• ExxonMobil for U.S. oil fields.

• Crude Oil: A raw fossil fuel extracted from underground reservoirs, primarily used to produce gasoline, diesel, and other petroleum products.
• Natural Gas: A combustible mixture of hydrocarbons, predominantly methane, extracted from the earth and used as a fuel source for heating, electricity generation, and industrial processes.

Empire Petroleum (symbol: EP) sells its crude oil and natural gas production primarily to **other companies** in the energy sector.

According to Empire Petroleum's most recent public filings (10-K reports), no single customer accounted for more than 10% of its total revenues for the years ended December 31, 2022, and 2021. Due to this lack of revenue concentration with any one entity, the company does not disclose individually named "major customers" in its financial statements.

However, the company broadly identifies its purchasers as:

• Pipeline companies
• Natural gas gathering companies
• Marketers

These categories represent the types of entities that buy crude oil and natural gas directly from producers like Empire Petroleum for further processing, transportation, or sale into the market.

Michael R. Morrisett, Chief Executive Officer, President, Principal Financial Officer, Treasurer, Secretary and Director

Mr. Morrisett has over 25 years of experience in investment banking and considerable experience in the management of non-operated oil and gas operations. He has served as a director, President, and Principal Financial Officer of Empire Petroleum Corporation since January 19, 2015. From November 2012 to January 2018, Mr. Morrisett was a partner at Total Energy Partners Funds, an investment fund focused on non-operated oil and gas working interests. He was also involved in Empire Holdings, LLC, which purchased shares of Empire Petroleum, and he owned 45% of its equity interest before it dissolved and distributed common stock to its members in March 2019.

Matthew E. Watson, Chief Accounting Officer

Mr. Watson was appointed Chief Accounting Officer in September 2024. He is a Certified Public Accountant with over 20 years of accounting and financial reporting experience in the oil and gas industry. Before joining Empire Petroleum, he served as Executive Vice President of Accounting and Finance for Command Energy, LLC, an oil and gas exploration and production company, from January 2021 to August 2024. Mr. Watson also provided accounting and financial consulting services to Citizen Energy Holdings, LLC and Mid-Con Energy Partners, LP, and was Controller of Midstates Petroleum Company, Inc. from July 2015 to September 2019.

Phil E. Mulacek, Non-Executive Chairman of the Board

Mr. Mulacek has a proven track record of over 35 years in global oil and gas and LNG development. He is the founder and former Chairman and CEO of InterOil Corporation, an NYSE-listed company which he retired from in 2013. During his 14-year tenure at InterOil, the company's market capitalization grew from $10 million to over $5.6 billion. He also founded the private investment company Petroleum Independent and Exploration Corporation (PIE Corp) in 1981, which now holds substantial oil and gas royalty mineral acreage in the United States. Mr. Mulacek has been Chairman of Empire Petroleum Corporation since 2022.

J. Kevin Vann, Vice President, Finance and Strategic Planning and Independent Director

Mr. Vann joined Empire Petroleum as an executive officer in the newly created position of Vice President, Finance and Strategic Planning in October 2022. He also serves as an Independent Director on the company's Board. Mr. Vann has over 25 years of energy industry and public accounting experience, including strategic M&A roles. He was most recently Executive Vice President and Chief Financial Officer at WPX Energy, a publicly traded energy company that merged with Devon Energy Corporation in 2021. During his time as EVP & CFO at WPX Energy, he played a key role in transactions exceeding $8 billion over three years. Prior to WPX Energy, Mr. Vann held multiple roles at The Williams Companies from 1998 to 2011 and began his career at Arthur Anderson & Co.

William West, Senior Vice President of Operations

Mr. West joined Empire Petroleum in 2023 and serves as Senior Vice President of Operations. Before joining Empire, he was the Production Manager for Treadstone, I, II, and III, where he oversaw the development of the Fort Trinidad field, increasing its production from 300 BOPD to 10,000 BOPD. Mr. West holds a Bachelor's degree in petroleum engineering from Marietta College and a Professional Engineer license from the Wyoming State Board.

The key risks to Empire Petroleum (EP) primarily stem from its high dependence on oil prices and its historical financial performance.

1. Extreme Reliance on High Oil Prices and Consistent Operating Losses: Empire Petroleum's profitability is highly sensitive to crude oil prices, having consistently incurred operating losses in most periods, with 2022 being an exception due to exceptionally high oil and gas prices. This suggests a business model that struggles to be profitable under average market conditions, making it vulnerable to oil market fluctuations, oversupply, and price declines.
2. High Operating Costs and Inability to Consistently Cover Interest Expenses: The company's operating costs are notably high relative to current oil prices, contributing to recurring operating losses and negative free cash flow. This financial vulnerability means Empire Petroleum frequently needs to raise funds as it cannot consistently cover its interest expenses.
3. Exposure to General Oil and Gas Operational Risks, Capital Requirements, and Regulatory/Environmental Factors: As an oil and gas producer, Empire Petroleum faces inherent risks associated with exploration and development, including unforeseen capital requirements, increased operational costs, and drilling difficulties. Furthermore, the company is subject to governmental and environmental regulations, including potential climate change legislation and restrictions on greenhouse gas emissions, which could increase operating costs and reduce demand for its products.

