Amplify Energy Announces Strategic Initiatives Update, Second Quarter 2025 Results, and Updated Full-Year 2025 Guidance

2025-08-06

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada

HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today an update on its strategic initiatives, operating and financial results for the second quarter of 2025, and updated full-year 2025 guidance.

Strategic Initiatives Update

As previously announced, Amplify remains committed to simplifying its portfolio, focusing capital and management resources on the Company’s most attractive investment opportunities and creating value for shareholders. Consistent with this strategic shift, Amplify intends to become more oil-weighted, reduce debt, lower operating costs, and streamline the organization.

To accomplish these objectives, the Company has undertaken several initiatives, including:

Engaged TenOaks Energy Advisors to explore market interest for the complete divestiture of Amplify’s assets in East Texas and Oklahoma. TenOaks has opened a data room and plans to solicit offers for the assets later in the third quarter. Divested its non-operated assets in the Eagle Ford for $23 million, subject to post-closing adjustments. The transaction closed on July 1, 2025, with an effective date of June 15, 2025. Implemented changes to the Board of Directors and senior management: Appointed Clint Coghill, Amplify’s largest shareholder, to its Board of Directors on May 16, 2025 Reduced the size of the Board from eight to five directors at the annual meeting held on June 13, 2025 Promoted Dan Furbee to Chief Executive Officer and Jim Frew to President and Chief Financial Officer, effective July 22, 2025

Dan Furbee, the Company’s Chief Executive Officer, stated, “We are off to a strong start implementing various strategic initiatives, and we are optimistic that these initiatives will yield positive results for our stakeholders. While substantial efforts lie ahead, we believe that monetizing assets to reduce our operating footprint, paying down debt, focusing our resources on Beta and Bairoil, and streamlining the organization, best position the Company to generate significant value for our shareholders.”

Key Highlights

During the second quarter of 2025, the Company: Achieved average total production of 19.1 MBoepd, an increase of approximately 7% compared to the prior quarter Generated net cash provided by operating activities of $23.7 million and net income of $6.4 million Delivered Adjusted EBITDA of $19.0 million and an Adjusted Net Loss of $2.3 million At Beta, completed the C54 well and brought it online in late-April The C54 has cumulative gross production of 90,000 barrels of oil (an average gross production of approximately 920 Bopd), and the well is currently producing approximately 850 gross Bopd. At current pricing, Amplify expects the well to pay out in approximately eight months with an IRR greater than 100%.

In East Texas: Completed and brought online four gross (one net) non-operated wells (i.e., two Haynesville completions and two Cotton Valley completions). The four wells are currently producing 13 Mmcfe/d net to Amplify’s interest. At current gas prices, Amplify expects these wells to pay out in less than 18 months with IRR’s greater than 45%. Sold additional undeveloped Haynesville interests, generating $1.5 million in proceeds, in May 2025. Over the course of the last seven months, Amplify has generated proceeds of $9.2 million related to Haynesville acreage transactions, while retaining a 10% working interest in two newly created areas of mutual interest (“AMI”) in the Haynesville play of East Texas.

Generated $1.1 million of Adjusted EBITDA at Magnify Energy Services, Amplify’s wholly owned subsidiary (“Magnify”) On May 29, 2025, the Company completed its semi-annual borrowing base redetermination 1 As of June 30, 2025, Amplify had $130.0 million outstanding under the revolving credit facility. Net debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.5x 2 .

(1) On May 29, 2025, semi-annual redetermination was affirmed at $145 million borrowing base. Subsequent to the Eagle Ford divesture, the borrowing base was reduced to $135 million.

(2) Net debt as of June 30, 2025, consisting of $130 MM outstanding under its revolving credit facility with ~$0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the second quarter of 2025.

Mr. Furbee commented, “Despite a lower commodity price environment, Amplify was able to generate strong second quarter operating and financial results. Recently drilled wells at Beta and East Texas came on-line in the second quarter and early third quarter respectively, and we are very pleased with the results thus far. The C54 well, drilled from the Eureka platform, has the highest initial production rates of the four wells we have brought on-line since we started the Beta development program early last year. The non-operated wells in East Texas, drilled by our partners, are exceeding our forecasts. These capital investments will generate attractive returns for our investors and give us confidence in our future development programs.”

Mr. Furbee continued, “Over the past few quarters, Amplify has closed several transactions in East Texas and the Eagle Ford. The proceeds from those sales have allowed us to pay down debt and have given us the flexibility to ramp up development at Beta. Successfully monetizing our East Texas and Oklahoma assets would allow us to further accelerate this plan.”

Key Financial Results

During the second quarter of 2025, the Company reported net income of approximately $6.4 million compared to a net loss of $5.9 million in the prior quarter. The increase was primarily attributable to a gain on commodity derivatives. Excluding the impact of the derivatives gain, and additional other one-time impacts, Amplify generated an Adjusted Net Loss of $2.3 million in the second quarter of 2025.

