TULSA, Okla. - Empire Petroleum Corporation (NYSE American: EP), an oil and gas company with producing assets across several U.S. states, has successfully completed its rights offering, closing subscriptions on April 10, 2024. The offering was met with strong investor interest, resulting in an oversubscription where demand exceeded the available shares.
Stockholders who participated in the rights offering will receive their basic subscription privilege. However, due to the oversubscription, the additional shares will be allocated on a pro-rata basis, with fractional shares eliminated.
Notably, significant stockholders including Chairman Phil E. Mulacek and Energy Evolution Master Fund, Ltd. fully exercised their subscription rights and their entitlement to oversubscribed shares.
The capital raised from this rights offering is approximately $20.66 million before expenses. Empire plans to utilize these funds to finance various activities including drilling, land acquisitions, seismic surveys, and enhanced oil recovery facilities, as well as for general corporate purposes.
The details of the rights offering are outlined in the prospectus supplements filed with the Securities and Exchange Commission on March 7 and March 28, 2024. Empire Petroleum has a strategic focus on organic growth and the acquisition of developed assets that complement its existing portfolio, which spans New Mexico, North Dakota, Montana, Texas, and Louisiana.
This news is based on a press release statement from Empire Petroleum Corporation and does not include any independent analysis or endorsement of the company's strategies or prospects. The forward-looking statements included in the company's release are subject to a variety of risks and uncertainties that could cause actual results to differ from those projected.
InvestingPro Insights
As Empire Petroleum Corporation (NYSE American: EP) wraps up its successful rights offering, investors may be looking at the company's financial health and market performance to assess its potential.
According to InvestingPro data, Empire Petroleum holds a market capitalization of $145.29 million, which reflects the size of the company in terms of its equity value. Despite the recent investor interest, the company's shares have experienced a significant decline over the past year, with a 52.13% drop in total return.
With a negative P/E ratio reported at -10.91, and an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at -11.55, Empire Petroleum is not currently profitable. This aligns with one of the InvestingPro Tips highlighting that the company has not been profitable over the last twelve months. Moreover, the company's price/book ratio as of the last twelve months of Q4 2023 is 4.12, indicating that the stock may be trading at a high multiple compared to its book value.
For investors looking for a deeper dive into Empire Petroleum's financials and market performance, InvestingPro offers additional tips that can provide a more comprehensive understanding of the company's position.
For example, investors may be interested to know that Empire Petroleum is quickly burning through cash, a critical factor considering the capital-intensive nature of the oil and gas industry. This information could be particularly relevant given the company's recent capital raise aimed at funding its operations and growth initiatives.
To explore these insights further and access a wider array of InvestingPro Tips, readers can visit the InvestingPro platform for Empire Petroleum. There are more tips available to help investors make informed decisions. Additionally, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, adding value to their investment research process.
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