Empire Petroleum's Q2 gains.
Empire Petroleum Boosts Q2 Sales, Narrows Adjusted EPS Loss Year-Over-Year.
Empire Petroleum (NYSE American: EP) narrowed its losses in Q2, reporting an adjusted EPS of $(0.06), up from $(0.15) in the same quarter last year, according to Benzinga. Revenue climbed to $9.505M, compared to $8.754M a year ago — a gain of roughly 8.5% year over year.
The results come as the company also announced a major operational win: a successful 21,006-foot well in the Western Haynesville formation in Texas, a move the company says will accelerate revenue development, Barchart reported.
Q2 Losses Shrink as Revenue Grows Year Over Year
Empire Petroleum's adjusted loss per share shrank by more than half — from $(0.15) last year to $(0.06) this quarter, according to Benzinga. That is a meaningful improvement, even though the company is still operating at a loss. Revenue of $9.505M beat last year's $8.754M by about $750,000.
The company has not yet turned profitable, but the trend is moving in the right direction. Shrinking losses combined with rising sales suggest Empire is gaining financial footing as it expands its drilling operations in Texas.
21,006-Foot Texas Well Marks a Key Drilling Milestone
Empire Petroleum completed a successful 21,006-foot re-entry and subsurface evaluation of a well in the Western Haynesville region of Texas, Barchart reported. The company called it a "strategic milestone" in its Texas gas development program. The Western Haynesville is one of the deepest and most productive natural gas plays in the United States.
The well is known as the Wake well. Completing a re-entry at that depth is a technically difficult task. Success here signals that Empire's drilling team can handle the complexity of the Western Haynesville formation, which could open the door to more wells like it.
Western Haynesville Push Aims to Speed Up Revenue
Empire's Texas gas program is central to its growth strategy. The Western Haynesville formation sits deep underground — often more than 20,000 feet down — and holds large reserves of natural gas. Companies that crack this formation can tap into significant long-term production, according to Market Screener.
Empire says the successful well will help "accelerate revenue development." That phrase matters right now. The company is still posting losses, so boosting production — and therefore revenue — is the fastest path toward profitability. The Texas program appears to be its best near-term lever for growth.
What to Watch as Empire Heads Into the Second Half
With Q2 results in and a major well completed, investors will now focus on two things: whether Empire can keep narrowing its losses in Q3, and how quickly the Western Haynesville well moves into active production. A well at 21,006 feet is a big achievement, but production numbers are what drive revenue.
Empire trades on the NYSE American exchange under the ticker EP. The company is still small — quarterly revenue under $10M — but the combination of improving financials and a successful deep well gives it a clearer growth story heading into the back half of 2024.
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