Amplify Energy (US:AMPY)2025-11-05 21:32Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $20.966 million compared to a net income of $22.652 million for the same period in 2024[171]. - Adjusted net loss for Q3 2025 was ($6.0) million, compared to adjusted net income of $9.8 million in Q3 2024[203]. - Oil, natural gas, and NGL revenues decreased to $201.4 million for the nine months ended September 30, 2025, down from $215.8 million in 2024[186]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $58.7 million, compared to $81.2 million for the same period in 2024, reflecting a decrease of 27.8%[210]. Sales and Production - Oil and natural gas sales for the three months ended September 30, 2025, were $64.242 million, down from $68.135 million in 2024, reflecting a decrease of approximately 5.2%[172]. - Average realized sales price per Boe decreased to $35.47 in Q3 2025 from $38.88 in Q3 2024, a decline of about 6.2%[172]. - Average net production volumes declined to approximately 18.9 MBoe/d for the nine months ended September 30, 2025, from 19.8 MBoe/d in 2024[186]. - The average realized sales price for the nine months ended September 30, 2025, was $39.03 per Boe, down from $39.69 per Boe in 2024[226]. Expenses - Lease operating expenses increased to $35.613 million in Q3 2025 from $33.255 million in Q3 2024, with per Boe costs rising from $18.98 to $19.67[174]. - Gathering, processing, and transportation expenses rose to $5.237 million in Q3 2025 from $4.290 million in Q3 2024, with per Boe costs increasing from $2.45 to $2.89[175]. - General and administrative expenses rose to $11.8 million in Q3 2025 from $8.3 million in Q3 2024, primarily due to acquisition costs and severance expenses[179]. - DD&A expenses increased to $9.0 million for Q3 2025 from $8.1 million in Q3 2024, driven by increased production[177]. Impairment and Losses - Impairment expense for Q3 2025 was $34.0 million, compared to no impairment expense in Q3 2024[178]. - Impairment expense for the nine months ended September 30, 2025, was $42.5 million, with no impairment recorded in 2024[192]. - Net loss on commodity derivative instruments was ($6.9) million in Q3 2025, compared to a net gain of $25.0 million in Q3 2024[180]. Cash Flow and Capital Expenditures - For the nine months ended September 30, 2025, net cash provided by operating activities was $62.6 million, compared to $38.8 million for the same period in 2024, representing a 61.5% increase[225]. - Total capital expenditures for the nine months ended September 30, 2025, were approximately $66.1 million, primarily related to the development program at Beta and non-operated drilling activities[216]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $56.6 million, with $65.2 million allocated to additions to oil and natural gas properties[229]. Asset Sales and Divestitures - The company generated $5.5 million in net proceeds from the sale of its remaining interest in certain units in the Cotton Valley and Haynesville basins, which closed on October 24, 2025[160]. - The EQV Asset Sale is expected to close in December 2025 for a cash purchase price of $122.0 million, with an effective date of October 1, 2025[162]. - The Revolution Asset Sale is anticipated to close in December 2025 for a cash purchase price of $92.5 million, also with an effective date of October 1, 2025[163]. - The company divested all non-operated working interests in the Eagle Ford for a contract price of $23.0 million[230]. Working Capital and Debt - As of September 30, 2025, the company had a working capital deficit of $9.6 million, primarily due to accrued liabilities of $29.7 million[218]. - The borrowing base under the Revolving Credit Facility was $135.0 million, with $123.0 million in loans outstanding as of September 30, 2025[219]. - The company had net repayments of $4.0 million related to its Revolving Credit Facility for the nine months ended September 30, 2025, compared to net borrowings of $5.0 million for the same period in 2024[232]. Other Financial Information - The company incurred professional fees and expenses of approximately $3.5 million in connection with the termination of the contemplated merger with Juniper Capital[212]. - Shares withheld for taxes amounted to $2.0 million for the nine months ended September 30, 2025, compared to $1.9 million for the same period in 2024[232]. - As of September 30, 2025, the company had no off-balance sheet arrangements[233]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[235].