Empire Petroleum : 4Q 2022 Earnings Call

Empire Petroleum

Corporation

4TH QUARTER 2022

www.empirepetroleumcorp.com

NYSE American: EP

Disclaimer

Forward Looking Statements

This presentation has been prepared by Empire Petroleum Corporation (the "Company") to assist Investor in making their own evaluation of the Company and any proposed transaction between the Company and Investor and between the parties listed in this document. This presentation does not purport to be all-inclusive or contain all of the information needed to evaluate a transaction or an investment in the Company. In all cases, interested parties should conduct their own investigation and analysis of the Company, any of their prospects and the data set forth in this information. The Company makes no representation or warranty as to the accuracy or completeness of the information contained herein.

The information contained herein includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates, and projections reflect various assumptions by management of the Company concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates, or projections.

All statements, other than statements of historical fact, contained in this report are forward-looking statements. Forward-looking statements generally are accompanied by words such as "anticipate," "believe," "estimate," "expect," "may," "might," "potential," "project" or similar statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct.

Factors that could cause results to differ materially from the results discussed in such forward-looking statements include, but are not limited to: (i) unforeseen capital requirements, (ii) unforeseen or increased costs incurred in exploration and development, (iii) unforeseen engineering, mechanical or technological difficulties in drilling wells, (iv) uncertainty of exploration results, (v) operating hazards, (vi) competition from other natural resource companies, (vii) fluctuations of prices for oil and gas, (viii) the effects of governmental and environmental regulation, and (ix) general economic conditions and other risks.

Non-GAAP Reconciliation

Certain financial information included in Empire's financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include "Adjusted Net Income", "EBITDA" and "Adjusted EBITDA". These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.

The Company defines Adjusted EBITDA as net income (loss) plus net interest expense, depreciation, depletion and amortization ("DD&A"), accretion, amortization of loan issuance costs, ROU assets, and discount on convertible notes, and other non-cash items. Company management believes this presentation is relevant and useful because it helps investors understand Empire's operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

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Key Takeaways

• Recorded full year revenue of $52.9MM and net income of $7.1MM
• • 4Q 2022 revenue of $10.7MM
• Ended 2022 in a strong financial position with $12.2MM of liquidity (including $11.9MM of cash), working capital of $5.1MM and debt of $7.2MM

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Increase of sales volumes by 46%, sequential year over year

Net Debt now 2% of market capitalization

Increase of Adjusted EBITDA by 231% sequential year over year

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Operations Update

Operating Strategy - Forward Plan

▪ Ensure production growth with a cost-effective

BARREL COMPOSITION (1)

capital program in 2023 and 2024

• • Apply lessons learned from multiple testing methods during the pilot programs in 2022 to the development phase
• We see solid organic production increase on our core oil assets
• Focus on waterflood performance and efficient RTP on wells
• 2023 will be the first major drilling expansion for Empire

(1) Barrel composition based on 4Q 2022 sales volumes

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