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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
2.0%
Sector: 6.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, EMPIRE PETROLEUM CORP (EP) receives a "Reduce" rating with a composite score of 39.6/100, ranked #3066 out of 4446 stocks. Key factor scores: Quality 50/100, Value 81/100, Momentum 23/100. This is quantitative analysis only — not investment advice.
EMPIRE PETROLEUM CORP (EP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does EMPIRE PETROLEUM CORP Do?
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. EMPIRE PETROLEUM CORP (EP) is classified as a micro-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Thomas W. Pritchard and employs approximately 30 people. With a market capitalization of $102M, EP is one of the notable companies in the Energy sector.
As of April 2026, EMPIRE PETROLEUM CORP receives a Reduce rating with a composite score of 39.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.EP ranks #3,066 out of 4,446 stocks in our coverage universe. Within the Energy sector, EMPIRE PETROLEUM CORP ranks #116 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
EP Stock Price and 52-Week Range
EMPIRE PETROLEUM CORP (EP) currently trades at $2.90. The stock gained $0.03 (1.0%) in the most recent trading session. The 52-week high for EP is $6.40, which means the stock is currently trading -54.7% from its annual peak. The 52-week low is $2.77, putting the stock 4.7% above its annual trough. Recent trading volume was 63K shares, suggesting relatively thin trading activity.
Is EP Overvalued or Undervalued? — Valuation Analysis
EMPIRE PETROLEUM CORP (EP) carries a value factor score of 81/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 0.16x, compared to the Energy sector average of 19.63x — a discount of 99%. The price-to-book ratio stands at 0.00x, versus the sector average of 1.64x. The price-to-sales ratio is 0.03x, compared to 0.47x for the average Energy stock. On an enterprise value basis, EP trades at 0.10x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, EMPIRE PETROLEUM CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
EMPIRE PETROLEUM CORP Profitability — ROE, Margins, and Quality Score
EMPIRE PETROLEUM CORP (EP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 2.0%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.9% versus the sector average of 3.7%.
On a margin basis, EMPIRE PETROLEUM CORP reports gross margins of 109.3%, compared to 52.7% for the sector. The operating margin is -28.9% (sector: 10.7%). Net profit margin stands at -33.3%, versus 6.4% for the average Energy stock. Revenue growth is running at -99.7% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
EP Debt, Balance Sheet, and Financial Health
EMPIRE PETROLEUM CORP has a debt-to-equity ratio of 124.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.64x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $16M. Cash and equivalents stand at $5M.
EP has a beta of 1.51, meaning it is more volatile than the broader market — a $10,000 investment in EP would be expected to move 51.0% more than the S&P 500 on any given day. The stability factor score for EMPIRE PETROLEUM CORP is 27/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
EMPIRE PETROLEUM CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, EMPIRE PETROLEUM CORP reported revenue of $3.73B and earnings per share (EPS) of $1.37. Net income for the quarter was $638M. Gross margin was 109.3%. Operating income came in at $1.00B.
In FY 2025, EMPIRE PETROLEUM CORP reported revenue of $16.94B and earnings per share (EPS) of $1.37. Net income for the quarter was $3.16B. Revenue grew 12.2% year-over-year compared to FY 2024. Operating income came in at $4.72B.
In Q3 2025, EMPIRE PETROLEUM CORP reported revenue of $9M and earnings per share (EPS) of $-0.11. Net income for the quarter was $-4M. Revenue grew -99.7% year-over-year compared to Q3 2024. Operating income came in at $-4M.
In Q2 2025, EMPIRE PETROLEUM CORP reported revenue of $8M and earnings per share (EPS) of $-0.15. Net income for the quarter was $-5M. Gross margin was 109.3%. Revenue grew -99.8% year-over-year compared to Q2 2024. Operating income came in at $-5M.
Over the past 8 quarters, EMPIRE PETROLEUM CORP has demonstrated a growth trajectory, with revenue expanding from $3.57B to $3.73B. Investors analyzing EP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
EP Dividend Yield and Income Analysis
EMPIRE PETROLEUM CORP (EP) does not currently pay a dividend. This is common among smaller companies in the Petroleum And Natural Gas industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Energy dividend stocks may want to explore other Energy stocks or use the stock screener to filter by dividend yield.
EP Momentum and Technical Analysis Profile
EMPIRE PETROLEUM CORP (EP) has a momentum factor score of 23/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 40/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 1/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
EP vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing EP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full EP vs S&P 500 (SPY) comparison to assess how EMPIRE PETROLEUM CORP stacks up against the broader market across all factor dimensions.
EP Next Earnings Date
No upcoming earnings date has been announced for EMPIRE PETROLEUM CORP (EP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy EP? — Investment Thesis Summary
The quantitative profile for EMPIRE PETROLEUM CORP suggests caution. The value score of 81/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 23/100, a headwind for near-term performance. High volatility (stability score 27/100) increases portfolio risk.
