Empire Petroleum Corporation announced that it has extended the maturity of its $20 million revolving credit facility with Equity Bank to December 29, 2028, under the third amendment to the agreement. The extension was disclosed on January 6, 2026 and keeps the maximum commitment unchanged at $20 million.
The facility carries a prime‑plus 1.50% interest rate with an 8.50% floor, and Empire paid an extension fee of $50,550. While the total commitment remains $20 million, scheduled monthly reductions to the available credit begin on December 31, 2024, so the company will gradually see a smaller drawdown window over the life of the facility.
Empire Petroleum’s balance sheet remains under pressure. The company has a negative operating margin of –43.87 % and a net margin of –46.5 %, a current ratio of 0.63, and an Altman Z‑Score of –0.36, all indicating liquidity and solvency concerns. In addition to the revolving facility, the company has a related‑party term loan from PIE totaling approximately $1.4 million. The extension therefore provides a critical liquidity buffer amid these financial headwinds.
The company’s production portfolio spans North Dakota, New Mexico, Texas, Montana, and Louisiana. The extended credit line is intended to support ongoing asset optimization and potential acquisitions in these states, allowing Empire to pursue growth opportunities while maintaining operational flexibility.
CEO Mike Morrisett highlighted the strong relationship with Equity Bank and the lender’s confidence in Empire’s strategy. He noted that the extension is essential for the company’s planned growth initiatives and underscores the importance of maintaining robust banking relationships during a period of financial strain.
While no specific market reaction data is available, the extension signals continued banking support for Empire Petroleum despite its challenging financial metrics, reinforcing the company’s ability to access capital for strategic initiatives.
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