Second quarter 2025 Adjusted EBITDA was $19.0 million, which was comparable to the prior quarter despite significantly lower commodity prices. Free cash flow was negative $10.1 million for the second quarter, which was in-line with expectations, due to higher capital investments in the first half of the year. Amplify intends to invest approximately 95% of its 2025 capital in the first three quarters of the year.

| | | Second Quarter | First Quarter | | | | | | $ in millions | | 2025 | 2025 | | | | | | Net income (loss) | | $6.4 | | ($5.9 | ) | | | | Net cash provided by operating activities | | $23.7 | | $25.5 | | | | | Average daily production (MBoe/d) | | | 19.1 | | | 17.9 | | | Total revenues excluding hedges | | $68.4 | | $72.1 | | | | | Adjusted EBITDA (a non-GAAP financial measure) | $19.0 | | $19.4 | | | | | | Adjusted net income (loss), (a non-GAAP financial measure) | | ($2.3 | ) | $3.8 | | | | | Total capital | | $25.5 | | $23.1 | | | | | Free Cash Flow (a non-GAAP financial measure) | ($10.1 | ) | ($7.2 | ) | | | | | | | | | | | | |

Revolving Credit Facility and Liquidity Update

On May 29, 2025, the Company completed its semi-annual borrowing base redetermination, which was reaffirmed at $145.0 million. Following the Eagle Ford divestiture, which was announced on July 1, the borrowing base was reduced to $135.0 million. As of June 30, 2025, Amplify had total debt of $130.0 million outstanding under its revolving credit facility. Net debt to LTM Adjusted EBITDA was 1.5x (net debt as of June 30, 2025 and 2Q25 LTM Adjusted EBITDA).

The next borrowing base redetermination is expected in the fourth quarter of 2025.

Corporate Production and Pricing

During the second quarter of 2025, average daily production was approximately 19.1 Mboepd, an increase of 1.2 Mboepd from the prior quarter. All five assets increased production compared to the prior quarter including at East Texas where our new non-operated wells were delayed coming online approximately six weeks. Despite a June 15 th effective date for the sale of our Eagle Ford assets (i.e. prior to the end of the second quarter), production was up compared to the prior quarter due to new wells coming on-line. At Bairoil, production increased slightly even though the field was shut-in for seven days for our planned plant turnaround. At Beta, production increased as previously shut-in wells were returned to production and the recently drilled C54 well was brought online in late-April.

The Company’s product mix for the quarter was 48% crude oil, 16% NGLs, and 36% natural gas. Amplify has steadily increased its oil weighting consistent with our strategy. In the second quarter of 2024, crude oil production, as a percentage of total production, was 41% compared to 48% in the second quarter of 2025.

| | | | Three Months | | Three Months | | | | | | | Ended | | Ended | | | | | | | June 30, 2025 | | March 31, 2025 | | | | | | | | | | | | | Production volumes - MBOE: | | | | | | | | | | Bairoil | 286 | | | 280 | | | | | Beta | 355 | | | 315 | | | | | Oklahoma | 404 | | | 393 | | | | | East Texas / North Louisiana | 584 | | | 570 | | | | | Eagle Ford (Non-op) | 111 | | | 49 | | | | | | Total - MBoe | 1,740 | | | 1,607 | | | | | Total - MBoe/d | 19.1 | | | 17.9 | | | | | % - Liquids | 64 | % | | 62 | % | | | | | | | | | |

Total oil, natural gas and NGL revenues for the second quarter of 2025 were approximately $66.8 million, before the impact of derivatives. Crude oil, NGL and natural gas prices were all lower in the second quarter compared to the first quarter. The Company realized a net gain on commodity derivatives of $4.8 million during the second quarter.

The following table sets forth information regarding average realized sales prices for the periods indicated:

| | | Crude Oil ($/Bbl) | NGLs ($/Bbl) | Natural Gas ($/Mcf) | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Three Months Ended March 31, 2025 | | Three Months Ended June 30, 2025 | | Three Months Ended March 31, 2025 | | Three Months Ended June 30, 2025 | | Three Months Ended March 31, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Average sales price exclusive of realized derivatives and certain deductions from revenue | | $ | 60.01 | | | $ | 67.82 | | | $ | 21.45 | | | $ | 25.24 | | | $ | 3.01 | | | $ | 3.87 | | | Realized derivatives | | | 4.83 | | | | 0.49 | | | | - | | | | - | | | | 0.21 | | | | 0.04 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Average sales price with realized derivatives exclusive of certain deductions from revenue | | $ | 64.84 | | | $ | 68.31 | | | $ | 21.45 | | | $ | 25.24 | | | $ | 3.22 | | | $ | 3.91 | | | Certain deductions from revenue | | | - | | | | - | | | | (1.63 | ) | | | (1.78 | ) | | | 0.03 | | | | 0.02 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Average sales price inclusive of realized derivatives and certain deductions from revenue | | $ | 64.84 | | | $ | 68.31 | | | $ | 19.82 | | | $ | 23.46 | | | $ | 3.25 | | | $ | 3.93 | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Costs and Expenses

