Overview

• U.S. oil and gas producer's Q1 product revenue fell 15% yr/yr due to lower production and prices

• Q1 net loss widened yr/yr, with adjusted EBITDA remaining negative

• Production volumes impacted by operational issues and weather disruptions, expected to recover in Q2

Outlook

• Empire expects Texas gas volumes to rise in Q2-2026 as more wells are reactivated

• Company anticipates drilling and casing three Louisiana wells by end of Q2-2026

• Empire expects regulatory resolution in New Mexico to reduce operating expenses

Result Drivers

• OPERATIONAL AND WEATHER DISRUPTIONS - Lower production volumes in North Dakota and New Mexico, and weather-related force majeure in Texas, weighed on Q1 results

• LOWER REALIZED PRICES - Lower prices across all commodities contributed to the decline in product revenue

• HIGHER WORKOVER EXPENSES - Increased workover expenses in Texas due to gas development program added to costs

Company press release: ID:nBw99zQzMa

Key Details

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