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Empire Petroleum (Empire Petroleum) Beneish M-Score : -1.59 (As of May. 12, 2024)


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What is Empire Petroleum Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.59 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Empire Petroleum's Beneish M-Score or its related term are showing as below:

EP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84   Med: -0.29   Max: 8.91
Current: -1.59

During the past 13 years, the highest Beneish M-Score of Empire Petroleum was 8.91. The lowest was -2.84. And the median was -0.29.


Empire Petroleum Beneish M-Score Historical Data

The historical data trend for Empire Petroleum's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Empire Petroleum Beneish M-Score Chart

Empire Petroleum Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.91 - 1.02 -2.84 -1.59

Empire Petroleum Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.84 -3.31 -2.90 -2.70 -1.59

Competitive Comparison of Empire Petroleum's Beneish M-Score

For the Oil & Gas E&P subindustry, Empire Petroleum's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Empire Petroleum's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Empire Petroleum's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Empire Petroleum's Beneish M-Score falls into.



Empire Petroleum Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Empire Petroleum for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4252+0.528 * 3.3355+0.404 * 0.3256+0.892 * 0.7535+0.115 * 1.004
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6337+4.679 * -0.027425-0.327 * 1.0006
=-1.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $8.36 Mil.
Revenue was 9.914 + 10.332 + 9.777 + 10.119 = $40.14 Mil.
Gross Profit was 0.15 + 1.762 + 1.246 + 2.218 = $5.38 Mil.
Total Current Assets was $18.75 Mil.
Total Assets was $92.62 Mil.
Property, Plant and Equipment(Net PPE) was $72.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.52 Mil.
Selling, General, & Admin. Expense(SGA) was $15.18 Mil.
Total Current Liabilities was $25.05 Mil.
Long-Term Debt & Capital Lease Obligation was $5.14 Mil.
Net Income was -4.797 + -2.748 + -2.465 + -2.46 = $-12.47 Mil.
Non Operating Income was 1.254 + -1.185 + -0.045 + -0.066 = $-0.04 Mil.
Cash Flow from Operations was -3.93 + 2.027 + -2.918 + -5.067 = $-9.89 Mil.
Total Receivables was $7.78 Mil.
Revenue was 11.022 + 13.996 + 15.717 + 12.54 = $53.28 Mil.
Gross Profit was 3.107 + 4.592 + 9.467 + 6.632 = $23.80 Mil.
Total Current Assets was $22.74 Mil.
Total Assets was $71.55 Mil.
Property, Plant and Equipment(Net PPE) was $45.31 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.21 Mil.
Selling, General, & Admin. Expense(SGA) was $12.33 Mil.
Total Current Liabilities was $17.62 Mil.
Long-Term Debt & Capital Lease Obligation was $5.69 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(8.355 / 40.142) / (7.78 / 53.275)
=0.208136 / 0.146035
=1.4252

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(23.798 / 53.275) / (5.376 / 40.142)
=0.446701 / 0.133925
=3.3355

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (18.745 + 72.396) / 92.616) / (1 - (22.735 + 45.311) / 71.545)
=0.015926 / 0.048906
=0.3256

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=40.142 / 53.275
=0.7535

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(2.213 / (2.213 + 45.311)) / (3.521 / (3.521 + 72.396))
=0.046566 / 0.04638
=1.004

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(15.179 / 40.142) / (12.331 / 53.275)
=0.378133 / 0.231459
=1.6337

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((5.141 + 25.05) / 92.616) / ((5.688 + 17.621) / 71.545)
=0.32598 / 0.325795
=1.0006

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-12.47 - -0.042 - -9.888) / 92.616
=-0.027425

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Empire Petroleum has a M-score of -1.59 signals that the company is likely to be a manipulator.


Empire Petroleum Beneish M-Score Related Terms

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Empire Petroleum (Empire Petroleum) Business Description

Traded in Other Exchanges
N/A
Address
2200 South Utica Place, Suite 150, Tulsa, OK, USA, 74114
Empire Petroleum Corp is engaged in the exploration and development of oil and natural gas in the United States. All of the company's producing properties are located in Louisiana, Texas, North Dakota, and New Mexico. It generates revenue from Oil and Gas sales.
Executives
Marchive Benjamin J. Ii director 1021 MAIN STREET, SUITE 2626, HOUSTON TX 77002-6516
Energy Evolution Master Fund, Ltd. 10 percent owner 25025 I-45 NORTH, SUITE 420, THE WOODLANDS TX 77380
J Kevin Vann officer: VP, Finance/Strategic Planning ONE WILLIAMS CENTER, SUITE 3800, TULSA OK 74172
Phil E Mulacek 10 percent owner 25025 I 45 NORTH, SUITE 420, THE WOODLANDS TX 77380
Mason H. Matschke director 25025 I-45 NORTH, SUITE 420, THE WOODLANDS TX 77380
Faulkner Stephen L Jr officer: Controller and Chief Acctg Ofc 3500 ONE WILLIAMS CENTER, TULSA OK 74172
Eugene J Sweeney officer: Chief Operating Officer 151 W BURTON PL, CHICAGO IL 60610
Michael R. Morrisett 10 percent owner 3803 S. TRENTON AVENUE, TULSA OK 74105-3324
Thomas W. Pritchard officer: Chief Executive Officer 15798 SPYGLASS HILL LOOP, GAINESVILLE VA 20155
Andrew Lloyd Lewis director 2200 S. UTICA PLACE, SUITE 150, TULSA OK 74114
Angela M Baker officer: Chief Accounting Officer 2200 S. UTICA PLACE, SUITE 150, TULSA OK 74114
Puckett Land Co 10 percent owner 5460 S. QUEBEC ST., SUITE 250, GREENWOOD VILLAGE CO 80111
Tony Kamin director, 10 percent owner 619 BLUFF STREET, GLENCOE IL 60022
Gary C Adams 10 percent owner 1437 S. BOULDER AVENUE, SUITE 930, TULSA OK 74119
Empire Petroleum Holdings, Llc 10 percent owner 3803 S. TRENTON AVENUE, TULSA OK 74105-3324

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