lea County, New Mexico. This decision allows Empire to proceed with a CO2 enhanced oil recovery pilot project and denies several applications from Goodnight Midstream Permian, LLC, reinforcing Empire’s position in New Mexico and paving the way for sustained production and asset protection.