Empire Petroleum reported third‑quarter 2025 results that saw total product revenue fall 31.6% to $9.4 million, a decline driven by lower oil prices and a 15% drop in oil volumes. The company posted a net loss of $3.8 million, slightly wider than the $3.6 million loss in the same quarter last year, but adjusted EBITDA turned positive at $0.1 million, up from a negative $0.1 million in Q3 2024. The turnaround in adjusted EBITDA reflects tighter operating costs and a higher mix of higher‑margin natural‑gas sales.
Production for the quarter averaged 2,398 barrels of oil equivalent per day, comprising 1,566 barrels of oil, 456 barrels of NGLs, and 2,257 thousand cubic feet of natural gas—equivalent to 376 barrels of oil equivalent. The gas volume contributed to a 90.5% increase in natural‑gas revenue, which rose to $0.221 million, thanks to higher realized gas prices. The decline in oil revenue, however, offset the gas upside and left total revenue down year‑over‑year.
Operational highlights included progress in the North Dakota enhanced‑oil‑recovery program, where modified wellhead installations were completed as part of the Starbuck drilling program. The company also launched a new drilling program in Texas, but management indicated that, due to current commodity prices, drilling activities will be strategically paced and are expected to begin in 2026. Production in New Mexico continued, and a regulatory win on August 14 secured the company’s exclusive rights to produce from the Residual Oil Zone in the Eunice Monument South Unit, paving the way for a CO₂‑enhanced‑oil‑recovery pilot.
Capital spending for the nine months ended September 30 totaled $4.2 million, focused on completing the Starbuck program and returning Texas wells to production. In August, Empire completed a subscription rights offering that raised $2.5 million in gross proceeds, a portion of which was earmarked for paying down a promissory note and bolstering liquidity for future development.
Phil Mulacek, chairman, said the company is “executing with precision and discipline” and remains focused on operational excellence, capital efficiency, and strategic development sequencing. He emphasized that the company’s disciplined capital allocation and ongoing operational improvements position it for growth in 2026, contingent on commodity price recovery and successful execution of its development programs.
The results underscore Empire’s sensitivity to oil price volatility, as the revenue decline was largely driven by lower oil prices and volumes. The positive adjusted EBITDA signals improving operational efficiency, but the persistent net loss highlights the need for continued cost discipline and a favorable commodity environment. The company’s strategic focus on North Dakota EOR, Texas drilling, and the New Mexico regulatory win represent tailwinds that could enhance future production and margins, while the delayed start of the Texas program reflects a cautious approach to capital deployment amid uncertain market conditions.
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