• Decreased access to capital for fossil fuel companies due to increasing environmental, social, and governance (ESG) pressures from investors and financial institutions, potentially hindering funding for acquisitions, development, and operational activities.
• Accelerated global energy transition away from fossil fuels, driven by the rapid adoption of renewable energy technologies and electric vehicles, which threatens the long-term demand for oil and natural gas, potentially leading to sustained lower commodity prices and reduced market size.
• Increasing regulatory burden and compliance costs associated with environmental protection, including stricter emissions standards (e.g., methane), water management regulations, and climate-related disclosure requirements, which can raise operating expenses and limit operational flexibility.

Empire Petroleum Corporation (EP) primarily operates in the exploration and production (upstream) sector of the oil and natural gas industry within the United States.

The addressable market for Empire Petroleum's main products and services can be understood at both a national and regional basin level, focusing on oil and natural gas production in the U.S. onshore.

U.S. Oil and Gas Exploration and Production Market (Upstream)

The U.S. oil and gas market, which includes exploration, extraction, refining, transportation, and distribution, was valued at approximately USD 453.2 billion in 2024, with projections to reach USD 474.5 billion in 2025 and USD 665.5 billion by 2033, growing at a CAGR of 4.7%. The upstream sector, where Empire Petroleum operates, dominated this market, holding a 58.5% share in 2024. Another estimate places the U.S. oil and gas market size at USD 252.6 billion in 2024, with a projected increase to USD 339.5 billion by 2033. Furthermore, the U.S. oil drilling and gas extraction market size was valued at USD 488.9 billion in 2024 and is projected to be USD 484.6 billion in 2025.

Regional Market Sizes (United States)

Permian Basin (West Texas and Southeastern New Mexico)

Empire Petroleum has assets in the Permian Basin. This basin is the largest petroleum-producing basin in the United States. In 2023, crude oil production in the Permian Basin was 5,790 thousand barrels per day (mbd), and natural gas production was 19,315 million cubic feet per day (mmcfd). Projections for 2025 indicate that crude oil output in the Permian Basin is expected to rise to 6.6 million barrels per day (b/d), with natural gas production reaching 25.8 billion cubic feet per day.

Williston Basin (North Dakota and Montana)

Empire Petroleum also holds producing assets in the Bakken region, which is part of the Williston Basin, across North Dakota and Montana. The total oil production for the Williston Basin (encompassing North Dakota, Eastern Montana, and South Dakota) reached approximately 1,285,510 barrels of oil per day (BOPD) in August 2023.

Central Gulf Coast Region (Louisiana and Texas)

The company maintains operations in the Central Gulf Coast region, specifically in Louisiana and Texas. Texas was a significant contributor to the U.S. oil and gas market, accounting for 43.1% of the total U.S. oil and gas market share in 2024.

Expected Drivers of Future Revenue Growth for Empire Petroleum (EP)

• Increased Production Volumes from North Dakota Development: Empire Petroleum is actively pursuing its North Dakota development program, including Enhanced Oil Recovery (EOR) efforts in the Starbuck Drilling Program. These initiatives are designed to optimize and significantly increase daily production volumes. For example, initial results from the 30-day peak period of EOR efforts in Starbuck showed a more than 700% increase in production using temporary solutions.
• Expansion of Drilling Operations in Texas: The company has completed the technical evaluation of its Texas region and is preparing to initiate drilling operations in the second half of 2025. This expansion will focus on potential horizontal development in six to seven prospective pay zones, supported by completed infrastructure.
• Deployment of Proprietary Hydrocarbon Vaporization Technology: Empire Petroleum is advancing the final design and preparing for the field deployment of its patented hydrocarbon vaporization technology, which targets sustained heat levels between 550-650 degrees Fahrenheit. This technology is anticipated to optimize production and contribute to revenue growth.
• Strategic Acquisitions of Proved Developed Assets: Management is focused on organic growth combined with targeted acquisitions of proved developed assets that offer synergies with their existing portfolio of wells across New Mexico, North Dakota, Montana, Texas, and Louisiana.
• Favorable Commodity Price Environment: As an oil and gas company, Empire Petroleum's revenue is inherently sensitive to fluctuations in crude oil and natural gas prices. While recent periods have seen lower realized prices, any improvement or sustained strength in commodity prices over the next 2-3 years would serve as a significant driver of increased revenue.

Share Issuance

• In April 2024, Empire Petroleum completed a fully subscribed rights offering, generating approximately $20.66 million in gross proceeds at $5 per share, resulting in the issuance of about 4.13 million shares.
• A rights offering in November 2024 brought in gross proceeds of $10.0 million at $5.05 per share.
• In August 2025, a rights offering generated approximately $2.5 million in gross proceeds, with potential for an additional $2.5 million from future warrant exercises.

Inbound Investments

• Empire Petroleum's largest shareholders, including Chairman Phil Mulacek and Energy Evolution Master Fund, fully participated in the April 2024 rights offering, also exercising their oversubscription rights.
• In September 2025, Phil E. Mulacek, a director and 10% owner, acquired a $4,000,000 convertible note and a warrant to purchase 281,030 shares.
• The company's 2024 10-K highlighted its dependence on its two largest stockholders, Phil Mulacek and Energy Evolution, for financial support to meet obligations.

Capital Expenditures

• For 2024, Empire invested approximately $46.28 million in capital expenditures, primarily focused on its Starbuck Drilling Program in North Dakota.
• In 2023, capital expenditures were approximately $3.0 million.
• For 2025, capital expenditure targets include development and leasehold expansion in North Dakota and Texas.