In summary, EMPIRE PETROLEUM CORP (EP) earns a Reduce rating with a composite score of 39.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on EP stock.
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Institutional Research Dossier
EMPIRE PETROLEUM CORP (EP) Deep Dive Analysis
Published on March 24, 2026
Action RatingReduce
Sections
Executive Summary
Empire Petroleum Corporation (EP) receives a Hold rating, driven by a mixed financial profile. While the company exhibits attractive valuation multiples and a high gross margin compared to the energy sector, these positives are offset by significant revenue decline, negative operating and net margins, and negative free cash flow. The company's future performance hinges on its ability to stabilize revenue and improve operational efficiency.
The primary concern revolves around Empire Petroleum's volatile financial performance, particularly the drastic revenue contraction and persistent negative profitability metrics in recent quarters. Despite the seemingly low valuation multiples, the lack of consistent profitability and cash flow generation raises questions about the sustainability of the business model. Investors should closely monitor the company's ability to execute its strategic initiatives and improve its financial performance before considering a more bullish stance.
Business Strategy & Overview
Empire Petroleum Corporation operates as an exploration and development company focused on oil and gas interests across several key U.S. basins, including Louisiana, New Mexico, North Dakota, Montana, and Texas. The company's strategy likely involves acquiring and developing existing oil and gas properties, aiming to increase production and reserves. Given the company's size, it likely focuses on smaller, less capital-intensive projects compared to larger integrated oil companies.
The company's revenue generation is directly tied to the production and sale of crude oil and natural gas. The prices of these commodities are subject to significant volatility, influenced by global supply and demand dynamics, geopolitical events, and macroeconomic factors. Empire Petroleum's profitability is therefore highly sensitive to fluctuations in commodity prices.
Based on the provided data, Empire Petroleum's recent performance indicates a significant strategic challenge. The company's revenue has plummeted by 99.7% year-over-year, suggesting potential issues with production, sales, or both. This drastic decline necessitates a thorough investigation into the underlying causes, such as reduced production volumes, lower realized prices, or asset divestitures.
The company's strategic positioning within the energy sector is that of a smaller, independent operator. This allows for agility in pursuing specific opportunities but also exposes the company to greater risks associated with individual projects and commodity price volatility. The company's ability to effectively manage its assets, control costs, and adapt to changing market conditions will be crucial for its long-term success.
Given the limited information on specific projects or a product pipeline, it's difficult to assess the company's future growth prospects. However, the company's focus on exploration and development suggests a continuous effort to identify and develop new reserves. The success of these efforts will be critical in reversing the recent revenue decline and restoring profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-99.7%
Sector: -1.2%
+8425% VS SCTR
Economic Moat Analysis
Empire Petroleum Corporation's economic moat appears to be non-existent. The oil and gas exploration and production industry is highly competitive, with numerous players ranging from large integrated companies to smaller independent operators. In such a fragmented market, it is difficult for a company like Empire Petroleum, with a relatively small market capitalization, to establish a sustainable competitive advantage.
The company does not appear to possess any significant network effects. The value of its oil and gas properties is not inherently increased by the number of other properties it owns or the number of customers it serves. The primary driver of value is the quantity and quality of the reserves it holds and its ability to efficiently extract and sell those reserves.
Switching costs are also negligible in this industry. Customers who purchase oil and gas from Empire Petroleum can easily switch to other suppliers without incurring significant costs. This lack of customer loyalty further weakens the company's competitive position.
While the company's high gross margin of 109.3% compared to the sector average of 55.1% might suggest a cost advantage, this is misleading given the negative operating and net margins. The high gross margin is likely due to accounting anomalies or specific circumstances in a particular quarter and is not indicative of a sustainable cost advantage. The negative operating margin suggests that the company's operating expenses are significantly higher than its gross profit, negating any potential cost advantage.
Efficient scale is also unlikely to be a significant factor for Empire Petroleum. While economies of scale can be achieved in certain aspects of oil and gas production, the company's relatively small size limits its ability to fully exploit these economies. Larger companies with greater production volumes and more extensive infrastructure are likely to have a cost advantage in this area.
Financial Health & Profitability
Empire Petroleum's financial health presents a mixed picture. The company's revenue has experienced a dramatic decline, with a year-over-year decrease of 99.7%. This is a significant cause for concern, indicating potential issues with production, sales, or market conditions. The quarterly financial history reveals a volatile revenue stream, with substantial fluctuations from quarter to quarter. The consistent negative operating and net margins in recent quarters further exacerbate the concerns about the company's financial stability.
Despite the revenue decline, the company reported a substantial net income of $3.16 billion for the trailing twelve months (TTM). However, this figure appears inconsistent with the negative net income reported in recent quarters, suggesting a potential one-time gain or accounting adjustment that significantly inflated the TTM result. The negative free cash flow of $-3.49 million indicates that the company is not generating sufficient cash from its operations to cover its capital expenditures and other obligations.
