# Amplify Energy Corp.

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> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Amplify Energy Corp.).

## Overview

Amplify Energy Corp. is an independent oil and natural gas producer focused on acquiring, developing, exploiting, and producing oil and gas properties in the United States. The company operates through a single reportable segment and has historically held assets in Oklahoma, the Rockies (Bairoil), offshore Southern California (Beta), East Texas/North Louisiana, and the Eagle Ford. Following a series of 2025 divestitures, its remaining portfolio is concentrated in Bairoil and Beta. Amplify sells crude oil, natural gas, and NGL production into market-based contracts, with revenues tied closely to commodity prices and customer demand. Its business is capital-intensive, operationally focused, and exposed to both commodity volatility and asset-level execution risk.

## Products & services

• Crude oil production from operated properties
• Natural gas production from operated properties
• NGL sales extracted during gas processing
• Acquisition and development of oil and gas assets
• Recompletion, workover, and field operations
• Offshore Beta platform production operations

- **Oil production** (72%) — Crude oil produced from onshore and offshore properties and sold at prevailing market prices.
- **Natural gas production** (18%) — Natural gas volumes produced from company-operated properties and sold into U.S. markets.
- **NGL sales** (10%) — Natural gas liquids extracted during processing and sold as a separate revenue stream.

- Crude oil production from operated properties
- Natural gas production from operated properties
- NGL sales extracted during gas processing
- Acquisition and development of oil and gas assets
- Recompletion, workover, and field operations
- Offshore Beta platform production operations

## Customers

Amplify sells production to a small number of commodity purchasers and refiners rather than to end consumers. Its customer base includes large downstream and midstream counterparties that buy crude oil, natural gas, and NGL volumes under market-based sales agreements. The company disclosed that Phillips 66 and HF Sinclair were major customers in 2025, and that the closure of Phillips 66’s Los Angeles-area refinery required it to replace Beta sales with other buyers. Because sales contracts are typically short-term and price-based, customer concentration and local market access are important to revenue stability. The company also relies on counterparties that can take production from specific basins or offshore assets without interrupting flow.

- **Refiners** (primary) — Buy crude oil production, especially from the Beta offshore asset, to feed refinery operations and secure local supply.
- **Energy marketers and commodity purchasers** (primary) — Buy natural gas and oil volumes under market-based contracts to aggregate, transport, or resell production.
- **NGL purchasers** (secondary) — Buy natural gas liquids extracted during processing for downstream industrial and fuel uses.
- **Regional replacement buyers** (secondary) — Step in when a major customer exits a basin or refinery closes, helping preserve offtake continuity.

- Refiners buying crude oil from Beta and other producing assets
- Energy marketers and purchasers buying natural gas volumes
- NGL buyers purchasing liquids separated during gas processing
- Large counterparties such as Phillips 66 and HF Sinclair
- Regional buyers that can replace lost offtake when a refinery closes
- Customers seek market-priced supply rather than bespoke product specs

## Geography

Amplify’s revenues are derived entirely from the continental United States, so the company has no international revenue diversification. Operationally, its remaining asset base is concentrated in Bairoil in the Rockies and Beta in federal waters offshore Southern California. Historically it also operated in Oklahoma, East Texas/North Louisiana, and the Eagle Ford, but those assets were divested in 2025. This geographic concentration makes the company highly sensitive to basin-specific operating costs, local infrastructure, offshore regulatory requirements, and regional customer access. Beta is especially important because it depends on offshore logistics and nearby refinery demand, while Bairoil is a smaller onshore producing area that supports the remaining portfolio.

- **United States** (100%) — Production revenues are derived entirely from the continental United States.

- All production revenues come from the continental United States
- Remaining core assets are Bairoil and Beta after 2025 divestitures
- Beta is offshore Southern California and tied to local refinery demand
- Bairoil is the remaining onshore Rockies asset
- Former operating areas included Oklahoma, East Texas/North Louisiana, and Eagle Ford
- Geographic concentration increases exposure to basin-specific disruptions

## Strategy

Amplify’s near-term strategy is centered on simplifying the portfolio and concentrating capital on its remaining core assets, especially Beta. The company indicated that 2026 capital spending is expected to be allocated 97% to Beta and 3% to Bairoil, showing a clear focus on the highest-priority producing areas. It also intends to fund the capital program from internally generated cash flow and cash on hand, which suggests a disciplined balance-sheet and liquidity posture. After the 2025 divestitures, the company is operating with a smaller but more focused asset base, which should improve management attention and capital allocation efficiency. The business also continues to use commodity derivatives to reduce price volatility and support cash flow planning.

