HOUSTON, May 11, 2026 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) ("Amplify," the "Company," "us," or "our") announced today updates to its operating and financial results for the first quarter of 2026 and reaffirmed its full-year 2026 guidance.
First Quarter Highlights and Recent Developments
-- During the first quarter of 2026, the Company:
-- Averaged total production of 6.4 Mbopd (100% oil)
-- Generated net cash provided by operating activities of $4.5
million and a net loss of $38.1 million
-- Delivered Adjusted EBITDA of $3.8 million and Adjusted Net Income
of $5.3 million
-- Concluded all transition services related to the East Texas and
Oklahoma asset divestitures
-- Obtained royalty relief at our Beta field, reducing the Company's
royalty burden to approximately 12.5% (from approximately 25.0%)
effective May 1, 2026, increasing net production and revenue
-- Continued the drilling program at Beta
-- Completed the C04 well in March with a peak IP30 of 500
Bopd. At current pricing, Amplify expects the well to pay
out in approximately six months with an IRR greater than
100%
-- The C32 well was spud in late March and encountered
mechanical complications in the shallow sections of the
well leading to the abandonment of the well before setting
intermediate casing
-- Continued strategic evaluation of Bairoil's potential role in
carbon storage and low-carbon initiatives
-- Reaffirmed prior guidance for full-year 2026
-- As of March 31, 2026, Amplify had no outstanding debt under its
revolving credit facility and $41.5 million cash and cash
equivalents
Dan Furbee, the Company's Chief Executive Officer, stated, "Amplify has entered 2026 with positive momentum, supported by a strong balance sheet, a more streamlined organization, a simplified oil-weighted portfolio and a constructive crude oil price environment. As we pursue value-adding opportunities at Beta and Bairoil, we believe we will continue to benefit from these dynamics."
Mr. Furbee continued, "At Beta, we continue to pursue our drilling program, and we are pleased with the performance of the C04 well that we brought on-line in March as it further demonstrates the prolific results of the Joulters fault block at Beta. Furthermore, the team recently secured royalty relief that has increased our net production and profitability at Beta. At Bairoil, we remain optimistic that we will find opportunities to leverage our available pore space to enhance the asset's cash generating potential."
Beta Royalty Relief
Amplify successfully obtained royalty relief at its Beta field effective May 1, 2026, which reduced the Company's royalty burden by approximately 50.0% (from 25.0% to approximately 12.5%), resulting in higher production and revenue. This relief increases net production by over 600 barrels of oil per day and is expected to generate more than $1.0 million per month in incremental revenue at current commodity prices. Royalty relief is subject to pricing and production thresholds, detailed further in our latest Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which Amplify expects to file with the Securities and Exchange Commission (the "SEC") on May 11, 2026.
Key Financial Results -- 1st Quarter
The quarter-over-quarter comparisons presented herein are affected by the East Texas and Oklahoma asset divestures completed during the fourth quarter of 2025. These transactions materially impact reported results, and accordingly, period-to-period comparisons should be considered in light of these asset divestitures unless otherwise specified.
During the first quarter of 2026, the Company reported a net loss of approximately $38.1 million compared to net income of $64.4 million in the prior quarter which included the gain on the divestiture of the East Texas and Oklahoma assets. The net loss in the quarter was primarily attributable to a $43.4 million non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives, and additional other one-time impacts, Amplify generated Adjusted Net Income of $5.3 million in the first quarter of 2026. First quarter 2026 Adjusted EBITDA was $3.8 million and Free Cash Flow was negative $18.1 million. Both Adjusted EBITDA and Free Cash Flow were in line with expectations.
First Quarter Fourth Quarter
$ in millions 2026 2025
--------------- ------------------
Net income (loss) $ (38.1) $ 64.4
Net cash provided by (used in)
operating activities $ 4.5 $ (13.4)
Average daily production (MBoe/d) 6.4 17.1
Total revenues excluding hedges $ 37.5 $ 56.6
Adjusted EBITDA (a non-GAAP
financial measure) $ 3.8 $ 21.5
Adjusted net income (loss), (a
non-GAAP financial measure) $ 5.3 $ (10.4)
Total capital $ 21.0 $ 16.2
Free Cash Flow (a non-GAAP
financial measure) $ (18.1) $ 2.0
Corporate Production and Pricing
During the first quarter of 2026, average daily production was approximately 6.4 MBopd and 100% crude oil. Compared to the prior quarter, Beta average daily production increased by approximately 1%, while Bairoil average daily production declined by 6% due to downtime from compression disruptions.
Total oil, natural gas and NGL revenues for the first quarter of 2026 were approximately $37.3 million, before the impact of derivatives. The Company realized a net loss on commodity derivatives of $2.4 million during the first quarter of 2026.
The following table sets forth information regarding average realized crude sales prices for the periods indicated:
Crude Oil ($/Bbl)
-------------------------------
Three Three
Months Months
Ended Ended
March 31, December 31,
2026 2025
------------- ----------------
Average Brent Price $ 77.67 $ 63.06
Average WTI Price $ 71.93 $ 59.14
--- ------- ----------
Average sales price exclusive of
realized derivatives $ 64.93 $ 54.18
Realized derivatives (4.43) 8.92
--- ------- ----------
Average sales price inclusive of
realized derivatives $ 60.49 $ 63.10
--- ------- ----------
Costs and Expenses
In the first quarter of 2026, lease operating expenses at Beta and Bairoil were approximately $22.0 million, which was in line with expectations. Compared to the first quarter of 2025, lease operating expenses in the first quarter of 2026 at Bairoil and Beta were lower by $1.8 million and $3.3 million, respectively. Full-year 2026 lease operating expense guidance remains unchanged at $80.0 to $100.0 million.
Severance and ad valorem taxes for Beta and Bairoil in the first quarter of 2026 were approximately $2.3 million, which was in line with the prior quarter and consistent with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 6.3% in the first quarter of 2026.
Amplify incurred approximately $0.8 million, or $1.31 per Boe, of gathering, processing and transportation (GP&T) expenses in the first quarter of 2026.
Cash G&A expenses in the first quarter of 2026 were approximately $6.3 million compared to $7.3 million in the first quarter of 2025. The Company anticipates that quarterly cash G&A expenses will be significantly lower throughout the remainder of the year primarily due to annual year-end processes that impact various cost drivers in the first quarter and the significant reduction in Company overhead related to the East Texas and Oklahoma divestures. The Company expects costs to be in line with our previously announced guidance range of $17.0 to $22.0 million.
In the first quarter of 2026, depreciation, depletion, and amortization expense totaled approximately $5.7 million and net interest expense was $1.0 million. As noted in last quarter's earnings release, interest expense is primarily related to surety bond premiums for the Beta asset.
Amplify recorded an $11.6 million deferred income tax benefit for the first quarter of 2026.
First Quarter Capital Investments
Cash capital investment during the first quarter of 2026 was approximately $21.0 million. The Company's capital allocation in the quarter was primarily invested in development drilling and recompletions at Beta.
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