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

Core Viewpoint - Amplify Energy Corp. has made significant progress in its strategic initiatives, including portfolio simplification, balance sheet strengthening, and focusing on high-potential assets, while also reporting year-end 2025 proved reserves and financial results for the fourth quarter and full-year 2025, along with guidance for 2026 [1][2]. Strategic Initiatives Update - The company has successfully simplified its portfolio by divesting assets in East Texas and Oklahoma, which has improved its financial flexibility and cash position [2][5]. - Amplify's drilling program at Beta has shown promising results, increasing confidence in future inventory and realizing cost savings at Bairoil [2][30]. 2025 Year-End Proved Reserve Update - As of year-end 2025, Amplify's proved reserves at Beta and Bairoil totaled 38.1 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of approximately 2.6 MMBoe [3][4]. - Of the total proved reserves, 65% (24.6 MMBoe) were proved developed reserves, while 35% (13.5 MMBoe) were proved undeveloped reserves [3]. Financial Results - For the fourth quarter of 2025, Amplify reported a net income of approximately $64.4 million, a significant increase from a net loss of $21.0 million in the prior quarter, primarily due to gains from asset sales [8][10]. - Adjusted EBITDA for the fourth quarter was $21.5 million, with free cash flow of $2.0 million [9][10]. - The company generated total revenues of approximately $56.6 million in the fourth quarter, down from $66.4 million in the previous quarter [10][14]. Production and Pricing - Average daily production in the fourth quarter was approximately 17.1 MBoepd, with a product mix of 44% crude oil, 15% NGLs, and 41% natural gas [11][13]. - The average sales price for crude oil was $54.18 per barrel, down from $60.72 in the previous quarter [14][54]. Costs and Expenses - Lease operating expenses in the fourth quarter were approximately $29.7 million, a decrease of $5.9 million compared to the prior quarter, primarily due to lower CO2 and electricity costs [15][18]. - General and administrative expenses were $5.1 million, down from $6.7 million in the prior quarter [18][19]. 2026 Operational Plan - Amplify plans to focus on developing drilling opportunities at Beta and reducing costs at Bairoil, with a capital investment projection of $45 to $65 million for 2026 [23][35]. - The company anticipates drilling and completing five to eight wells at Beta in 2026, with a focus on the Joulters fault block [24][28]. Capital Investments - Cash capital investment during the fourth quarter of 2025 was approximately $16.2 million, primarily allocated to development drilling and facility upgrades at Beta [22][35]. - For 2026, the company plans to allocate $10 to $12 million for necessary facility upgrades at Beta [35][36]. Liquidity Update - As of December 31, 2025, Amplify had approximately $61 million in cash and no outstanding balance under its revolving credit facility [34][33].