Amplify Energy (US:AMPY) Globenewswire·2025-11-05 21:05Core Insights - Amplify Energy Corp. has announced updates on its strategic initiatives and financial results for Q3 2025, focusing on divesting assets and improving financial health [1][2][3] Strategic Initiatives Update - The company has entered into agreements to divest its Oklahoma and East Texas assets for a total of $220 million, with one transaction already closed and the others expected to close in Q4 2025 [2][3] - Proceeds from these asset transactions will be used to pay down debt and accelerate development at the Beta site, while also reducing future general and administrative costs [3][4] Financial Performance - In Q3 2025, Amplify reported a net loss of $21 million, a significant decrease from a net income of $6.4 million in the previous quarter, primarily due to an impairment charge [6][8] - Adjusted EBITDA for the quarter was $20.3 million, a 7% increase from the prior quarter, driven by lower lease operating expenses [7][8] - Average daily production increased to 19.7 MBoepd, up from 19.1 MBoepd in the previous quarter, despite the divestiture of Eagle Ford assets [10][12] Production and Operations - The company successfully drilled two additional wells at Beta, with the C08 well achieving an initial production rate of approximately 550 Bopd, significantly exceeding expectations [5][22] - The Beta development program has resulted in a 40% increase in production since early 2024, with all five recently completed wells expected to generate internal rates of return greater than 100% at $65 WTI oil prices [23][24] Cost Management - Lease operating expenses decreased to $35.6 million in Q3 2025, down from $38.6 million in the previous quarter, reflecting a cost reduction strategy [15][18] - The company anticipates further reductions in lease operating expenses due to new CO2 purchase contracts and energy efficiency improvements at the Bairoil facility [15][26] Capital Investment - Cash capital investment for Q3 2025 was approximately $17.5 million, with a focus on development drilling and facility projects at Beta [20][21] - The company plans to invest between $8 million and $12 million in Q4 2025, primarily at Beta [20] Hedging Strategy - Amplify maintains a robust hedge book to support cash flow, recently adding crude oil swaps for portions of 2026 and 2027 at a weighted average price of $62.29 [28][29]