Prairie Operating Co. press release

Amplify Energy Announces Strategic Initiatives Update, Year-End 2025 Proved Reserves, Fourth Quarter and Full Year 2025 Results, and 2026 Development Plans and Guidance

2026-03-09

NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States · Resource Estimate

HOUSTON, March 09, 2026 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today updates to its strategic initiatives, year-end 2025 proved reserves, operating and financial results for the fourth quarter and full-year 2025, and full-year 2026 development plans and guidance for the Company.

Strategic Initiatives Update

In the third quarter of 2025, Amplify communicated its strategic plan with three core tenets: (1) simplify the portfolio, (2) strengthen the balance sheet, and (3) focus resources on our assets with the highest potential upside opportunities.

In 2025, the Company made significant progress on all three fronts. Key highlights include:

Completed six separate transactions for total consideration of approximately $250 million (excluding certain post-closing adjustments) In the fourth quarter, Amplify closed three divestitures representing a complete exit of our interests in East Texas, Louisiana, Oklahoma, and Magnify

Repaid all outstanding debt under the credit facility As of December 31, 2025, Amplify had approximately $61 million in cash and cash equivalents

Continued the Beta development program and significantly reduced operating costs at Bairoil At Beta, Amplify drilled and completed four wells, that in total exceeded our pre-drill type curves At Bairoil, Amplify implemented cost saving initiatives lowering annual run-rate lease operating expenses by approximately $10 million

Dan Furbee, the Company’s Chief Executive Officer stated, “We are pleased to report that our strategic plan is delivering the results we set out to achieve. Last year, we committed to simplifying our portfolio, strengthening our balance sheet, and focusing our resources on the assets that we believe have substantial long‑term value creation potential. With the successful divestiture of our East Texas and Oklahoma assets, we have executed a key milestone of that strategy. These transactions have enabled us to eliminate debt and build a strong cash position, giving us greater financial flexibility and a sharper focus on the opportunities that drive meaningful growth.”

Mr. Furbee continued, “We are excited about the continued success we are having with our drilling program at Beta, which has increased our confidence regarding the future inventory of the field for this prolific asset. Furthermore, we have started to realize meaningful cost savings at Bairoil, and we believe additional Carbon Capture, Utilization & Storage (CCUS) initiatives could further increase future cash flow associated with that asset.”

Mr. Furbee concluded, “I am extremely proud of the discipline and focus our team demonstrated throughout the second half of 2025. The on-going execution of our strategic priorities has positioned the company to significantly add value to our shareholders.”

2025 Year-End Proved Reserve Update

Using SEC prices, the 2025 year-end estimated proved reserves at Beta and Bairoil totaled 38.1 MMBoe, reflecting a year‑over‑year increase of approximately 2.6 MMBoe at these properties. Of the 38.1 MMBoe of total proved reserves, approximately 65% (24.6 MMBoe) were proved developed reserves, while approximately 35% (13.5 MMBoe) were proved undeveloped reserves.

At year-end 2025, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $376 million and $195 million, respectively, using SEC pricing. At Beta, on a price normalized basis, the PV-10 of our proved reserves was up 27% compared to year-end 2024. This increase is due to converting four Beta PUDs to PDP, adding new PUDs to our inventory, and increasing the type curve on future PUD locations. At Bairoil, on a price normalized basis, the PV-10 of our proved reserves was up 15% compared to year-end 2024 due to the cost saving initiatives implemented in 2025. Details of the Company’s reserves are provided in the table below. Additionally, Amplify has provided more information regarding its Beta development program and the substantial value potential of the field in its latest investor presentation, which is available on its investor relations website.

| | Estimated Net Reserves1 | | | | | | | | % Oil and | Proved Developed | Proved Undeveloped | Total Proved | | Region | MMBoe | NGL | PV-10 | PV-10 | PV-10 | | | | | (in millions) | | | | | | | | | | | Beta | 24.3 | 100% | $128 | $181 | $309 | | Bairoil | 13.7 | 100% | 67 | - | 67 | | Total | 38.1 | 100% | $195 | $181 | $376 | | | | | | | |

(1) Amplify’s year-end 2025 total proved reserves, utilizing SEC pricing of $65.34/Bbl for oil.

Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

Key Financial Results – 4thQuarter

During the fourth quarter of 2025, the Company reported net income of approximately $64.4 million compared to a net loss of $21.0 million in the prior quarter. The increase was primarily attributable to the gain on the sale of its East Texas and Oklahoma assets in the fourth quarter. Excluding the impact of the gain, and additional other one-time impacts, Amplify generated an Adjusted Net Loss of $10.4 million in the fourth quarter of 2025.

