Empire Petroleum extends rights offering deadline

TULSA, Okla. - Empire Petroleum Corporation (NYSE American: EP), an oil and gas company with assets across multiple U.S. states, has announced an extension to its subscription rights offering aimed at raising up to $10 million. This move comes in response to the impact of Hurricane Milton and requests from shareholders for additional time to participate and manage their finances for the offering.

The rights offering, initially set to expire earlier, will now close at 5:00 p.m. Eastern Time on October 24, 2024. Empire has granted each shareholder as of September 30, 2024, one subscription right per share owned, enabling them to purchase additional shares at $5.05 each. These rights are non-transferable and will not be listed on any exchange.

Key shareholders, including Chairman Phil E. Mulacek and Energy Evolution Fund, Ltd., have signaled their intention to fully subscribe to their entitlements and to exercise over-subscription rights for additional shares, subject to availability.

Interested shareholders have been provided with a prospectus, supplemental materials, and a certificate to exercise their rights. Empire will issue an additional prospectus supplement reflecting the extended offering terms. Shareholders looking to exercise their rights must submit completed certificates and payment to the Securities Transfer Corporation, the subscription agent.

Empire Petroleum, headquartered in Tulsa, Oklahoma, focuses on the growth and acquisition of developed oil and gas assets, currently operating in New Mexico, North Dakota, Montana, Texas, and Louisiana. The company's strategic approach centers on organic growth and the integration of assets with synergies to its existing portfolio.

The details of the rights offering are outlined in the prospectus supplements filed with the Securities and Exchange Commission on September 30, 2024, and October 10, 2024. For further information, shareholders may contact the Securities Transfer Corporation.

This announcement is not an offer to sell or a solicitation for the purchase of securities and is made in compliance with state securities laws.

The information in this article is based on a press release statement from Empire Petroleum Corporation.

In other recent news, Empire Petroleum Corporation has initiated a rights offering with the goal of raising approximately $10 million. The oil and gas company has granted one subscription right per share to its common stockholders as of the close of business on September 30, 2024, enabling them to purchase additional shares at $5.05 each. The offering, not listed on any exchange, requires stockholders to own at least 16 shares to be eligible to purchase one whole share.

The company's largest shareholders, Chairman Phil E. Mulacek and Energy Evolution Fund, Ltd., have indicated their intention to fully subscribe to their rights and exercise their over-subscription rights. The rights offering, detailed in a prospectus supplement filed with the SEC, is expected to conclude by 5:00 p.m., Eastern Time, on October 16, 2024, unless it is extended or terminated earlier.

These are recent developments within Empire Petroleum, a company that focuses on organic growth and strategic acquisitions. The offering is subject to registration or qualification under the securities laws of any state where such an offer or sale would be unlawful.

InvestingPro Insights

Empire Petroleum Corporation's recent decision to extend its subscription rights offering comes at a critical time for the company, as revealed by InvestingPro data. With a market capitalization of $163.32 million, Empire is operating in a challenging financial environment. The company's revenue for the last twelve months as of Q2 2024 stood at $42.87 million, with a quarterly revenue growth of 29.58% in Q2 2024, indicating some positive momentum despite overall challenges.

InvestingPro Tips highlight that Empire is "quickly burning through cash" and that "short term obligations exceed liquid assets." These factors likely contribute to the company's decision to raise additional capital through the rights offering. The tip that the company "operates with a moderate level of debt" suggests that while Empire is not overleveraged, it may be seeking to strengthen its balance sheet through this capital raise.

It's worth noting that Empire is "not profitable over the last twelve months," with an adjusted operating income of -$12.92 million for the same period. This aligns with the company's focus on growth and acquisition, as outlined in the article, but also underscores the importance of the current fundraising efforts.

For investors considering participation in the rights offering, it's crucial to note that Empire's stock is trading at $5.16, which is 46.95% of its 52-week high. The InvestingPro Fair Value estimate stands at $4.31, suggesting careful consideration of the offering price of $5.05 per share.

InvestingPro offers additional tips and insights that could be valuable for investors analyzing Empire Petroleum's financial health and growth prospects. With 8 more tips available on the InvestingPro product, subscribers can gain a more comprehensive understanding of the company's financial position and market performance.

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