[Strategic Initiatives and Second Quarter 2025 Highlights](index=1&type=section&id=Strategic%20Initiatives%20and%20Second%20Quarter%202025%20Highlights) The company is undergoing strategic portfolio simplification and debt reduction, while reporting strong Q2 2025 production and financial results [Strategic Initiatives Update](index=1&type=section&id=Strategic%20Initiatives%20Update) Amplify is simplifying its portfolio, reducing debt, and lowering costs via asset divestitures and organizational changes - The company is committed to simplifying its portfolio, focusing on its most attractive investment opportunities, becoming more **oil-weighted**, **reducing debt**, and **lowering operating costs**[2](index=2&type=chunk) - Engaged TenOaks Energy Advisors to explore the complete divestiture of assets in East Texas and Oklahoma, with offers expected to be solicited in Q3[5](index=5&type=chunk) - Divested non-operated assets in the Eagle Ford for **$23 million**, with the transaction closing on July 1, 2025[5](index=5&type=chunk) - Implemented changes in governance, including appointing the largest shareholder to the Board, reducing Board size from **eight to five**, and promoting **Dan Furbee to CEO** and **Jim Frew to President and CFO**[5](index=5&type=chunk) [Second Quarter 2025 Key Highlights](index=1&type=section&id=Second%20Quarter%202025%20Key%20Highlights) Amplify increased Q2 2025 production to **19.1 MBoepd**, generating **$23.7 million** operating cash flow and **$6.4 million** net income Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Average Total Production | 19.1 MBoepd (+7% vs Q1) | | Net Cash from Operating Activities | $23.7 million | | Net Income | $6.4 million | | Adjusted EBITDA | $19.0 million | | Adjusted Net Loss | $2.3 million | - The new **C54 well** at the Beta property, brought online in late-April, has the **highest initial production rates** of the four wells in the development program started last year[6](index=6&type=chunk)[7](index=7&type=chunk) - Non-operated wells in East Texas, drilled by partners, are exceeding company forecasts[7](index=7&type=chunk) [Financial and Operational Performance](index=2&type=section&id=Financial%20and%20Operational%20Performance) Amplify's Q2 2025 financial and operational performance, covering key results, liquidity, production, costs, and capital investments [Key Financial Results](index=2&type=section&id=Key%20Financial%20Results) Amplify reported a turnaround to net income in Q2 2025, with stable Adjusted EBITDA and expected negative free cash flow due to capital investments Q2 2025 vs Q1 2025 Financial Summary ($ in millions) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net income (loss) | $6.4 | $(5.9) | | Adjusted EBITDA | $19.0 | $19.4 | | Adjusted net income (loss) | $(2.3) | $3.8 | | Free Cash Flow | $(10.1) | $(7.2) | | Total capital | $25.5 | $23.1 | - As of June 30, 2025, the company's Net Debt to LTM Adjusted EBITDA ratio was **1.5x**[10](index=10&type=chunk) [Revolving Credit Facility and Liquidity Update](index=3&type=section&id=Revolving%20Credit%20Facility%20and%20Liquidity%20Update) Amplify's borrowing base was reaffirmed at **$145.0 million**, then reduced to **$135.0 million** post-divestiture, with total debt at **$130.0 million** - The semi-annual borrowing base was reaffirmed at **$145.0 million** on May 29, 2025[12](index=12&type=chunk) - Following the Eagle Ford divestiture, the borrowing base was reduced to **$135.0 million**[12](index=12&type=chunk) - As of June 30, 2025, total debt was **$130.0 million**, with a Net Debt to LTM Adjusted EBITDA of **1.5x**[12](index=12&type=chunk) [Corporate Production and Pricing](index=3&type=section&id=Corporate%20Production%20and%20Pricing) Q2 2025 average daily production increased to **19.1 MBoepd**, with an oil-weighted shift to **48%** of total production, despite lower realized commodity prices Production Volumes by Asset (MBOE) | Asset | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Bairoil | 286 | 280 | | Beta | 355 | 315 | | Oklahoma | 404 | 393 | | East Texas / North Louisiana | 584 | 570 | | Eagle Ford (Non-op) | 111 | 49 | | **Total - MBoe/d** | **19.1** | **17.9** | - The company's product mix became more **oil-weighted**, with crude oil representing **48%** of total production in Q2 2025, compared to **41%** in Q2 2024[15](index=15&type=chunk) Average Realized Sales Prices (exclusive of derivatives) | Product | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Crude Oil ($/Bbl) | $60.01 | $67.82 | | NGLs ($/Bbl) | $21.45 | $25.24 | | Natural Gas ($/Mcf) | $3.01 | $3.87 | [Costs and Expenses](index=4&type=section&id=Costs%20and%20Expenses) Q2 2025 lease operating expenses were **$38.6 million** (**$22.20/Boe**), while cash G&A decreased **7%** to **$6.8 million**, with expected LOE reductions ahead - Lease operating expenses were **$38.6 million** (**$22.20/Boe**) in Q2, a **5% decrease** on a per-unit basis from Q1's **$23.28/Boe**[19](index=19&type=chunk) - Cash G&A expenses decreased by **7%** quarter-over-quarter to **$6.8 million**[21](index=21&type=chunk) - Depreciation, depletion, and amortization (DD&A) expense was **$9.8 million**, or **$5.61 per Boe**[21](index=21&type=chunk) [Capital Investment Update](index=4&type=section&id=Capital%20Investment%20Update) Amplify invested **$25.5 million** in Q2 2025 capital, totaling **$48.6 million** YTD, with **95%** of the 2025 budget front-loaded by Q3 Capital Invested by Asset - Q2 2025 ($MM) | Asset | Q2 2025 Capital ($MM) | YTD 2025 Capital ($MM) | | :--- | :--- | :--- | | Bairoil | $4.5 | $5.8 | | Beta | $13.3 | $26.1 | | Oklahoma | $1.0 | $2.5 | | East Texas / North Louisiana | $2.8 | $6.2 | | Eagle Ford (Non-op) | $3.6 | $7.5 | | **Total Capital Invested** | **$25.5** | **$48.6** | - The company intends to invest approximately **95%** of its 2025 capital by the end of the third quarter[23](index=23&type=chunk) - Capital investments are forecasted to drop significantly in the second half of 2025, with an estimated range of **$21 million to $31 million**, compared to **$48.6 million** in the first half[23](index=23&type=chunk) [Outlook and Development](index=5&type=section&id=Outlook%20and%20Development) This section outlines Amplify's 2025 operational plans, updated full-year guidance, and hedging strategies to manage commodity price risk [2025 Operations & Development Plan](index=5&type=section&id=2025%20Operations%20%26%20Development%20Plan) Amplify's 2025 plan focuses on accelerating the Beta program with new wells, leveraging strong IRRs, and optimizing East Texas and Bairoil assets - The company is drilling the **C08 well** at Beta, a direct offset to the highly successful **C54** and **C59** wells, which are projected to generate **greater than 100% IRRs**[27](index=27&type=chunk) - In East Texas, **four new non-operated wells** are currently producing **13 Mmcfe/d** net to Amplify's interest, with expected IRRs **greater than 45%**[29](index=29&type=chunk) - At Bairoil, the company obtained certification under the CSA ANSI/ISO Standard, allowing portions of CO2 used to qualify for **Section 45Q tax credits**[32](index=32&type=chunk) [Updated Full-Year 2025 Guidance](index=5&type=section&id=Updated%20Full-Year%202025%20Guidance) Amplify updated its full-year 2025 guidance, adjusting production to **18.5-20.0 MBoepd**, capital to **$65-$80 million**, and Adjusted EBITDA to **$80-$100 million** Updated Full-Year 2025 Guidance vs. Previous | Metric | Previous Guidance (May 12) | Updated Guidance (Aug 6) | | :--- | :--- | :--- | | Total Production (MBoe/d) | 19.0 - 20.5 | 18.5 - 20.0 | | Capital Expenditures ($MM) | $55 - $70 | $65 - $80 | | Adjusted EBITDA ($MM) | $80 - $110 | $80 - $100 | | Free Cash Flow ($MM) | $10 - $20 | $0 - $10 | - The guidance is based on assumed commodity prices of approximately **$65.00/Bbl** WTI for crude oil and **$3.50/MMBtu** Henry Hub for natural gas[33](index=33&type=chunk) [Hedging](index=8&type=section&id=Hedging) Amplify expanded its hedging program, executing crude oil swaps for 2026-2027 at **$62.79/Bbl** and natural gas swaps/collars for 2027-2028 with **$3.50/MMBtu** floors - Recently executed crude oil swaps for portions of 2026 and 2027 at a weighted average price of **$62.79**[36](index=36&type=chunk) - Added natural gas swaps for 2027 and 2028 at an average price of **$3.86 per MMBtu**, and costless collars for the same period with weighted average floors of **$3.50 per MMBtu**[36](index=36&type=chunk) Hedged Volumes and Prices (July 2025 - Dec 2028) | Commodity | 2025 | 2026 | 2027 | | :--- | :--- | :--- | :--- | | **Oil Swaps** | | | | | Avg Monthly Vol (Bbls) | 170,000 | 146,500 | 45,667 | | Wtd Avg Price ($) | $70.32 | $65.77 | $62.57 | | **Natural Gas Swaps** | | | | | Avg Monthly Vol (MMBtu) | 560,000 | 515,000 | 197,500 | | Wtd Avg Price ($) | $3.75 | $3.80 | $3.96 | [Unaudited Financial Statements and Non-GAAP Reconciliations](index=9&type=section&id=Unaudited%20Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section presents Amplify's unaudited financial statements, covering operations, production, costs, balance sheet, cash flow, and non-GAAP reconciliations [Statements of Operations](index=12&type=section&id=Statements%20of%20Operations) Amplify reported Q2 2025 total revenues of **$68.4 million**, operating income of **$12.6 million**, and net income of **$6.4 million** (**$0.15** per share) Statements of Operations Summary (in $000s) | Line Item | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Revenues | $68,361 | $72,050 | | Total Costs and Expenses | $55,802 | $76,044 | | Operating Income (loss) | $12,559 | $(3,994) | | Net income (loss) | $6,384 | $(5,861) | | Basic and diluted EPS | $0.15 | $(0.15) | [Selected Production and Cost Data](index=13&type=section&id=Selected%20Production%20and%20Cost%20Data) Q2 2025 total production reached **1,740 MBOE**, with lease operating expenses at **$38.6 million** and capital expenditures totaling **$25.5 million** Q2 2025 Production and Capex by Asset | Asset | Production (MBOE) | Capex ($000s) | | :--- | :--- | :--- | | Bairoil | 286 | $4,488 | | Beta | 355 | $13,328 | | Oklahoma | 404 | $1,006 | | East Texas / North Louisiana | 584 | $2,800 | | Eagle Ford (Non-op) | 111 | $3,550 | | **Total** | **1,740** | **$25,516** | [Balance Sheet and Cash Flow Data](index=14&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Data) As of June 30, 2025, Amplify reported **$771.3 million** in total assets, **$360.0 million** in liabilities, and **$411.3 million** in equity Balance Sheet Summary (in $000s) - June 30, 2025 | Category | Amount | | :--- | :--- | | Total Current Assets | $70,013 | | Total Assets | $771,307 | | Total Current Liabilities | $83,254 | | Long-term Debt | $130,000 | | Total Liabilities | $360,002 | | Total Shareholders' Equity | $411,305 | Cash Flow Summary (in $000s) - Q2 2025 | Activity | Amount | | :--- | :--- | | Net cash from operating activities | $23,689 | | Net cash used in investing activities | $(28,683) | | Net cash from financing activities | $4,994 | [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) Amplify provides non-GAAP reconciliations for Q2 2025, showing Adjusted EBITDA of **$19.0 million**, Free Cash Flow of negative **$10.1 million**, and Adjusted Net Loss of **$(2.3) million** Reconciliation of Net Income to Adjusted EBITDA (in $000s) - Q2 2025 | Line Item | Amount | | :--- | :--- | | Net income | $6,384 | | Interest expense, net | $3,594 | | Income tax expense | $1,915 | | DD&A | $9,765 | | (Gains) on commodity derivatives | $(22,162) | | Cash settlements on derivatives | $4,781 | | Other adjustments | $4,606 | | **Adjusted EBITDA** | **$18,983** | Reconciliation to Free Cash Flow (in $000s) - Q2 2025 | Line Item | Amount | | :--- | :--- | | Adjusted EBITDA | $18,983 | | Less: Cash interest expense | $3,614 | | Less: Capital expenditures | $25,516 | | **Free Cash Flow** | **$(10,147)** | Reconciliation to Adjusted Net Income (Loss) (in $000s) - Q2 2025 | Line Item | Amount | | :--- | :--- | | Net income | $6,384 | | Unrealized (gains) on commodity derivatives | $(17,381) | | Other adjustments & tax effect | $8,727 | | **Adjusted net (loss)** | **$(2,270)** |