Fourth quarter 2025 Adjusted EBITDA was $21.5 million, and free cash flow was $2.0 million. Amplify’s fourth quarter results include the impact of the East Texas and Oklahoma assets through their respective closing date.

| | | | | | | | | | | | | | | | | | | | Fourth Quarter | Third Quarter | | | | $ in millions | 2025 | 2025 | | | | Net income (loss) | $64.4 | | ($21.0 | ) | | Net cash provided (used in) by operating activities | ($13.4 | ) | $13.4 | | | Average daily production (MBoe/d) | 17.1 | | 19.7 | | | Total revenues excluding hedges | $56.6 | | $66.4 | | | Adjusted EBITDA (a non-GAAP financial measure) | $21.5 | | $20.3 | | | Adjusted net income (loss) (a non-GAAP financial measure) | ($10.4 | ) | $3.2 | | | Total capital | $16.2 | | $17.5 | | | Free Cash Flow (a non-GAAP financial measure) | $2.0 | | ($0.7 | ) | | | | | | |

Corporate Production and Pricing

During the fourth quarter of 2025, average daily production was approximately 17.1 MBoepd, with a product mix of 44% crude oil, 15% NGL’s, and 41% natural gas.

| | | | | | | | | Three Months | | Three Months | | | | | Ended | | Ended | | | | | December 31, 2025 | | September 30, 2025 | | | | | | | | | | | Production volumes - MBOE: | | | | | | | Bairoil | 266 | | | 280 | | | Beta | 336 | | | 357 | | | Oklahoma | 367 | | | 402 | | | East Texas / North Louisiana | 606 | | | 768 | | | Eagle Ford (Non-op) | - | | | 4 | | | Total - MBoe | 1,575 | | | 1,811 | | | Total - MBoe/d | 17.1 | | | 19.7 | | | % - Liquids | 59 | % | | 57 | % | | | | | | | |

During the fourth quarter of 2025, average daily production for Beta and Bairoil was approximately 6.6 MBopd (100% oil production). Beta production was approximately 6% lower than the prior quarter, primarily driven by the previously announced planned shut-in to complete an upgrade of a subsea flowline connecting Platform Eureka to Platform Elly. Bairoil production was approximately 5% lower than the prior quarter due to the completion of the CO2 compression optimization project. Despite lower production, the asset was more profitable due to reduced power costs realized by implementing the compression optimization project.

Total oil, natural gas and NGL revenues for the fourth quarter of 2025 were approximately $54.7 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $6.0 million during the fourth 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 December 31, 2025 | | Three Months Ended September 30, 2025 | | Three Months Ended December 31, 2025 | | Three Months Ended September 30, 2025 | | Three Months Ended December 31, 2025 | | Three Months Ended September 30, 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Average sales price exclusive of realized derivatives and certain deductions from revenue | $ | 54.18 | | $ | 60.72 | | $ | 19.49 | | | $ | 20.31 | | | $ | 3.33 | | $ | 2.84 | | Realized derivatives | | 8.92 | | | 4.08 | | | - | | | | - | | | | 0.12 | | | 0.38 | | | | | | | | | | | | | | | | | | | | | | | Average sales price with realized derivatives exclusive of certain deductions from revenue | $ | 63.10 | | $ | 64.80 | | $ | 19.49 | | | $ | 20.31 | | | $ | 3.45 | | $ | 3.23 | | Certain deductions from revenue | | - | | | - | | | (1.62 | ) | | | (1.45 | ) | | | 0.02 | | | 0.02 | | | | | | | | | | | | | | | | | | | | | | | Average sales price inclusive of realized derivatives and certain deductions from revenue | $ | 63.10 | | $ | 64.80 | | $ | 17.87 | | | $ | 18.86 | | | $ | 3.47 | | $ | 3.24 | | | | | | | | | | | | | | | | | | | | | |

Costs and Expenses

Lease operating expenses in the fourth quarter of 2025 were approximately $29.7 million, down $5.9 million compared to the prior quarter. The decrease was primarily due to lower CO2 and electricity costs at Bairoil and fewer workover projects at Beta. In total, lease operating expenses at Beta and Bairoil were $21.3 million in the fourth quarter, down $5.6 million compared to the prior quarter.

Severance and ad valorem taxes in the fourth quarter were approximately $3.5 million, a decrease of $0.2 million compared to $3.7 million in the prior quarter. Severance and ad valorem taxes as a percentage of revenue were approximately 6.5% in the fourth quarter.