The company's balance sheet reveals a relatively low cash balance of $4.60 million and a total debt of $15.96 million. The debt-to-equity ratio of 124.00 is significantly higher than the sector average of 55.00, indicating a higher level of financial leverage. This increased leverage could pose a risk to the company's financial stability, particularly in a volatile commodity price environment.
The current ratio of 0.64 suggests that the company may face challenges in meeting its short-term obligations. A current ratio below 1.0 indicates that the company's current liabilities exceed its current assets, potentially leading to liquidity issues.
Compared to the energy sector, Empire Petroleum's ROE of 2.0% is significantly lower than the sector average of 6.9%. This indicates that the company is not generating as much profit from its equity as its peers. The negative operating and net margins further highlight the company's underperformance relative to the sector.
Valuation Assessment
Empire Petroleum's valuation metrics present a seemingly attractive picture at first glance. The company's P/E ratio of 2.4x is significantly lower than the sector average of 19.5x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA ratio of 0.0x is substantially lower than the sector average of 3.5x, further indicating potential undervaluation.
However, these valuation metrics should be interpreted with caution due to the inconsistencies in the company's financial performance. The substantial net income reported for the TTM period appears to be an anomaly, given the negative net income reported in recent quarters. This suggests that the P/E ratio may not be a reliable indicator of the company's true valuation.
The negative free cash flow further complicates the valuation assessment. A company with negative free cash flow is typically valued based on its potential to generate future cash flows, which is highly uncertain in Empire Petroleum's case given its recent performance. The lack of consistent profitability and cash flow generation makes it difficult to determine a fair value for the stock.
Given the significant revenue decline and negative operating and net margins, it is difficult to justify a premium valuation for Empire Petroleum. While the low valuation multiples may appear attractive, they are likely a reflection of the company's underlying financial challenges and the uncertainty surrounding its future prospects.
A more conservative valuation approach would involve considering the company's asset base and its potential to generate future cash flows under different scenarios. However, without more detailed information on the company's reserves, production costs, and future development plans, it is difficult to arrive at a precise valuation. Based on the available data, the stock appears to be fairly valued, considering the risks and uncertainties associated with the business.
Risk & Uncertainty
Empire Petroleum faces several significant risks and uncertainties that could negatively impact its financial performance and stock price. The most pressing risk is the company's reliance on volatile commodity prices. Fluctuations in the prices of crude oil and natural gas can significantly impact the company's revenue and profitability. A sustained decline in commodity prices could lead to reduced production, lower sales, and further financial distress.
Another significant risk is the company's high level of financial leverage. The debt-to-equity ratio of 124.00 is significantly higher than the sector average, indicating a greater reliance on debt financing. This increased leverage could make the company more vulnerable to economic downturns and commodity price volatility. The company's ability to service its debt obligations could be compromised if its revenue and profitability do not improve.
The company also faces operational risks associated with oil and gas exploration and production. These risks include drilling failures, production disruptions, environmental liabilities, and regulatory compliance. Any of these events could result in significant costs and negatively impact the company's financial performance.
The drastic revenue decline of 99.7% year-over-year raises serious concerns about the company's ability to sustain its operations. This decline could be due to a variety of factors, such as reduced production volumes, lower realized prices, asset divestitures, or a combination of these factors. The company needs to address the underlying causes of this decline and implement effective strategies to restore revenue growth.
Finally, the company's small market capitalization and limited financial resources make it more vulnerable to competitive pressures. Larger, more well-capitalized companies may have a competitive advantage in acquiring and developing oil and gas properties. The company's ability to compete effectively in the industry will depend on its ability to manage its costs, optimize its operations, and identify attractive investment opportunities.
Bulls Say / Bears Say
The Bull Case
BULL VIEWEmpire Petroleum's extremely low P/E and EV/EBITDA ratios suggest it is deeply undervalued, offering substantial upside potential if it can simply stabilize its revenue.
BULL VIEWThe company's high gross margin, if sustainable, indicates a potential competitive advantage that could drive future profitability improvements and shareholder value.
BULL VIEWWith strategic acquisitions and efficient operations, Empire Petroleum can capitalize on rising energy demand and significantly increase its production and reserves, leading to substantial revenue growth.
The Bear Case
BEAR VIEWEmpire Petroleum's massive revenue decline and negative free cash flow signal a company in distress, making its low valuation multiples a value trap.
BEAR VIEWThe company's high debt-to-equity ratio and low current ratio indicate a precarious financial position, increasing the risk of bankruptcy or significant dilution for shareholders.
BEAR VIEWGiven the intense competition in the oil and gas industry, Empire Petroleum lacks a sustainable competitive advantage and is unlikely to achieve consistent profitability or generate long-term shareholder value.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score EP and 4,400+ other equities.
EMPIRE PETROLEUM CORP exhibits a 97% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
0.9%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
109.3%
Sector: 52.7%
Operating Margin
Core business profitability
-28.9%
Sector: 10.7%
Net Margin
Bottom-line profitability
-33.3%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
