EP · CIK 887396
What Empire Petroleum Corp. told the SEC could break it.
Empire Petroleum's disclosures stack several acute exposures common to a small, stretched oil-and-gas producer. Its revenue is entirely tied to volatile oil, natural gas, and NGL prices — realized NGL prices fell about 24% in 2025 and New Mexico gas briefly went negative in 2024 — and its offtake is concentrated, with 66% of 2025 oil, gas, and NGL revenue going to just three purchasers (78% to four in 2024), so losing one could interrupt sales. The balance sheet adds strain: it ended 2025 with negative working capital of $16.2 million (expected to persist) and only about $2.5 million available, with a Credit Facility default able to accelerate its borrowings. All of its proved reserves sit in five states — New Mexico, North Dakota, Montana, Texas, and Louisiana — concentrating regional takeaway and regulatory risk.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- oil/natural gas/NGL price exposure (volatile realized prices; NM gas went negative in 2024)high
Empire's revenue is fully tied to volatile oil, natural gas and NGL prices — realized NGL prices fell ~24% and New Mexico gas dropped below zero in 3Q 2024 as deductions exceeded prices — so commodity-price swings directly drive results (it hedged ~90% of remaining 2026 oil at $72.26).
“Realized NGLs prices for 2025 were approximately $10.76 per barrel, while realized prices for the prior year were approximately $14.21 per barrel, a decrease in price of approximately 24% primarily due to a general decline in overall market prices.”
SEC filing →As of 2026
Customer concentration
- 66% of oil/gas/NGL revenues to three purchasers (78% to four in 2024)high
Empire sold 66% of its oil, natural gas and NGL revenues to just three purchasers in 2025 (78% to four in 2024), concentrating offtake and exposing it to substantial sales interruptions if a purchaser is lost.
“For 2025, 66% of revenues from oil, natural gas, and NGLs sales were to three customers. For 2024, 78% of revenues from oil, natural gas, and NGLs sales were to four customers. No other purchaser accounted for more than 10% of our total revenues during the respective periods.”
SEC filing →As of 2026
Liquidity & debt
- negative working capital ($16.2M) and Credit Facility default/acceleration exposurehigh
Empire had negative working capital of $16.2M at year-end 2025 (expected to persist) with only ~$2.5M available, and a default under its Credit Facility could accelerate borrowings — pressuring its ability to fund payables and debt service.
“025, we had a negative working capital of $16.2 million which is expected to continue in the near future.”
SEC filing →As of 2026
Geographic concentration
- all proved reserves in New Mexico, North Dakota, Montana, Texas and Louisianamedium
All of Empire's estimated proved reserves and producing properties are in New Mexico, North Dakota, Montana, Texas and Louisiana, exposing it to regional supply/demand, takeaway-capacity, weather, water-shortage and field-specific regulatory risks.
“Our producing properties are geographically concentrated in New Mexico, North Dakota, Montana, Texas, and Louisiana. At December 31, 2025, all of our total estimated proved reserves were attributable to properties located in these areas.”
SEC filing →As of 2026
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