Amplify incurred $3.5 million, or $2.25 per Boe, of gathering, processing and transportation (GP&T) expenses in the fourth quarter, compared to $5.2 million, or $2.89 per Boe, in the prior quarter. Going forward, Amplify expects lower GP&T costs with the divestitures of East Texas and Oklahoma.

Cash G&A expenses in the fourth quarter were $5.1 million compared to $6.7 million in the prior quarter. The decrease in the quarter was primarily due to reclassing certain accrued expenses as severance expense as a result of the East Texas and Oklahoma transactions. In 2026, Amplify expects annual G&A costs of $17 to $22 million.

In the fourth quarter, depreciation, depletion, and amortization expense totaled $5.2 million and net interest expense was $4.6 million. In 2026, Amplify expects net interest expense to be significantly lower following repayment of all outstanding balances under the credit facility. Going forward, interest expense will be primarily related to surety bond premiums for the Beta asset.

Amplify recorded a $1.8 million current income tax benefit for the fourth quarter of 2025. The Company also does not expect any material income tax impact from the divested assets.

Key Financial Results - 2025

For full year 2025, the Company generated net income of approximately $44.0 million compared to $12.9 million in 2024. Net cash provided by operating activities was $49.2 million compared to $51.3 million in the prior year. In 2025, Amplify’s average production was 18.4 Mboepd, while the company generated Adjusted EBITDA of $80.2 million and an Adjusted Net Loss of $5.6 million. Full year free cash flow totaled negative $16.1 million. Due to significant changes in Amplify’s asset portfolio (as a result of the aforementioned divestitures), future performance is expected to vary significantly from prior periods.

Fourth Quarter and Full-Year Capital Investments

Cash capital investment during the fourth quarter of 2025 was approximately $16.2 million. During the fourth quarter, the Company’s capital allocation was primarily invested in development drilling, recompletions and the subsea flowline upgrade at Beta.

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

| | Fourth Quarter | | Full-Year | | | | | | | 2025 Capital | | 2025 Capital | | | | | | | ($ MM) | | ($ MM) | | | | | | Bairoil | $ | (0.2 | ) | | $ | 6.5 | | | Beta | $ | 16.1 | | | $ | 57.7 | | | Oklahoma | $ | 0.0 | | | $ | 2.6 | | | East Texas / North Louisiana | $ | 0.2 | | | $ | 7.5 | | | Eagle Ford (Non-op) | $ | 0.0 | | | $ | 7.1 | | | Magnify Energy Services | $ | 0.0 | | | $ | 0.8 | | | Total Capital Invested | $ | 16.2 | | | $ | 82.3 | | | | | | | | | | |

2026 Operational Plan

With a simplified portfolio, Amplify’s operational focus in 2026 and beyond will be developing the highly economic drilling opportunities at Beta and continuing to reduce costs at Bairoil while exploring opportunities to benefit from CCUS initiatives.

Beta

In 2024 and 2025, Amplify implemented a development and delineation program at Beta which included six drilled and completed wells. With a strengthened balance sheet, we are initiating a more consistent development program and anticipate drilling and completing five to eight wells in 2026, with the majority of the development focused on the Joulters fault block in the southern portion of the field. We intend to complete four wells through June and will re-evaluate the development pace for the second half of 2026.

Of the six wells completed to date, five wells were completed in the D-Sand (primary target), and one well was completed in the C-Sand (i.e., C48). Of the D-Sand completions, three wells were completed in the Joulters fault block (i.e., C59, C54, and C08) and two wells were completed in the Main fault block (i.e., A50, C61). The development in the Joulters fault block has been very consistent to date with minimal drilling hazards encountered and consistent production results with an average IP30 of 680 Bopd and an average completed lateral length of 862 feet. The Main fault block development has yielded solid, but less consistent results. For example, the A50 well, completed in June 2024, has a lateral length of only 266 feet but has performed well with an IP30 rate of 720 Bopd and current production of approximately 200 Bopd. The C61 well, completed in the Main fault block in October 2025, has a completed lateral length of 700 feet due to drilling into an unanticipated fault in the D-Sand resulting in an IP30 rate of only 170 Bopd and current production of approximately 120 Bopd. Based on these results, we intend to focus our 2026 drilling program primarily on the Joulters fault block with targeted completion lateral lengths of 1,000 feet to 1,500 feet per well.

