Empire Petroleum (EP) AI Stock Analysis

• Market Cap: $165.90M
• Dividend Yield: N/A
• Average Volume (3M): 28.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 6.28%
• EPS Growth: 13.18%
• Country: US
• Employees: 63
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.13
• Shares Outstanding: 33,719,727
• 10 Day Avg. Volume: 30,045
• 30 Day Avg. Volume: 28,599
• PEG Ratio: -1.50
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.12
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 13.62
• Enterprise Value/Ebitda: -7.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $4.00 ▼(-18.70%Downside)

Empire Petroleum's overall stock score reflects its financial struggles and weak technical indicators. The company's negative profitability, cash flow challenges, and declining revenue growth weigh heavily on its financial performance. Additionally, technical indicators depict bearish momentum, with the stock trading below key moving averages. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield, further impacting the score.

Empire Petroleum Business Overview & Revenue Model

Company Description

Empire Petroleum Corporation engages in the exploration and development of oil and gas interests in Louisiana, New Mexico, North Dakota, Montana, and Texas. The company was formerly known as Americomm Resources Corporation and changed its name to Empire Petroleum Corporation in August 2001. Empire Petroleum Corporation was incorporated in 1983 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Empire Petroleum makes money through the sale of crude oil and natural gas extracted from its operated properties. The company's primary revenue streams are generated from the sale of these hydrocarbons to refineries, marketers, and other buyers in the energy sector. Empire Petroleum also benefits from strategic acquisitions of undervalued or underperforming oil and gas properties, which are then optimized for increased production and profitability. The company may also engage in joint ventures and partnerships to leverage additional expertise and resources, enhancing its operational capabilities and revenue potential.

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
42.80M	44.04M	40.14M	53.27M	28.49M	5.99M
	Gross Profit
10.73M	40.27M	5.38M	23.80M	23.89M	2.52M
	EBIT
-13.22M	-13.67M	-11.63M	8.78M	522.04K	-10.65M
	EBITDA
-3.57M	-4.89M	-8.08M	13.03M	-6.16M	-12.27M
	Net Income Common Stockholders
-16.44M	-16.20M	-12.47M	7.08M	-27.62M	-17.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08M	2.25M	7.79M	11.94M	3.61M	157.69K
	Total Assets
123.68M	123.87M	92.62M	71.55M	50.09M	11.25M
	Total Debt
12.69M	11.88M	6.68M	8.00M	9.44M	9.65M
	Net Debt
11.61M	9.63M	-1.11M	-3.94M	5.83M	9.49M
	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: Neutral
• Last Price: 4.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EP, the sentiment is Neutral. The current price of 4.92 is above the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.95, and below the 200-day MA of 5.69, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EP.

Empire Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRY	69 Neutral	$185.45M	9.56	-5.66%	10.88%	-31.28%	-1265.13%
Sector *	57 Neutral	$7.07B	2.93	-3.47%	5.75%	0.66%	-50.70%
WTI	55 Neutral	$218.52M	―	203.83%	2.70%	-5.05%	-383.38%
EPM	54 Neutral	$156.79M	89.30	-1.24%	10.69%	3.79%	-131.01%
REI	50 Neutral	$152.33M	2.08	8.52%	―	-4.51%	-10.09%
GTE	49 Neutral	$168.52M	21.67	-4.07%	―	-2.39%	-425.29%
EP	42 Neutral	$165.90M	―	-36.23%	―	6.28%	13.18%

Empire Petroleum Corporate Events

Empire Petroleum Boosts Loan Agreement with Equity Bank

Empire Petroleum Corporation’s subsidiaries, Empire North Dakota and Empire ND Acquisition, have amended their Revolver Loan Agreement with Equity Bank, increasing the commitment amount to $20 million and monthly reductions to $250,000. This strategic financial move, announced in a press release, underscores the company’s growth and financial flexibility, appealing to investors interested in dynamic market strategies.