Amplify Energy (AMPY) - 2025 Q3 - Quarterly Results

Financial Performance - Amplify Energy reported a net loss of approximately $21.0 million in Q3 2025, compared to a net income of $6.4 million in the prior quarter, primarily due to a $34.0 million impairment charge[6][18]. - Total revenues excluding hedges for Q3 2025 were approximately $66.4 million, lower than $68.4 million in the previous quarter due to decreased commodity prices[8][13]. - The company reported a net loss of $20.966 million for the quarter, compared to a net income of $6.384 million in the previous quarter[39]. - Free Cash Flow for the three months ended September 30, 2025, was $(684,000), an improvement from $(10,147,000) in the previous quarter[44]. - Total revenues for the three months ended September 30, 2025, were $66.396 million, a decrease from $68.361 million for the previous quarter[39]. Production and Sales - Average daily production increased to 19.7 MBoepd in Q3 2025, up 0.6 MBoepd from the previous quarter, with a 10% increase when adjusting for the Eagle Ford divestiture[5][10]. - Average production volumes for the quarter were 1,811 MBoe, an increase from 1,740 MBoe in the prior quarter[40]. - Total production volumes for the three months ended September 30, 2025, reached 1,811 MBOE, an increase from 1,740 MBOE in the previous quarter, representing a 4.1% growth[41]. - Oil and natural gas sales amounted to $64.242 million for the quarter, down from $66.774 million in the prior quarter[40]. - Average sales price for oil was $60.72 per barrel, slightly up from $60.01 per barrel in the previous quarter[40]. Expenses and Costs - Lease operating expenses decreased to approximately $35.6 million in Q3 2025, down $3.0 million from the prior quarter, with a cost of $19.67 per Boe[15]. - Amplify's lease operating expense for the quarter was $35.613 million, down from $38.622 million in the previous quarter[39]. - Lease operating expenses totaled $35,613,000 for the three months ended September 30, 2025, down from $38,622,000 in the previous quarter, a decrease of 7.8%[41]. - Adjusted EBITDA for Q3 2025 was $20.3 million, a 7% increase from the prior quarter, driven by lower lease operating expenses[7]. Capital Expenditures and Investments - Capital investment in Q3 2025 was approximately $17.5 million, with 89% allocated to development drilling and facility projects at Beta[19][20]. - Total capital expenditures for the three months ended September 30, 2025, amounted to $17,470,000, down from $25,516,000 in the previous quarter, indicating a 31.6% decrease[43]. Asset Management and Divestitures - Amplify has entered into agreements to divest its Oklahoma and East Texas assets for a total consideration of $220.0 million, expected to close in Q4 2025[2][4]. - The company plans to use proceeds from asset divestitures to pay down outstanding debt of $123.0 million and to accelerate development at Beta[3][9]. Impairment and Hedging - The company reported an impairment expense of $34.002 million for the quarter, significantly higher than $8.448 million in the prior quarter[39]. - Amplify executed crude oil swaps covering portions of 2026 and 2027 at a weighted average price of $62.29[26]. - The company has hedged natural gas volumes averaging 560,000 MMBtu per month for 2025 at a weighted average fixed price of $3.75[27]. - Amplify maintains a robust hedge book to support its cash flow profile and provide downside protection in weak commodity price environments[26]. Balance Sheet and Equity - Total assets decreased to $731,355,000 as of September 30, 2025, from $771,307,000 at the end of the previous quarter, a decline of 5.2%[42]. - Total liabilities decreased to $338,381,000 as of September 30, 2025, from $360,002,000 in the previous quarter, a reduction of 6.0%[42]. - Shareholders' equity decreased to $392,974,000 as of September 30, 2025, down from $411,305,000 in the previous quarter, reflecting a 4.4% decline[42]. Future Expectations - Amplify expects to generate annualized lease operating expense savings of approximately $10 million from new CO2 contracts and facility upgrades at Bairoil[5][24].