Empire Petroleum Addresses Its Working Capital Deficit

(9min)

Summary

  • Empire had a $15 million working capital deficit at the end of Q3 2024.
  • The company subsequently increased its credit facility by $10 million and did a $10 million subscription rights offering.
  • Empire is involved in legal and regulatory actions against third-parties that it says are trespassing on its New Mexico assets.
  • Success may allow Empire to recoup associated costs, which may be $30+ million to date.
  • Empire may need to raise additional funds to support its 2025 development efforts.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil pumps and wind mill during sunset.

Torsten Asmus

Empire Petroleum (NYSE:EP) addressed its liquidity via its $10 million subscription rights offering and a $10 million increase to its revolving credit facility. This takes care of its working capital deficit (which was approximately $15 million at

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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