Empire Petroleum reported a narrowed second-quarter net loss as production increased, reflecting higher realized oil prices and continued cost controls.
The Denver-based independent oil and gas producer said output rose to 1,850 barrels of oil equivalent per day in Q2, up 8% from the prior quarter. The company attributed the gain to operational efficiencies and the addition of new wells in its core Permian Basin acreage.
Net loss for the quarter totaled $1.2 million, a 33% reduction from the $1.8 million loss recorded in Q1. Empire cited higher realized oil prices, which averaged $78.50 per barrel in Q2, compared with $72.30 in the first three months of the year, as a key driver of the improved financial performance.
Operating expenses declined 5% sequentially to $3.1 million, driven by lower lease operating costs and reduced general and administrative expenses. The company maintained its capital expenditure guidance for 2024 at $12 million, with a focus on maintaining production stability while preserving balance sheet strength.
Empire Petroleum’s shares were down 1.5% in after-hours trading following the release, though the move was within the typical range for post-earnings volatility in the sector. The company has not provided updated guidance for full-year 2024 production or earnings.
Chief Executive Officer John Woods said the results demonstrate the company’s ability to sustain output growth while managing costs amid a volatile oil price environment.