Strategic 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]

Company Overview - Amplify Energy Corp. is an independent oil and natural gas company involved in the acquisition, development, exploitation, and production of oil and natural gas properties [2] - The company's operations are primarily located in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), and East Texas / North Louisiana [2] Upcoming Financial Reporting - Amplify Energy will report its second quarter 2025 financial and operating results after the U.S. financial markets close on August 6, 2025 [1]

Core Viewpoint - Amplify Energy Corp. is focusing on strategic initiatives to simplify its portfolio, reduce debt, and enhance shareholder value through divestitures and operational optimization [2][3][5]. Strategic Initiatives - The company is committed to simplifying its portfolio and focusing on attractive investment opportunities to create shareholder value [2]. - Amplify has engaged TenOaks Energy Advisors to explore the divestiture of its assets in East Texas and Oklahoma, aiming to reduce debt and lower general and administrative costs [3]. - The potential sale of these assets is expected to allow Amplify to accelerate its development program at Beta and pursue cost-saving opportunities at Bairoil [4]. Executive Leadership Changes - Effective July 22, 2025, Martyn Willsher has stepped down as President and CEO, with Dan Furbee promoted to CEO and Jim Frew promoted to President and CFO [5][6]. - The Board of Directors believes the new leadership team can effectively implement the focused strategic plan [6]. Company Overview - Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, and production of oil and natural gas properties, with operations primarily in Oklahoma, the Rockies, federal waters offshore Southern California, and East Texas/North Louisiana [7].

Group 1 - Amplify Energy Corp. (NYSE: AMPY) shares have decreased by 50% following the announcement of a proposed merger with Juniper Capital, which has since been terminated [2] - The decline in share price is attributed to concerns regarding the failed merger deal [2] - The Insiders Forum focuses on small and mid-cap stocks that insiders are purchasing, aiming to outperform the Russell 2000 benchmark over time [2]

Company Overview - Amplify Energy (NYSE: AMPY) recently sold its non-operated Eagle Ford assets for $23 million, which is considered a fair price based on an estimated valuation of 0.7x to 0.8x PD PV-10 at current strip prices, providing the company with additional liquidity [2]. Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks. He co-founded a mobile gaming company that was acquired by PENN Entertainment and has designed in-game economic models for mobile apps with over 30 million combined installs [2].

Core Viewpoint - Amplify Energy Corp. has entered into a definitive agreement to sell its non-operated working interest in Eagle Ford assets to Murphy Exploration & Production Company for $23 million, effective June 15, 2025, with the sale closing on July 1, 2025 [1][2]. Financial Impact - The net proceeds from the sale will be utilized to pay down debt, enhancing the company's liquidity [2]. - With an improved balance sheet, the company is considering the addition of high-return Beta development wells in 2025 that were previously deferred [2]. Strategic Direction - The sale is viewed as a significant step in transforming Amplify Energy into a more streamlined and focused enterprise, with a strategy centered on reducing debt and accelerating development at Beta [3]. - The company believes that monetizing proved reserves and reinvesting in high-return development wells will enhance shareholder value [3]. Company Overview - Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation, and production of oil and natural gas properties, with operations focused in Oklahoma, the Rockies, federal waters offshore Southern California, and East Texas/North Louisiana [4].

Core Points - Amplify Energy Corp. has completed its semi-annual borrowing base redetermination, affirming the borrowing base at $145 million [1][2] - The next borrowing base redetermination is expected in the fourth quarter of 2025 [1] - The CEO expressed gratitude to lenders for reaffirming the borrowing base despite commodity price volatility [2] - The company aims to generate free cash flow and manage liquidity through strong hedge positions and cost reduction efforts [2] - Amplify Energy is focused on portfolio optimization opportunities to accelerate its development program at Beta [2] Company Overview - Amplify Energy Corp. is an independent oil and natural gas company involved in the acquisition, development, exploitation, and production of oil and natural gas properties [3] - The company's operations are concentrated in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas/North Louisiana, and the Eagle Ford (Non-op) [3]

Company Participation - Amplify Energy Corp. will participate in the 2025 Louisiana Energy Conference on May 28 in New Orleans, LA [1] - Martyn Willsher, President and CEO of Amplify, will join a panel discussion on "Small Cap E&Ps See Value Creation in U.S. Basins Beyond the Permian" [2] Company Overview - Amplify Energy is an independent oil and natural gas company focused on the acquisition, development, exploitation, and production of oil and natural gas properties [3] - The company's operations are concentrated in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas/North Louisiana, and the Eagle Ford (Non-op) [3]

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