Amplify Energy Corp. Annual Report - A Look Back at 2025

Considering an investment in Amplify Energy Corp.? This summary offers a clear, concise overview of the company's performance and strategic direction for the fiscal year ended December 31, 2025. It provides essential insights to help you understand its investment potential.

Quick Facts (as of February 28, 2026, unless otherwise noted):

• Stock Ticker: AMPY (listed on the NYSE)
• Market Value: Approximately $100 million
• Shares Outstanding: About 41.3 million shares
• Filing Status: An "accelerated filer," meaning Amplify Energy meets reporting deadlines faster than smaller companies, though it is not a "well-known seasoned issuer."

Business Overview

Amplify Energy Corp. is an independent oil and natural gas company. It primarily focuses on acquiring, developing, and producing crude oil, natural gas, and natural gas liquids. The company operates as a single business segment, concentrating its efforts on these core energy production activities. Its operations span various basins, including Wyoming's Bairoil field, the East Texas/North Louisiana region, and offshore California.

For fiscal year 2025, Amplify Energy produced approximately 10,000 barrels of oil equivalent per day (BOE/d) on average. This figure represents a decrease from the prior year, mainly due to natural production declines and the sale of certain assets.

Financial Performance

Amplify Energy's 2025 financial results reflected a challenging commodity price environment and the ongoing impact of past events. The company reported total revenues of approximately $250 million, a 15% decrease from 2024. Lower realized commodity prices and reduced production volumes primarily drove this decline. As a result, Amplify Energy reported a net loss of $30 million for the year, a shift from the $10 million net income it achieved in the previous fiscal year. Adjusted EBITDA, a key measure of operational cash flow, reached approximately $70 million. Capital expenditures for the year totaled $40 million, primarily supporting existing production and essential infrastructure.

Risk Factors

Investors should be aware of several key risks that could significantly affect Amplify Energy's business, financial condition, and operational results:

• Commodity Price Volatility: As an oil and gas producer, Amplify Energy's financial performance is highly sensitive to fluctuations in crude oil and natural gas prices. Significant declines in commodity prices could negatively impact revenues, profitability, and the value of its proved reserves.
• Customer Concentration: The company relies heavily on a few major customers. In 2025, its top three customers (Sinclair Oil & Gas Company, Phillips 66, and Southwest Energy LP) accounted for approximately 60% of total revenue. A significant reduction in business from any of these customers could materially impact revenues.
• Beta Pipeline Incident: The "Beta Pipeline Incident" from October 2021 continues to pose significant financial, legal, and reputational risks. The company faces potential for further costs, liabilities, and adverse judgments related to this event.
• Regulatory and Environmental Risks: Operating in the energy sector, especially with offshore assets, exposes the company to evolving environmental regulations, increased scrutiny, and potential costs associated with compliance, decommissioning, and climate change initiatives.
• Operational Risks: Oil and gas production inherently involves risks such as natural production declines, drilling hazards, unexpected operational disruptions, equipment failures, and the inherent dangers of operating in complex environments.
• Access to Capital: The company's ability to fund future operations, capital expenditures, and debt obligations depends on its cash flow from operations and access to capital markets. Commodity prices, market conditions, and lender sentiment can all influence this access.

Management Discussion and Analysis (MD&A) Highlights

Management's discussion highlighted key factors impacting the company's financial condition and operational results for 2025.

Operational and Strategic Developments: The "Beta Pipeline Incident" from October 2021 remains a significant ongoing challenge. In 2025, the company incurred an additional $5 million in legal and remediation costs related to this event, bringing the cumulative financial impact to over $100 million since 2021. This incident continues to generate legal liabilities and accounts receivable, affecting the company's financial flexibility and public perception.

In a significant strategic shift, Amplify Energy actively pursued and completed the sale of its non-core Eagle Ford properties and its Oklahoma and Magnify Energy Services LLC operations during 2025. These divestitures generated approximately $70 million in gross proceeds. The company primarily used these funds to reduce outstanding debt and enhance liquidity. This move streamlines operations, reduces future abandonment liabilities, and focuses the company on its most profitable, long-life assets.

Leadership and Strategic Direction: Daniel Furbee continues to serve as Chief Executive Officer. The strategic decision to divest non-core assets clearly signals a shift towards a more focused and streamlined operational model. This move aims to enhance profitability, reduce operational complexity, and strengthen the balance sheet by reducing debt and future liabilities. It aligns with the company's long-term strategy to maximize shareholder value from its core assets.

Financial Health

As of December 31, 2025, Amplify Energy held approximately $15 million in cash and cash equivalents. The company manages its short-term liquidity through a revolving credit facility, having drawn $150 million out of an available $250 million. This leaves a remaining borrowing capacity of $100 million. Total long-term debt stood at $200 million, resulting in a debt-to-Adjusted EBITDA ratio of approximately 2.8x, which indicates a moderate leverage position.

The company also faces substantial long-term commitments. These include estimated future abandonment obligations for pipelines and offshore platforms totaling approximately $120 million, with $40 million currently accrued. Amplify Energy typically funds these obligations through a combination of cash flow and dedicated escrow accounts. Additionally, Amplify has carbon dioxide purchase commitments totaling $15 million over the next five years. Management believes that current cash on hand, anticipated cash flow from operations, and available borrowing capacity under its credit facility will sufficiently meet its liquidity needs for the foreseeable future.

Future Outlook

For 2026, Amplify Energy expects average daily production to range from 9,000-9,500 BOE/d. This forecast reflects the impact of asset sales and a continued focus on capital discipline. The company plans to invest approximately $35 million in capital expenditures, primarily directing these funds towards maintenance and optimization activities across its remaining asset portfolio. The strategic focus for the coming year centers on maximizing cash flow from existing assets, further debt reduction, and disciplined capital allocation to enhance shareholder value. Management anticipates continued efforts to optimize its cost structure and improve operational efficiencies.

Competitive Position

Amplify Energy operates in a highly competitive industry, facing numerous larger, well-capitalized players, as well as smaller independent companies. Competition primarily arises in acquiring properties, exploring and developing reserves, and marketing oil and natural gas. Key competitive factors include access to capital, technical expertise, operating costs, and the ability to identify and develop attractive drilling prospects. The company's strategy of divesting non-core assets suggests a focus on optimizing its existing, mature asset base for cost-efficient production and cash flow generation, aiming to compete effectively within its niche.

Market and Regulatory Environment

The company's performance will continue to be influenced by global energy demand, geopolitical events affecting commodity prices, and the broader energy transition. Increasing regulatory pressure regarding environmental standards, emissions, and decommissioning obligations, particularly for offshore operations, represents an ongoing trend that could impact future costs and operational strategies. Rising interest rates also pose a risk to debt servicing costs.