📊 EP Key Takeaways
Is EP a Good Investment? Thesis Analysis
Empire Petroleum is in severe financial distress with negative stockholders' equity of -$4.6M, indicating liabilities exceed assets. The company is experiencing massive operating losses (-$71.3M) on declining revenue (-21.6% YoY), with negative free cash flow (-$4.1M) and critically weak liquidity (0.34x current ratio). Without immediate operational turnaround or capital restructuring, the company faces potential insolvency.
Why Buy EP? Key Strengths
- Minimal capital expenditure requirements ($179.5K) suggest asset-light operations
- 5 insider filings in last 90 days indicate some management engagement
- Cash position of $1.2M provides short-term operational runway
EP Investment Risks to Consider
- Negative stockholders' equity creates technical insolvency condition
- Operating losses of -$71.3M with -208.5% operating margin indicate core business dysfunction
- Revenue declining 21.6% YoY with negative operating cash flow signals deteriorating operational performance
- Current ratio of 0.34x indicates severe liquidity crisis - liabilities due within 12 months exceed current assets by 66%
- Negative free cash flow (-$4.1M) means company cannot sustain operations or service debt from operations
- Long-term debt of $15.2M represents 1,267% of available cash reserves
Key Metrics to Watch
- Operating cash flow trend - must return positive to avoid liquidity crisis
- Revenue stabilization - current 21.6% YoY decline is unsustainable
- Debt restructuring announcements - highly likely given negative equity position
- Total liabilities trajectory - currently exceed assets by $4.6M
EP Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EP Profitability Ratios
EP vs Energy Sector
How EMPIRE PETROLEUM CORP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EP Overvalued or Undervalued?
Based on fundamental analysis, EMPIRE PETROLEUM CORP has mixed fundamental signals 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.
EP Balance Sheet & Liquidity
EP 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
EP Quarterly 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.
EP Capital Allocation
EP SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EP's key strengths?
Claude: Minimal capital expenditure requirements ($179.5K) suggest asset-light operations. 5 insider filings in last 90 days indicate some management engagement.
What are the risks of investing in EP?
Claude: Negative stockholders' equity creates technical insolvency condition. Operating losses of -$71.3M with -208.5% operating margin indicate core business dysfunction.
What is EP's revenue and growth?
EMPIRE PETROLEUM CORP reported revenue of $34.2M.
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 $-2.12.
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 rating reflects both perspectives for balanced insights.
Is EP a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EMPIRE PETROLEUM CORP has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EP stock overvalued or undervalued?
Valuation metrics for EP: ROE of N/A (sector avg: 14%), net margin of -210.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EP stock in 2026?
Our dual AI analysis gives EMPIRE PETROLEUM CORP a combined STRONG SELL rating 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 $-3.9M, with capital expenditures of $179.5K. FCF margin is -12.1%.
How does EP compare to other Energy stocks?
Vs Energy sector averages: Net margin -210.7% (avg: 12%), ROE N/A (avg: 14%), current ratio 0.34 (avg: 1.3).