📊 EP Key Takeaways
Is Empire Petroleum Corp. (EP) a Good Investment?
Empire Petroleum faces severe financial distress with persistent operating losses of $5.6M against declining $5.1M revenue (-21.6% YoY), negative free cash flow of $1.1M, and critical liquidity crisis (0.59x current ratio). The 4.12x debt-to-equity leverage with $15.2M debt burden is unsustainable given negative interest coverage of -21.8x and thin $3.7M equity cushion, creating imminent insolvency risk.
Empire Petroleum’s fundamentals are severely impaired: revenue is declining, operating and net margins are deeply negative, and the company is consuming cash rather than generating it. Financial health is especially weak, with negative equity, sub-1.0 liquidity ratios, and limited cash relative to liabilities, which raises substantial solvency and refinancing risk. Unless profitability and balance sheet strength improve materially, the business quality appears poor.
Empire Petroleum Corp. Key Strengths (EP)
- Maintains $8.8M cash position providing short-term operational runway of 9+ months at current burn rate
- Commodity-exposed oil & gas sector offers potential upside if crude/natural gas prices improve materially
- Generates $5.1M revenue base provides foundation for operational restructuring if costs can be reduced
- Revenue base remains meaningful at $34.20M despite a difficult year
- Capital expenditure remains low, which limits additional cash strain from investment spending
- Operating cash burn is modest relative to the scale of reported accounting losses, suggesting some non-cash loss components
EP Stock Risks: Empire Petroleum Corp. Investment Risks
- Critical liquidity crisis: 0.59x current ratio indicates inability to pay short-term obligations; quick ratio of 0.54x confirms severe cash constraint
- Unsustainable cash burn: -$970K operating cash flow and -$1.1M free cash flow depletes reserves without immediate operational improvement
- Excessive leverage with negative earnings: 4.12x debt-to-equity and -21.8x interest coverage means debt service cannot be funded from operations
- Revenue collapse: -21.6% YoY decline with -130.2% net margin indicates structural profitability failure, not cyclical weakness
- Insolvency risk: $74.3M liabilities vs $3.7M equity provides minimal margin for error; covenant violations or refinancing failure likely
- Form 4 insider activity (5 filings) suggests heightened management concern; potential sign or dilution/distressed transactions
- Negative stockholders’ equity indicates balance sheet stress and elevated solvency risk
- Current ratio of 0.34x and cash of $1.19M versus total liabilities of $70.48M signal weak liquidity
- Revenue fell 21.6% YoY while operating margin was -208.5%, showing poor growth quality and severe profitability deterioration
Key Metrics to Watch
- Operating cash flow - must turn positive within 2-3 quarters or solvency at risk
- Revenue stabilization and gross margin recovery - path to cash generation is existential
- Liquidity runway calculation - quarters of cash remaining at current burn rate
- Debt covenant status and refinancing negotiations - watch for technical defaults
- Current ratio trend - must exceed 1.0x to exit liquidity danger zone
- Operating cash flow and free cash flow trend
- Liquidity improvement, especially cash balance and current ratio
Empire Petroleum Corp. (EP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EP Profit Margin, ROE & Profitability Analysis
EP vs Energy Sector: How Empire Petroleum Corp. Compares
How Empire Petroleum Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Empire Petroleum Corp. Stock Overvalued? EP Valuation Analysis 2026
Based on fundamental analysis, Empire Petroleum Corp. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Empire Petroleum Corp. Balance Sheet: EP Debt, Cash & Liquidity
EP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Empire Petroleum Corp.'s revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-0.54 indicates the company is currently unprofitable.
EP Revenue Growth, EPS Growth & YoY Performance
EP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2025 | $8.7M | -$4.0M | $-0.15 |
| Q1 2025 | $9.0M | -$4.0M | $-0.12 |
| Q3 2024 | $10.3M | -$2.5M | $-0.12 |
| Q2 2024 | $9.8M | -$2.5M | $-0.11 |
| Q1 2024 | $10.1M | -$2.5M | $-0.11 |
| Q3 2023 | $10.3M | $215.9K | $0.01 |
| Q2 2023 | $9.8M | -$2.5M | $-0.11 |
| Q1 2023 | $10.1M | -$2.5M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Empire Petroleum Corp. Dividends, Buybacks & Capital Allocation
EP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Empire Petroleum Corp. (CIK: 0000887396)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EP
What is the AI rating for EP?
Empire Petroleum Corp. (EP) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 95% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EP's key strengths?
Claude: Maintains $8.8M cash position providing short-term operational runway of 9+ months at current burn rate. Commodity-exposed oil & gas sector offers potential upside if crude/natural gas prices improve materially. ChatGPT: Revenue base remains meaningful at $34.20M despite a difficult year. Capital expenditure remains low, which limits additional cash strain from investment spending.
What are the risks of investing in EP?
Claude: Critical liquidity crisis: 0.59x current ratio indicates inability to pay short-term obligations; quick ratio of 0.54x confirms severe cash constraint. Unsustainable cash burn: -$970K operating cash flow and -$1.1M free cash flow depletes reserves without immediate operational improvement. ChatGPT: Negative stockholders’ equity indicates balance sheet stress and elevated solvency risk. Current ratio of 0.34x and cash of $1.19M versus total liabilities of $70.48M signal weak liquidity.
What is EP's revenue and growth?
Empire Petroleum Corp. reported revenue of $5.1M.
Does EP pay dividends?
Empire Petroleum Corp. does not currently pay dividends.
Where can I find EP SEC filings?
Official SEC filings for Empire Petroleum Corp. (CIK: 0000887396) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EP's EPS?
Empire Petroleum Corp. has a diluted EPS of $-0.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Empire Petroleum Corp. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EP stock overvalued or undervalued?
Valuation metrics for EP: ROE of -180.0% (sector avg: 14%), net margin of -130.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EP's AI grade for 2026?
Our dual AI analysis gives Empire Petroleum Corp. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EP's free cash flow?
Empire Petroleum Corp.'s operating cash flow is $-970.0K, with capital expenditures of $179.5K. FCF margin is -22.5%.
How does EP compare to other Energy stocks?
Vs Energy sector averages: Net margin -130.2% (avg: 12%), ROE -180.0% (avg: 14%), current ratio 0.59 (avg: 1.3).
Is Empire Petroleum Corp. carrying too much debt?
EP has a debt-to-equity ratio of 4.12x, which is above the Energy sector average of 0.6x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.