At Beta, the D-Sand is our current development priority, with all 2026 development planned in that target interval. We have identified 29 D-Sand drilling opportunities, with 22 locations in the Joulters fault block and 7 locations in the Main fault block. The average lateral length of this inventory is approximately 1200 feet. In addition to the currently identified inventory, Amplify’s D-Sand inventory may change over time based on well results, potentially extended completed lateral lengths, and further delineation of the water-oil contact in the Joulters fault block.

In addition to the D-Sand, Amplify has identified upside in the F-Sand and has plans to delineate its potential in the future as the Company’s secondary target. Similar to the D-Sand, the F-Sand has very attractive petrophysical characteristics and significant remaining oil to be recovered. The tertiary target in the Beta reservoir’s development is the C-Sand, which we believe can achieve good results in select areas of the Beta field. The C-Sand is currently classified as a “bailout” zone that can be completed if Amplify encounters drilling challenges while drilling to the D or F Sands, as was done with the C48 well.

As noted above, Amplify’s 2026 drilling campaign will focus on the D-Sand interval primarily within the Joulters fault block. Amplify estimates the D-Sand in the Joulters fault block has approximately 70 million barrels of oil in place, with an estimated total recovery of over 20 million barrels of oil. In addition to the high remaining oil in place, this fault block was historically less developed, making it very attractive for full-scale development as currently planned. As opposed to the Main fault block, Joulters had minimal development in the 1980’s (during the initial development of the Beta field) due to its distance from the Ellen and Eureka platforms in combination with the limited available technology at the time. The three wells recently drilled in the Joulters fault block from the Eureka platform have proven that we can effectively drill and complete horizontal wells (i.e., 1000+ feet in the completed section) in this prolific portion of the field.

We are providing a new type curve for the D-Sand interval in the Joulters fault block. The new type curve is derived from the volumetrics of the Joulters fault block and the results of the three Joulters wells drilled and completed to date. The type curve projection, based on a $6.5 million drilling and completion cost and a 1000’ completed lateral length, has an EUR of approximately 670,000 barrels of oil and generates >100% IRR assuming a flat WTI price of $65 per barrel. This type curve is approximately 25% higher than the previous Beta type curve. The Main fault block will remain the same as the previous type curve. The Main fault block type curve has an approximate EUR of 540,000 barrels of oil and generates >70% IRRs utilizing the same capital cost and lateral length assumptions as the Joulters type curve. Please see our recently released investor presentation for more details on our Beta assets.

Bairoil

At Bairoil, the Company continues to enhance profitability by reducing the operating costs of the field. In the fourth quarter, Amplify started realizing the benefits of the previously announced new CO2 purchase contract and completion of the CO2 compression optimization project. In combination, these two initiatives are expected to generate annualized lease operating expense savings of approximately $10 million per year, which is represented in our 2026 full year-guidance.

The Company remains highly encouraged by the upside potential at Bairoil, particularly its suitability for future CCUS development. Bairoil is strategically located along a major CO2 transportation corridor, as highlighted in our most recent investor presentation. In 2025, Bairoil achieved certification under the CSA ANSI/ISO EOR Operations Management Plan, an important milestone in positioning the asset to qualify for Section 45Q tax credits. In addition, Bairoil reservoirs contain substantial available pore space, creating a meaningful opportunity to unlock incremental value through CCUS initiatives. Amplify and its advisor, Marathon Capital, are undertaking a strategic evaluation of Bairoil’s potential as a large carbon storage site and its possible integration into broader low-carbon power and industrial projects.

Revolving Credit Facility and Liquidity Update

In the fourth quarter, Amplify used a portion of the transaction proceeds from the East Texas and Oklahoma transactions to pay down all of its debt under the credit facility. On December 31, 2025, Amplify worked with its lenders to amend and extend the credit facility. The initial borrowing base under the amended revolving credit facility is $25 million with elected commitments of $15 million, and the term of the maturity of the credit agreement was extended by 18 months through 2028. The next regularly scheduled borrowing base redetermination is expected to occur in the second quarter of 2026.

As of December 31, 2025, Amplify had no outstanding balance under its revolving credit facility with more than $60 million in cash on the balance sheet.

Full-Year 2026 Guidance

The Company is projecting total capital investment in 2026 of $45 to $65 million with over 95% allocated to Beta. Beta capital is primarily focused on development drilling, with $10 to $12 million allocated for necessary facility upgrades as we grow production. As previously stated, we anticipate completing five to eight wells at Beta in 2026, with four wells drilled and completed in the first half of the year.