Empire Petroleum (EP) AI Stock Analysis

Top Page

Empire Petroleum

(NYSE MKT:EP)

Select Model

Rating:49Neutral

Price Target:$2.50▼(-5.30% Downside)

Action:upgraded

Date:10/13/26

The overall score is constrained by Empire Petroleum's weak financial foundation, marked by deep net losses, negative cash flow, and high leverage. The recent capital raise, while necessary, introduces dilution risk. These fundamental concerns are partially offset by strong short-term technical momentum, with the stock price surging above key moving averages, suggesting positive market sentiment or speculative interest.

Positive Factors

Integrated oil and gas operationsEP combines upstream production with supporting infrastructure and exposure to multiple hydrocarbon products. This operating model can provide broader revenue participation and asset-level flexibility than a single-product producer, supporting continued development and optimization over the next several quarters.

Negative Factors

Severe and persistent lossesRevenue growth is currently overwhelmed by operating costs, non-cash charges, or other expenses, leaving EP without a sustainable profit engine. Continued losses reduce internally generated capital, make reinvestment more difficult, and increase dependence on external financing to support operations.

Empire Petroleum (EP) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $109.83M
Dividend Yield: ―
Average Volume (3M): 39.29K
Price to Earnings (P/E): -1.3
Beta (1Y): 0.88
Revenue Growth: -9.01%
EPS Growth: -293.99%
Country: US
Employees: 61
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

Empire Petroleum Business Overview & Revenue Model

Company Description

Empire Petroleum Corporation, an entity established in 1983, primarily focuses on discovering and extracting petroleum and natural gas reserves across several U.S. states, including Louisiana, New Mexico, North Dakota, Montana, and Texas. Headquarter...

How the Company Makes Money

EP primarily makes money by producing and selling hydrocarbons—crude oil, natural gas, and natural gas liquids—from its oil and gas properties. Revenue is generally generated when produced volumes are sold to purchasers (e.g., marketers, refiners, or...

Empire Petroleum Financial Statement Overview

Summary

Financial health is weak. Persistent net losses (-$71.3M TTM), negative operating cash flow (-$6.1M), and a high debt-to-equity ratio of 2.2 indicate significant risk. While gross margin improved to 39.8%, the bottom line remains deeply negative, and equity is thin.

Income Statement

12Very Negative

Balance Sheet

13Very Negative

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Mar 2023	Dec 2021
Income Statement
Total Revenue	35.26M	34.20M	44.04M	40.14M	53.27M	27.68M
Gross Profit	7.97M	-6.61M	3.47M	5.38M	23.80M	9.79M
EBITDA	-59.09M	-57.32M	-4.89M	-8.50M	10.02M	-7.37M
Net Income	-71.30M	-72.07M	-16.20M	-12.47M	7.08M	-18.61M
Balance Sheet
Total Assets	81.08M	65.87M	123.87M	92.62M	71.55M	50.09M
Cash, Cash Equivalents and Short-Term Investments	3.12M	1.19M	2.25M	7.79M	11.94M	3.61M
Total Debt	16.04M	15.35M	11.88M	6.68M	8.00M	9.44M
Total Liabilities	73.76M	70.48M	61.10M	57.66M	48.31M	40.26M
Stockholders Equity	7.32M	-4.61M	62.77M	34.96M	23.24M	9.83M
Cash Flow
Free Cash Flow	-5.82M	-4.00M	-47.71M	-26.88M	4.88M	-16.60M
Operating Cash Flow	-6.14M	-3.95M	6.16M	-9.89M	18.06M	3.17M
Investing Cash Flow	-5.38M	-4.61M	-53.87M	-14.77M	-11.41M	-24.72M
Financing Cash Flow	12.36M	7.50M	42.17M	20.50M	1.69M	25.00M

Empire Petroleum Technical Analysis

Technical Analysis SentimentNegative

Last Price2.64

Price Trends

50DMA2.83Negative

100DMA2.76Negative

200DMA2.85Negative

Market Momentum

MACD0.04Positive

RSI39.40Neutral

STOCH2.08Positive

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 2.64 is below the 20-day moving average (MA) of 3.06, below the 50-day MA of 2.83, and below the 200-day MA of 2.85, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 2.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EP.

Empire Petroleum Risk Analysis

Empire Petroleum disclosed 33 risk factors in its most recent earnings report. Empire Petroleum reported the most risks in the "Finance & Corporate" category.

Finance & Corporate17
Tech & Innovation1
Legal & Regulatory3
Production10
Ability to Sell1
Macro & Political1

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

2 New Risks

1.The loss or unavailability of capital provided by our two largest stockholders could have a material adverse effect on our business.Q4, 2023

2.We have had material weaknesses in our internal control over financial reporting in prior fiscal years. Failure to maintain effective internal control over financial reporting could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis. As a result, our business, operating results and liquidity could be harmed.Q4, 2023

Empire Petroleum Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

EP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRT	76Outperform	$62.50M	6.67	491.22%	14.85%	63.47%	70.01%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPSN	64Neutral	$195.63M	-32.98	-2.92%	3.87%	53.71%	-204.13%
SJT	61Neutral	$153.34M	-195.83	-37.43%	―	-97.54%	-380.00%
EPM	57Neutral	$154.45M	-51.21	-3.80%	12.63%	0.59%	-345.77%
EP	49Neutral	$109.83M	-1.28	-474.82%	―	-9.01%	-293.99%

* Energy Sector Average

Performance Comparison

EP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
EP	Empire Petroleum Corporation	2.64	-0.41	-13.39%
EPM	Evolution Petroleum	3.80	-0.13	-3.38%
SJT	San Juan Basin Royalty	3.29	-2.49	-43.08%
NRT	North European Oil Royalty	6.80	1.37	25.23%
EPSN	Epsilon Energy Ltd.	6.46	1.80	38.72%
GLND	Greenland Energy Company	3.09	-7.02	-69.44%

Empire Petroleum Corporate Events

Business Operations and StrategyPrivate Placements and Financing

Empire Petroleum Raises Capital via Convertible Promissory Note

Positive

Sep 16, 2026

On September 10, 2026, Empire Petroleum Corporation issued a $3.25 million promissory note to Petroleum Independent & Exploration, LLC, with proceeds earmarked for general working capital. The note carries a 6% annual interest rate until its Marc...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 13, 2026

Empire Petroleum AI Stock Analysis

Top Page