- **Concentrate investment in Beta** (short-term) — Beta is the largest remaining capital allocation and a key source of future production and cash flow.
- **Maintain disciplined capital spending** (short-term) — The company wants to preserve liquidity and fund operations without relying heavily on external financing.
- **Simplify the asset portfolio** (medium-term) — Divestitures reduce operational spread and allow management to focus on the remaining core properties.

- Concentrate capital on Beta and Bairoil after portfolio simplification
- Use divestitures to reduce asset complexity and focus management time
- Fund 2026 capex from internal cash flow and cash on hand
- Maintain production through recompletions, workovers, and field optimization
- Use commodity derivatives to reduce exposure to oil and gas price swings
- Replace lost Beta offtake with new customers after refinery closure

## Risks

Amplify’s results are highly sensitive to oil, natural gas, and NGL prices, which are volatile and outside management’s control. Customer concentration is a major risk because a small number of buyers accounted for a large share of revenue, and the closure of Phillips 66’s Los Angeles-area refinery showed how quickly offtake can change. The company also faces operational risk from mature reservoirs, offshore production complexity at Beta, and dependence on third-party contractors for drilling and field services. Regulatory, environmental, and climate-related risks are material because the business operates in carbon-intensive production and offshore settings where permitting, remediation, and compliance costs can rise. In addition, derivative mark-to-market volatility, reserve estimation uncertainty, and asset retirement obligations can materially affect reported earnings and cash flow.

- **Oil, natural gas, and NGL price volatility** [high] — Revenue and cash flow depend primarily on prevailing commodity prices, which fluctuate with supply, demand, and macro conditions.
- **Customer concentration and loss of offtake** [high] — A small number of customers accounted for a large share of revenue, so losing one buyer can interrupt sales and reduce realized prices.
- **Operational and regulatory risk at offshore Beta** [high] — Offshore assets require specialized infrastructure, compliance, and logistics, increasing the chance of outages or cost overruns.
- **Reserve estimation and impairment risk** [medium] — Oil and gas reserve estimates affect DD&A, asset carrying values, and impairment testing, all of which are judgment-intensive.
- **Environmental and climate-related liabilities** [medium] — Remediation, emissions regulation, and asset retirement obligations can increase costs and create contingent liabilities.

- Commodity price volatility directly affects revenue, margins, and cash flow
- Customer concentration can disrupt sales if a major buyer exits or reduces volumes
- Offshore Beta operations carry higher operational and regulatory complexity
- Mature reservoirs may require more workovers and capital to sustain output
- Third-party drilling and service availability can raise costs or delay projects
- Environmental, climate, and permitting pressures can increase compliance burden
- Derivative fair value changes can create earnings volatility

## Accounting

Amplify’s accounting is heavily influenced by oil and gas reserve estimates, fair value measurements, and asset retirement obligations. Because it uses the successful efforts method, acquisition and development costs are capitalized and then depleted using units-of-production, so reserve revisions can materially change DD&A expense and asset values. The company also recognizes changes in the fair value of unsettled commodity derivatives in earnings because hedge accounting is not elected, which can create quarter-to-quarter volatility unrelated to physical production. Environmental remediation accruals, contingencies, and insurance-related estimates require management judgment and can move materially as new information becomes available. Deferred tax asset realizability is another sensitive area because future taxable income assumptions and tax planning strategies affect whether tax benefits are recognized.

- **Reserve estimates and units-of-production depletion** — Affects DD&A and asset values
- **Commodity derivative fair value accounting** — Creates non-cash earnings volatility
- **Asset retirement obligations** — Affects liabilities, cash planning, and restricted investments
- **Environmental remediation and contingencies** — Can materially affect expenses and liabilities
- **Deferred tax asset realizability** — Affects tax assets and reported equity

- Successful efforts accounting makes reserve estimates central to DD&A and asset carrying values
- Commodity derivatives are marked to fair value through earnings, creating volatility
- Asset retirement obligations and restricted investments affect long-term liabilities and cash collateral
- Environmental remediation accruals depend on management estimates of probable costs
- Contingencies and insurance accounting can change with new claims or site information
- Deferred tax asset realizability depends on future taxable income assumptions

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*Last updated: 2026-08-11T04:46:20.861576+00:00*