Empire Petroleum Corp

## Capital Structure and Liquidity EMPIRE PETROLEUM CORP has a market capitalization of $98.65 million and a price-to-book ratio of 26.74, indicating a premium valuation relative to its book value. The company's liquidity position is high, with a current ratio of 0.59, suggesting that current liabilities exceed current assets. The company has $8.79 million in cash and equivalents, but its operating cash flow is negative at -$0.97 million, indicating cash outflows from operations.

## Profitability and Returns The company reported a net loss of -$6.64 million for Q1 2026, with an operating loss of -$5.58 million. Return on equity is -1.80%, and return on assets is -0.085%, indicating poor profitability relative to its equity and asset base. The company's debt-to-equity ratio is 0.26, suggesting a relatively low level of leverage compared to industry norms.

## Segments and Geographic Exposure EMPIRE PETROLEUM CORP operates as a single reportable segment, with no disclosed geographic revenue concentration. The company's operations are primarily focused on oil and natural gas production, with no significant diversification into other energy sources or international markets.

## Growth Trajectory The company's revenue for Q1 2026 is $5.10 million, but it has reported a net loss for the period. The company's growth trajectory is uncertain, with no clear indication of revenue growth in the near term. The company has undertaken capital expenditures of $1.17 million for oil and natural gas properties, but this has not translated into improved profitability.

## Risk Factors The company faces several risk factors, including a high liquidity risk due to current liabilities exceeding current assets. The risk assessment also flags dilution as a medium concern, with recent filings referencing potential dilution or offering risks. The company's financial statements include going-concern language, indicating substantial doubt about its ability to continue as a going concern.

## Recent Events Recent events include a March 2026 rights offering and a February 2026 rights offering, indicating the company's efforts to raise capital. The company has also issued convertible notes to related parties, which could lead to further dilution. The company's financial statements include disclosures about related-party transactions, including notes payable to Phil Mulacek and Energy Evolution Master Fund Ltd.

Empire Petroleum Corp (EP) is currently undergoing its first formal analysis, meaning there is no prior baseline to compute material changes or identify specific shifts in corporate activity. Consequently, no significant operational, financial, or strategic developments can be reported for this period, as the available data does not support assertions of change. The company’s current profile indicates a lack of external analyst coverage and index membership, with zero officers recorded in the current dataset. Despite this absence of traditional market visibility metrics, the entity maintains a shareholder base comprising 16 top holders, suggesting a concentrated ownership structure. Market attention for EP has been minimal over the recent 30-day window. Dispatch activity was virtually non-existent, with only a single dispatch recorded on July 3, 2026, and zero activity on all other days between June 24 and July 14, 2026. This low volume of communication underscores the limited current interest or news flow surrounding the ticker. Given the absence of material changes, watcher signals, or cross-source sentiment data, the significance of this snapshot lies in establishing a baseline for future monitoring. Investors should note that the current lack of analyst coverage and minimal dispatch activity may reflect the company's early stage in this specific analytical framework rather than a lack of underlying business activity.

Revenue grew 27.6% year-over-year in FY2025, indicating top-line expansion despite ongoing operational losses.

The company maintains a debt-to-equity ratio of 0.26, which is above the median for its peer cohort.

Credit risk is assessed as low, suggesting manageable default probabilities despite high liquidity concerns.

Net income deteriorated significantly to a $72.1 million loss in FY2025, reflecting severe profitability challenges.

High liquidity risk is flagged, compounded by a current ratio of only 0.34 as of late 2025.

Medium dilution risk exists, potentially eroding shareholder value as the company seeks capital to fund operations.

Revenue $5.1M; Operating income -$5.6M.

• ▍Revenue $5.1M
• ▍Operating income -$5.6M
• ▍Net margin -130.2%

Revenue $27.1M; Operating income -$12.4M.

• ▍Revenue $27.1M
• ▍Operating income -$12.4M
• ▍Net margin -48.3%

Revenue $17.8M; Operating income -$8.9M.

• ▍Revenue $17.8M
• ▍Operating income -$8.9M
• ▍Net margin -52.2%

Revenue $34.2M; Operating income -$71.3M.

• ▍Revenue $34.2M
• ▍Operating income -$71.3M
• ▍Net margin -210.7%

Revenue $43.7M; Operating income -$13.7M.

• ▍Revenue $43.7M
• ▍Operating income -$13.7M
• ▍Net margin -37.1%

Revenue $43.6M; Operating income -$13.7M.

• ▍Revenue $43.6M
• ▍Operating income -$13.7M
• ▍Net margin -37.1%

Revenue $40.1M; Operating income -$11.6M.

• ▍Revenue $40.1M
• ▍Operating income -$11.6M
• ▍Net margin -31.1%

Revenue $40.1M; Operating income -$11.6M.

• ▍Revenue $40.1M
• ▍Operating income -$11.6M
• ▍Net margin -31.1%