Amplify Energy Corp.

What they do

Amplify acquires, develops, exploits and produces oil and natural gas properties and reports a single business segment. Following the 2025 sales of its Eagle Ford (non-operated), East Texas/North Louisiana and Oklahoma assets, remaining properties are Bairoil and Beta. At December 31, 2025 the company held estimated proved reserves of 38.1 MMBoe, about 93% oil and 7% NGLs, 65% proved developed, and produced from 204 gross (204 net) wells with a 100% average working interest as operator of record. Average net production for Q4 2025 was 6.6 MBoe/d.

Revenue drivers

• Oil sales — Oil is the dominant revenue line: $52.5 million of Q2 2026 total oil and natural gas revenues of $52.6 million, with 615 MBbls produced in the quarter.
• NGL and natural gas sales — Minor post-divestiture: Q2 2026 NGL sales were $0.2 million and natural gas sales were negative $0.1 million, versus $5.6 million and $11.4 million respectively in Q2 2025 before the asset sales.
• Beta field (offshore Southern California) — Operated Beta unit in federal waters about 11 miles offshore from the Port of Long Beach; the 10-K cites reserve additions tied to new Beta locations, and two new Joulters fault block wells were completed in Q2/Q3 2026.
• Bairoil (Rockies) — The company's other remaining property; Amplify is evaluating Bairoil's potential role in carbon storage and low-carbon initiatives and amended its CO2 purchase agreement effective June 1, 2026.

Recent performance

Q2 2026 oil and natural gas sales were $52.6 million, down from $66.8 million in Q2 2025, which the company attributes to 2025 divestitures. Q2 2026 net income was $17.3 million versus $6.4 million in Q2 2025, and first-half 2026 net loss was $20.8 million versus $0.5 million of net income in first-half 2025. Q2 2026 production averaged 6.8 Mbopd (100% oil), up about 6% from the prior quarter, with net cash provided by operating activities of $2.8 million and Adjusted EBITDA of $8.6 million. At June 30, 2026 the company had $21.2 million of cash, no outstanding revolver borrowings and $36.2 million of total liquidity. Q2 2026 included a $9.0 million gain on commodity derivative instruments, while first-half 2026 included $36.8 million of derivative losses.

Strategy

Amplify has narrowed the portfolio to Bairoil and Beta through roughly $251 million of 2025 asset sales (Eagle Ford, East Texas/North Louisiana, Oklahoma and other interests). At Beta it is drilling development wells, having completed the C29 well in June 2026 with a peak IP30 of about 525 Bopd and the C16 well in July 2026 with a peak IP30 of about 550 Bopd, and it obtained BSEE end-of-life royalty relief effective May 1, 2026. At Bairoil it is pursuing carbon storage and low-carbon initiatives, including an amended CO2 purchase agreement effective June 1, 2026 that is expected to reduce CO2 costs by about $5.0 million per year. The board approved a share repurchase program of up to $15.0 million running from August 11, 2026 through December 31, 2026. The company had no debt outstanding at December 31, 2025 under a credit facility with a $25.0 million borrowing base and $15.0 million of elected commitments maturing December 31, 2028.

Risks

• Concentrated asset base — After the 2025 divestitures, all remaining value sits in only two properties, Bairoil and Beta, so operational problems at either would affect essentially the whole company.
• Commodity price and derivative volatility — Swings in oil and gas prices drove a $9.0 million derivative gain in Q2 2026 versus $36.8 million of derivative losses in the first half, producing a $17.3 million quarterly profit against a $20.8 million half-year loss.
• Royalty relief conditions — Beta royalty relief can be suspended or ended if the rolling 12-month weighted average NYMEX oil and Henry Hub gas price exceeds $79.65 per BOE, or if monthly production doubles the qualifying months' average for 12 consecutive months.
• Offshore operational and regulatory exposure — Beta production is in federal Pacific Outer Continental Shelf waters regulated by BSEE and BOEM, adding permitting, compliance and environmental risk to a business now largely dependent on that field.

Outlook

Management points to the two new Beta wells and royalty relief as having meaningfully increased net production, revenue and cash flow at Beta, with royalty relief adding over 600 bbls/d of average net production and about $3.0 million of revenue and cash flow since May 1, 2026. At Bairoil, the amended CO2 agreement is expected to cut CO2 costs by about $5.0 million per year and supports the carbon storage evaluation. The board's up to $15.0 million repurchase program reflects its view that the shares trade at a discount to net asset value, and the company ended Q2 2026 with no revolver borrowings and $36.2 million of liquidity.