Amplify Energy (US:AMPY) Globenewswireยท2025-08-06 20:05Strategic Initiatives Update - Amplify Energy Corp. is focused on simplifying its portfolio, becoming more oil-weighted, reducing debt, lowering operating costs, and streamlining the organization [2][3] - The company has engaged TenOaks Energy Advisors to explore market interest for the complete divestiture of its assets in East Texas and Oklahoma, with offers expected later in Q3 2025 [5] - Amplify divested its non-operated assets in the Eagle Ford for $23 million, which closed on July 1, 2025 [5] Key Financial Results - In Q2 2025, Amplify reported net income of approximately $6.4 million, a significant improvement from a net loss of $5.9 million in the prior quarter, primarily due to a gain on commodity derivatives [8][10] - Adjusted EBITDA for Q2 2025 was $19.0 million, comparable to the previous quarter despite lower commodity prices [9][10] - Average daily production increased to 19.1 MBoepd, up approximately 7% from the prior quarter [6][10] Production and Operations - The company completed the C54 well at Beta, which has cumulative gross production of 90,000 barrels of oil and is currently producing approximately 850 gross Bopd [6][7] - In East Texas, four non-operated wells were brought online, currently producing 13 Mmcfe/d net to Amplify's interest, with expected payback in less than 18 months and IRRs greater than 45% [6][28] - The product mix for Q2 2025 was 48% crude oil, 16% NGLs, and 36% natural gas, reflecting a strategic increase in oil weighting [15] Capital Investment and Guidance - Cash capital investment in Q2 2025 was approximately $25.5 million, with a focus on development drilling and facility projects at Beta [22][23] - Amplify plans to invest approximately 95% of its 2025 capital by the end of Q3 2025, with a significant decrease in capital investments expected in the second half of the year [22][32] - Updated full-year 2025 guidance includes net average daily production estimates of 18.5 to 20.0 MBoe/d and an Adjusted EBITDA range of $80 to $100 million [32][33] Hedging and Liquidity - Amplify maintains a robust hedge book, recently adding crude oil swaps for 2026 and 2027 at a weighted average price of $62.79 [35] - As of June 30, 2025, total debt was $130 million, with a net debt to LTM Adjusted EBITDA ratio of 1.5x [11][13]