Lease operating expenses in the second quarter of 2025 were approximately $38.6 million, a $1.2 million increase compared to the prior quarter and in-line with internal projections. Lease operating expenses were $22.20 per Boe, a decrease of approximately 5%, compared to $23.28 per Boe in the prior quarter. Lease operating expenses are expected to decrease in the second half of 2025 after cost savings projects are completed at Bairoil, and fewer expense workovers are conducted later in the year. With the sale of the Eagle Ford assets and the planned reduction in expenditures in the second half of 2025, we are guiding lease operating expenses to a midpoint of approximately $137 million. Lease operating expenses do not reflect $1.1 million of Adjusted EBITDA generated by Magnify in the second quarter.

Severance and ad valorem taxes in the second quarter were approximately $4.3 million, a decrease of $0.1 million compared to $4.4 million in the prior quarter. Severance and ad valorem taxes as a percentage of revenue were approximately 6.4% in the second quarter. The Company anticipates that taxes as a percentage of revenue will remain within its previously announced guidance range for 2025.

Amplify incurred $4.7 million, or $2.71 per Boe, of gathering, processing and transportation expenses in the second quarter, compared to $4.3 million, or $2.67 per Boe, in the prior quarter.

Cash G&A expenses in the second quarter were $6.8 million, down 7% compared to the first quarter of 2025, and in-line with expectations.

Depreciation, depletion, and amortization expense in the second quarter totaled $9.8 million, or $5.61 per Boe, compared to $8.5 million, or $5.29 per Boe, in the prior quarter.

Net interest expense was $3.6 million in the second quarter, an increase of $0.1 million compared to $3.5 million in the prior quarter.

Amplify recorded a $0.5 million current income tax expense for the second quarter of 2025.

Capital Investment Update

Cash capital investment during the second quarter of 2025 was approximately $25.5 million. During the second quarter, the Company’s capital allocation was approximately 52% for development drilling, recompletions and facility projects at Beta, and approximately 25% for non-operated development projects in East Texas and the Eagle Ford, with the remainder distributed across the Company’s other assets. As previously stated, Amplify intends to invest approximately 95% of its 2025 capital by the end of third quarter 2025. Capital investments in the second half of 2025 (estimated between $21 million to $31 million) are forecasted to drop significantly compared to total capital investments of $48.6 million in the first half of 2025. The decrease is due to the completion of non-operated development drilling investments in East Texas and Eagle Ford, the front loading of investments in the Beta facility projects, and the Bairoil plant turnaround upgrades already completed.

The following table details Amplify’s capital invested during the second quarter of 2025:

| | | Second Quarter | | Year to Date | | | | | | | | 2025 Capital | | 2025 Capital | | | | | | | | ($ MM) | | ($ MM) | | | | | | Bairoil | | $ | 4.5 | | | $ | 5.8 | | | Beta | | $ | 13.3 | | | $ | 26.1 | | | Oklahoma | | $ | 1.0 | | | $ | 2.5 | | | East Texas / North Louisiana | | $ | 2.8 | | | $ | 6.2 | | | Eagle Ford (Non-op) | | $ | 3.6 | | | $ | 7.5 | | | Magnify Energy Services | | $ | 0.3 | | | $ | 0.6 | | | Total Capital Invested | | $ | 25.5 | | | $ | 48.6 | | | | | | | | | | | |

2025 Operations & Development Plan

The sale of our Eagle Ford assets and the continued outperformance of the three Beta D-Sand wells completed over the past 12 months have generated additional liquidity. Consequently, we are revising guidance to reflect increased Beta development resulting from the drilling and completion of at least two wells in the second half of 2025.

Amplify is currently drilling the C08 well from the Eureka platform, and we anticipate completing the well in late August. The C08 well is a direct offset to the C54 and C59 wells, which have both significantly outperformed the Beta type curve. The C59 well has been online for approximately 10 months and has cumulative production of 130 Mbo and is currently producing approximately 550 gross Bopd. The C54 well has been online for approximately 100 days, has cumulative production of 90 Mbo and is currently producing approximately 850 gross Bopd. Both wells are projected to generate greater than 100% IRRs.

Aside from drilling capital at Beta, Amplify has been investing in facility and equipment upgrades needed for the potential acceleration of the Beta development program. The projects include pipeline and pump upgrades to handle additional produced oil and water volumes, drilling rig upgrades for increased drilling activity, and power upgrades for future power demands.

