Empire Petroleum (EP) investor relations material

Executive summary

• Revenues increased year-over-year due to higher realized oil prices, partially offset by lower production volumes and significant derivative losses.

• Net loss narrowed to $1.9 million for Q2 2026 from $5.1 million in Q2 2025, and to $8.5 million for the six months ended June 30, 2026, from $9.3 million in the prior year.

• The company remains focused on optimizing and developing oil and gas properties, with ongoing cost reduction efforts and capital investments in core areas.

Financial highlights

• Q2 2026 total product revenues were $11.1 million, up from $8.7 million in Q2 2025; six-month revenues were $18.8 million, up from $17.7 million year-over-year.

• Net loss per share was $(0.05) for Q2 2026 and $(0.22) for the six months ended June 30, 2026.

• Lease operating expenses decreased due to lower production and cost controls, but workover expenses increased.

• Loss on derivatives totaled $1.6 million for Q2 and $4.2 million for the six months, reflecting adverse market movements.

• Cash flow from operations was negative, with $3.7 million used in operating activities for the six months ended June 30, 2026.

Outlook and guidance

• Management expects negative working capital to persist through 2026, with additional funding required to meet obligations.

• Related parties have committed to provide financial support as needed, and management is seeking further capital via debt or equity markets.

• Ongoing capital expenditures are planned for drilling and development in core areas, funded by a mix of debt, equity, and operating cash flow.