Empire Petroleum extends expiration date of rights offering

TULSA - Empire Petroleum Corporation (NYSE American:EP), currently valued at $166 million in market capitalization, announced Thursday it has extended the expiration date of its previously announced subscription rights offering, which aims to raise gross proceeds of up to approximately $5.0 million. According to InvestingPro data, the company’s stock is currently trading near Fair Value, with shares down over 35% year-to-date.

The rights offering, originally set to expire earlier, will now conclude at 5:00 p.m. Eastern Time on July 30, 2025. The company stated it extended the deadline to allow stockholders more time to consider participation and arrange financing. This extension comes as InvestingPro analysis shows Empire facing liquidity challenges, with current assets covering only 48% of short-term obligations.

Under the offering terms, Empire is distributing one subscription right for each share of common stock held as of July 10, 2025. Each subscription right entitles holders to purchase one unit at $5.30, consisting of 0.0139 shares of common stock and one warrant exercisable for 0.0136 shares at $5.46 per share. Stockholders must hold at least 72 shares to receive rights to purchase at least one unit.

Phil E. Mulacek, Chairman of Empire’s Board and one of its largest shareholders, has indicated his intention to fully participate in the offering and exercise his over-subscription rights for any unsubscribed securities.

The rights offering is described in the prospectus supplement filed with the Securities and Exchange Commission on July 10, 2025, and supplemented by an additional filing on July 24, 2025.

Empire Petroleum is an oil and gas company with current producing assets across New Mexico, North Dakota, Montana, Texas, and Louisiana. The company generated revenue of $42.8 million in the last twelve months, with a gross profit margin of 31%. InvestingPro subscribers can access 8 additional key insights about Empire’s financial health and growth prospects.

The subscription rights and warrants will not be listed for trading on any stock exchange or market.

In other recent news, Empire Petroleum Corporation announced the launch of a subscription rights offering to raise up to $5 million in gross proceeds. The company has set July 10, 2025, as the record date for this offering. Shareholders will receive one subscription right per share of common stock they hold. Each subscription right allows the purchase of one unit at $5.30, which includes 0.0139 shares of common stock and a warrant exercisable for 0.0136 shares at $5.46 per share. This move is aimed at generating additional capital, with up to $2.5 million expected from warrant exercises. The offering is part of Empire Petroleum’s strategic financial initiatives. These recent developments highlight the company’s efforts to strengthen its financial position.

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