In the first half of 2025, Amplify invested approximately $6.2 million in East Texas. The majority of this investment was focused on non-operated development drilling. Early in the third quarter, Amplify’s partners brought online two Haynesville and two Cotton Valley completions which are currently producing 13 Mmcfe/d net to Amplify’s interest. At current gas prices, Amplify expects these four wells to pay out in less than 18 months with IRR’s greater than 45%.

Furthermore, the Company now maintains several AMIs with counterparties in the East Texas region that provide the opportunity for participation in additional Haynesville and Cotton Valley development. Operators in the area are taking advantage of strong natural gas prices and favorable economics, and the Company anticipates more activity in this area.

At Bairoil, in addition to enhancing our water-alternating-gas injection performance, the Company has been investing in facility projects at our CO2 gas plant intended to significantly reduce power usage and costs (the largest component of our lease operating expenses at Bairoil). The cost reductions are projected to take effect later in the third quarter and will help offset the power cost increases resulting from higher electric utility rates in Wyoming.

Additionally, at Bairoil, the Company obtained certification under the EOR Operations Management Plan in accordance with the CSA ANSI/ISO Standard. This certification allows portions of CO2 utilized in the field to qualify for Section 45Q tax credits and could enable Amplify to create additional value from the asset through numerous opportunities that the Company is currently evaluating.

Updated Full-Year 2025 Guidance

Based on the recently announced sale of the Eagle Ford assets and the additional development at Beta late in the year, Amplify is providing updated guidance for 2025. The following guidance is subject to the cautionary statements and limitations described under the "Forward-Looking Statements" caption at the end of this press release. Amplify's updated 2025 guidance is based on its current expectations regarding capital investment and full-year 2025 commodity prices for crude oil of approximately $65.00/Bbl (WTI) and natural gas of $3.50/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products.

A summary of the guidance is presented below:

| | May 12, 2025 | | August 6, 2025 | | | | | | | Previous Guidance | | Updated Guidance | | | | | | | | | | | | | | | | FY 2025E | | FY 2025E | | | | | | | | | | | | | | | | | | | | | | | | | Low | | High | | Low | | High | | | | | | | | | | | Net Average Daily Production | | | | | | | | | Oil (MBbls/d) | 8.3 | - | 8.9 | | 8.3 | - | 8.9 | | NGL (MBbls/d) | 3.0 | - | 3.3 | | 2.9 | - | 3.2 | | Natural Gas (MMcf/d) | 45.0 | - | 50.0 | | 43.0 | - | 48.0 | | Total (MBoe/d) | 19.0 | - | 20.5 | | 18.5 | - | 20.0 | | | | | | | | | | | Commodity Price Differential / Realizations (Unhedged) | | | | | | | | | Oil Differential ($ / Bbl) | ($3.25) | - | ($4.25) | | ($4.00) | - | ($5.00) | | NGL Realized Price (% of WTI NYMEX) | 27% | - | 31% | | 28% | - | 32% | | Natural Gas Realized Price (% of Henry Hub) | 85% | - | 92% | | 90% | - | 97% | | | | | | | | | | | Other Revenue | | | | | | | | | Magnify Energy Services ($ MM) | $4 | - | $6 | | $4 | - | $6 | | Other ($ MM) | $2 | - | $3 | | $2 | - | $3 | | Total ($ MM) | $ 6 | - | $ 9 | | $ 6 | - | $ 9 | | | | | | | | | | | Gathering, Processing and Transportation Costs | | | | | | | | | Oil ($ / Bbl) | $0.65 | - | $0.85 | | $1.00 | - | $1.20 | | NGL ($ / Bbl) | $2.75 | - | $4.00 | | $2.75 | - | $4.00 | | Natural Gas ($ / Mcf) | $0.55 | - | $0.75 | | $0.60 | - | $0.75 | | Total ($ / Boe) | $ 2.25 | - | $ 2.85 | | $ 2.25 | - | $ 2.85 | | | | | | | | | | | Average Costs | | | | | | | | | Lease Operating ($ / Boe) | $18.50 | - | $20.50 | | $18.50 | - | $20.50 | | Taxes (% of Revenue) (1) | 6.0% | - | 7.0% | | 6.0% | - | 7.0% | | Cash General and Administrative ($ / Boe) (2)(3) | $3.40 | - | $3.90 | | $3.40 | - | $3.90 | | | | | | | | | | | Adjusted EBITDA ($ MM) (2)(3) | $ 80 | - | $ 110 | | $ 80 | - | $ 100 | | Cash Interest Expense ($ MM) | $12 | - | $18 | | $12 | - | $18 | | Capital Investment ($ MM) | $55 | - | $70 | | $65 | - | $80 | | Free Cash Flow ($ MM) (2)(3) | $ 10 | - | $ 20 | | $ 0 | - | $ 10 | | | | | | | | | |