Empire Petroleum Corporation (EP) | Investment Case

1. Company Snapshot

1.a. Company Description

Empire Petroleum Corporation engages in the exploration and development of oil and gas interests in Louisiana, New Mexico, North Dakota, Montana, and Texas.The company was formerly known as Americomm Resources Corporation and changed its name to Empire Petroleum Corporation in August 2001.Empire Petroleum Corporation was incorporated in 1983 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on EP

Empire Petroleum Corporation's recent stock performance was driven by encouraging news from Kuehn Law, a shareholder litigation law firm, which is investigating whether certain officers and directors of Empire Petroleum Corp breached their fiduciary duties to shareholders. The investigation concerns potential self-dealing.

1.c. Company Highlights

Last Price	3.14
Change Percentage	-0.63%
Open	3.2
Previous Close	3.16
Market Cap ( Millions)	106
Volume	38489
Year High	8.12
Year Low	2.78
M A 50	3.55
M A 200	4.77

FCF Yield	-13.80%
Dividend Yield	0.00%
ROE	-30.11%
Debt / Equity	29.07%
Net Debt / EBIDTA	-214.64%
Price To Book	1.99
Price Earnings Ratio	-6.17
Price To FCF	-7.25
Price To sales	2.84
EV / EBITDA	-22.8

2. Transcript Summary

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3. NewsRoom

Kuehn Law Encourages Investors of Empire Petroleum Corp to Contact Law Firm

Jan -07

Source: globenewswire.com

Kuehn Law Encourages Investors of Empire Petroleum Corp to Contact Law Firm

Dec -12

Source: prnewswire.com

Empire Petroleum Increases Revolver Loan Facility with Equity Bank to $20 Million in Support of Strategic Growth Initiatives

Nov -22

Source: businesswire.com

Newman Ferrara LLP Announces Corporate Governance Investigation of Empire Petroleum Corporation – EP

Aug -19

Source: businesswire.com

Empire Petroleum Provides Encouraging North Dakota Drilling Program Update and Reports Q1 2024 Results

May -15

Source: businesswire.com

Empire Petroleum Announces Full Subscription of Rights Offering

Apr -11

Source: businesswire.com

Empire Petroleum to Participate in the 36th Annual ROTH Conference

Mar -14

Source: businesswire.com

EMPIRE PETROLEUM ANNOUNCES COMMENCEMENT OF PREVIOUSLY ANNOUNCED RIGHTS OFFERING

Mar -08

Source: prismmediawire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Oil

Expected Growth: 4.5%

Growing demand for refined petroleum products, increasing vehicle sales, and infrastructure development are expected to drive the growth of Empire Petroleum Corporation's oil segment.

Gas

Expected Growth: 4.5%

Growing demand for refined petroleum products, increasing vehicle sales, and expansion of retail outlets and distributors are expected to drive Empire Petroleum Corporation's gas segment growth.

Natural Gas Liquids

Expected Growth: 4.5%

Growing demand for petrochemicals, increasing use of natural gas liquids as a cleaner-burning fuel, and rising investments in midstream infrastructure are expected to drive the growth of the natural gas liquids market.

7. Detailed Products

Fuel and Lubricants

Empire Petroleum Corporation offers a wide range of fuel products, including gasoline, diesel, and alternative fuels, as well as lubricants for vehicles and equipment.

Cardlock Fueling

Empire's cardlock fueling system provides secure, unattended fueling for commercial fleets and vehicles.

Bulk Fuel Delivery

Empire Petroleum Corporation delivers bulk fuel to customers in various industries, including construction, mining, and agriculture.

Fuel Management Services

Empire's fuel management services help customers track and manage their fuel consumption, reduce costs, and optimize their fuel usage.

Emergency Fueling Services

Empire Petroleum Corporation provides emergency fueling services to customers in need of urgent fuel delivery.

8. Empire Petroleum Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Empire Petroleum Corporation is moderate due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of alternative suppliers and the high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers is high due to the concentration of suppliers and the high demand for raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the high level of competition in the industry and the need for companies to differentiate themselves through pricing and product offerings.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	14.93%
Debt Cost	10.35%
Equity Weight	85.07%
Equity Cost	10.35%
WACC	10.35%
Leverage	17.55%

11. Quality Control: Empire Petroleum Corporation passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Tellurian

A-Score: 3.7/10

Value: 7.0

Growth: 6.1

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

W&T Offshore

A-Score: 3.4/10

Value: 7.4

Growth: 1.1

Quality: 4.4

Yield: 2.0

Momentum: 3.0

Volatility: 2.3

1-Year Total Return ->

Vivakor

A-Score: 3.3/10

Value: 9.8

Growth: 6.4

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Empire Petroleum

A-Score: 3.3/10

Value: 7.4

Growth: 5.3

Quality: 2.9

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

Battalion Oil

A-Score: 2.8/10

Value: 9.7

Growth: 3.1

Quality: 3.7

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

USE

A-Score: 2.6/10

Value: 7.8

Growth: 2.2

Quality: 2.3

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.06%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.35%

Empire Petroleum Corporation - US2920343033

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EP

1.c. Company Highlights

Weak Momentum

More Volatile

Lower Quality

Lower Growth

Lower Yield

Strong Momentum

Stable Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Oil

Expected Growth: 4.5%

Gas

Expected Growth: 4.5%

Natural Gas Liquids

Expected Growth: 4.5%

7. Detailed Products

Fuel and Lubricants

Cardlock Fueling

Bulk Fuel Delivery

Fuel Management Services

Emergency Fueling Services

8. Empire Petroleum Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Empire Petroleum Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.14$

Current Price

3.14$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA