Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors

You're defintely right to question the volatility in Amplify Energy Corp. (AMPY)'s recent financials, especially as they execute a major strategic pivot to become more oil-weighted. The direct takeaway is that while the company is aggressively high-grading its portfolio-selling non-core assets like the non-operated Eagle Ford for $23 million and marketing East Texas and Oklahoma assets-the near-term results are messy. We saw a net loss of approximately $21.0 million in the third quarter of 2025, which was largely due to an impairment charge, and this followed a net income of $6.4 million in the prior quarter. Still, the operational story is compelling: average daily production hit 19.7 MBoepd (thousand barrels of oil equivalent per day) in Q3, and their core Beta development program is delivering, with new wells projected to have an Internal Rate of Return (IRR) of over 100%. That's a huge return. So, you have a trailing twelve months (TTM) revenue of roughly $0.27 Billion USD against a manageable Net Debt to Last Twelve Months (LTM) Adjusted EBITDA ratio of 1.5x, meaning the balance sheet is stable, but the path to stable profitability is still a work in progress.

Revenue Analysis

You need a clear picture of where Amplify Energy Corp. (AMPY) is making its money, and the short answer is that while total revenue is down, the company is executing a deliberate, high-stakes portfolio simplification. For the trailing twelve months (TTM) leading up to the end of Q3 2025, Amplify Energy Corp.'s revenue stood at approximately $275.83 million, which represents a year-over-year decline of 9.46%. This drop isn't just market noise; it's a direct result of lower commodity prices and a strategic move to shed non-core assets.

The most recent quarterly data, Q3 2025, shows total revenue of $64.24 million, a 5.7% year-over-year drop from Q3 2024. This decline happened despite an increase in production, which tells you that weaker commodity prices are the primary headwind right now. You're seeing the impact of a low-price environment amplified by the company's asset rationalization strategy-it's a calculated risk.

Breaking Down the Product Mix

Amplify Energy Corp.'s revenue is almost entirely derived from the sale of hydrocarbons: crude oil, natural gas, and natural gas liquids (NGLs). For Q3 2025, the product mix highlights a near-even split between oil and gas, though the company is actively pushing to become more oil-weighted.

Here's the quick math on the Q3 2025 product mix, based on the volume of production, which drives the revenue streams:

The total oil, natural gas, and NGL revenues for that quarter were approximately $64.2 million before the impact of derivatives. This mix is a slight reversal from Q2 2025, which saw crude oil at 48% of the mix, but the long-term goal is still to increase the oil weighting, especially at the high-margin Beta field.

Strategic Shift: Divestitures and Core Focus

The most significant change to Amplify Energy Corp.'s revenue structure isn't an organic growth story; it's a deliberate portfolio reset. The company is simplifying its operations to focus on its highest-upside assets: the Beta field offshore Southern California and the Bairoil field in the Rockies.

To fund this focus and strengthen the balance sheet, Amplify Energy Corp. is selling off non-core assets. They're getting leaner, defintely.

• Divesting Oklahoma and East Texas assets for $220.0 million.
• Proceeds will pay down debt and accelerate Beta development.
• Eagle Ford assets were already divested in Q2 2025.

This means future revenue will be concentrated in the Beta and Bairoil regions, making the company less geographically diverse but, hopefully, more profitable per barrel of oil equivalent (Boe). The divestitures are expected to close in Q4 2025, so you'll see a cleaner, more focused revenue profile starting in 2026. If you want to dive deeper into who's betting on this new focus, you should read Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need a clear picture of Amplify Energy Corp. (AMPY)'s ability to turn revenue into profit, especially given the volatility in the energy sector. The most recent data from the third quarter of 2025 shows a sharp swing in GAAP profitability, driven by non-recurring charges, but core operational efficiency is showing some positive signs.

The headline number is a GAAP net loss of approximately $21.0 million for Q3 2025, translating to a Net Profit Margin of about -32.7% on total revenue of $64.2 million. This massive loss is not a sign of core business failure, but rather the result of a significant impairment charge recognized as the company markets its Oklahoma and East Texas assets for divestiture. If you strip out this and other one-time impacts, the Adjusted Net Loss for the quarter was a more manageable $6.0 million, or a -9.3% Adjusted Net Profit Margin. The real story is in the operational costs.

Operational Efficiency and Gross Margin Trends

Analyzing the gross profit margin (Gross Profit Margin) and operational efficiency gives a better view of the core business health, before non-cash charges like impairment. While the explicit Q3 2025 GAAP Gross Profit is not detailed, we can look at key operational costs and the prior quarter's performance to gauge the trend.

• Gross Profit Margin in Q2 2025 stood at 22.31%, indicating that the company's production costs were eating up nearly 78% of its revenue.
• Lease Operating Expenses (LOE), a key metric for an exploration and production (E&P) company, decreased by $3.0 million in Q3 2025 to approximately $35.6 million, a sign of better cost management.
• The operational focus is defintely shifting toward the high-upside Beta and Bairoil assets, which should drive further cost savings-like the projected $10 million per year from Bairoil upgrades.

The trend in net profitability for 2025 has been volatile, which is common in an E&P company undergoing strategic asset sales. Amplify Energy Corp. posted a GAAP net loss of approximately $5.9 million in Q1 2025, swung to a net income of approximately $6.4 million in Q2 2025, and then fell to the $21.0 million net loss in Q3 2025.

Industry Comparison: AMPY vs. E&P Peers

When you stack Amplify Energy Corp.'s profitability ratios against the industry median for Oil and Gas Extraction companies in 2024, the company is clearly lagging in GAAP performance. This gap is the risk you map to the current strategic restructuring.

Here's the quick math on how Amplify Energy Corp. compares to the industry median:

What this comparison hides is that the industry median includes larger, more diversified players. Amplify Energy Corp.'s strategic divestiture of its Oklahoma and East Texas assets for $220.0 million is designed to close this profitability gap by reducing debt and focusing capital on the high-return Beta field. The near-term pain of the impairment charge is a necessary step to potentially achieve a more competitive gross and operating margin in 2026.

For a full breakdown of the company's financial position, including valuation and strategy, you can read the full post: Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors.

Next step: Dig into the details of the $220.0 million asset sale and the planned debt reduction to model the 2026 cash flow impact.

Debt vs. Equity Structure

You're looking at Amplify Energy Corp. (AMPY) and wondering how they finance their operations, especially given the volatility in the energy sector. The quick takeaway is this: Amplify Energy Corp. has a relatively low debt load compared to its peers, and a recent strategic shift is set to make its balance sheet even stronger, moving toward a minimal-debt structure.

As of September 2025, Amplify Energy Corp.'s total debt stood at $123.0 million, primarily held under its revolving credit facility (RBL). This is the company's main source of debt financing. The total shareholder equity at the same time was approximately $393.0 million.

Here's the quick math on their leverage:

• Debt-to-Equity Ratio: 0.31 or 31.3%.

This ratio is a measure of financial leverage, showing how much of the company's financing comes from debt versus shareholder funds. For context, the industry average for Oil and Gas Exploration and Production (E&P) companies is around 0.50. Amplify Energy Corp.'s ratio is defintely conservative, well below the industry benchmark, which is a sign of financial discipline.

The company's short-term liabilities, which are obligations due within one year, were approximately $83.3 million as of October 2025. This includes current portions of debt and other liabilities, but the core long-term debt is the RBL balance. The borrowing base on that RBL facility was reaffirmed at $145 million in May 2025, a key signal of lender confidence despite commodity price volatility.

The real story here is the strategic pivot. In late 2025, Amplify Energy Corp. announced the divestiture of its Oklahoma and East Texas assets for a total consideration of $220.0 million. This is a massive move. The company explicitly intends to use the proceeds to pay down its outstanding debt and accelerate its high-return development drilling program at the Beta field.

This asset sale fundamentally changes the debt-to-equity balance, as the net debt on the credit facility is expected to become minimal, pro forma for the East Texas sale alone. They are swapping non-core assets for a nearly debt-free balance sheet, which gives them immense flexibility to fund growth with equity-generated cash flow-a much safer path in this capital-intensive industry. They were also planning a 5-year senior unsecured bond offering in March 2025, with proceeds intended to partially repay the RBL. However, the later, larger asset sales are the definitive action for debt reduction.

The company is choosing to simplify its portfolio and focus capital on its core, high-return Beta and Bairoil assets, shifting from debt financing to funding growth primarily through retained earnings and cash flow. This is a clear, actionable strategy for investors to track. You can look deeper into the company's asset focus by reading Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who's Buying and Why?

Here is a summary of the key financing metrics for a quick comparison:

Liquidity and Solvency

You want to know if Amplify Energy Corp. (AMPY) has the cash to cover its near-term bills, and the answer is nuanced: the underlying operational cash flow is solid, but the balance sheet is tight without the strategic asset sales. The company's short-term liquidity, measured by the Current Ratio, was 1.05 as of September 2025, meaning current assets just barely cover current liabilities.

This is a minimal buffer. When you look at the Quick Ratio (Acid-Test Ratio), which strips out inventory-often harder to liquidate quickly in the energy sector-the picture gets tighter. Amplify Energy Corp. (AMPY)'s Quick Ratio was 0.48 near the end of the 2025 fiscal year, which is defintely a red flag for immediate liquidity. This low ratio signals a reliance on selling inventory or receiving receivables to meet obligations, especially since the net debt calculation implies the company has virtually $0 million in cash and cash equivalents on hand as of September 30, 2025.

Working Capital and Cash Flow Dynamics

The working capital position is clearly under pressure, but the cash flow statement tells a more complex story. In the third quarter of 2025, Amplify Energy Corp. (AMPY) generated net cash from operating activities of $13.4 million. That is healthy, but the aggressive capital spending is what turns the tide.

Here's the quick math on cash flow trends for Q3 2025:

• Operating Cash Flow (OCF): Positive $13.4 million. This is the core business generating cash.
• Investing Cash Flow (CapEx): Cash capital investment was high at approximately $17.5 million, primarily focused on the Beta drilling program.
• Free Cash Flow (FCF): The net result was a negative FCF of $0.7 million for the quarter. The company is spending slightly more on capital projects than it is generating after operating costs.

This negative FCF trend, while expected due to the Beta development, is what keeps the liquidity metrics low. Still, the underlying operational strength is what makes the forthcoming strategic move so impactful. To understand who is betting on this turnaround, you should read Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who's Buying and Why?

The $220 Million Liquidity Catalyst

The real game-changer for the balance sheet is the announced divestiture of the Oklahoma and East Texas assets for a total consideration of $220.0 million. This is a massive liquidity injection that will fundamentally reset the company's financial structure. The plan is to use these proceeds to pay down the total debt, which stood at $123.0 million under the revolving credit facility as of September 30, 2025.

This action moves the company from a tight liquidity position to one with significant financial flexibility. The key strength isn't the current ratios; it's the clear, actionable plan to de-lever and focus on the higher-upside Beta and Bairoil assets. The debt reduction will immediately strengthen the solvency profile, which is a much bigger concern than the short-term working capital gap.

Valuation Analysis

You want to know if Amplify Energy Corp. (AMPY) is a bargain or a trap. Looking at the numbers as of November 2025, the stock appears undervalued on an asset and cash-flow basis, but its P/E ratio suggests a more neutral, or slightly high, earnings valuation compared to the broader energy sector. The key takeaway is that its low Price-to-Book (P/B) ratio of 0.54 is a strong signal that the market values the company's net assets at less than half their book value.

This disconnect is common in companies undergoing a strategic pivot, like Amplify Energy Corp. (AMPY) with its recent asset divestitures to eliminate debt. You're seeing a classic value play here, but you have to understand the risk that comes with it.

The Core Valuation Multiples (2025 Fiscal Year)

To get a clear picture, we need to look at the three main valuation multiples: Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA). P/E tells you how much you're paying for a dollar of earnings, P/B shows the price relative to net assets, and EV/EBITDA measures the total company value against its operating cash flow (earnings before interest, taxes, depreciation, and amortization).

Here's the quick math on Amplify Energy Corp. (AMPY)'s current standing:

• Price-to-Earnings (TTM): 15.3
• Forward P/E (2025 Estimate): 12.70
• Price-to-Book (P/B): 0.54
• EV/EBITDA (Current TTM): 5.96

A P/B below 1.0 is defintely a flashing light for a potential value opportunity, suggesting the stock price of $5.77 as of mid-November 2025 is significantly below the value of the company's physical assets minus liabilities. The EV/EBITDA of 5.96 is also quite attractive for an oil and gas producer, especially when the forecasted annual EBITDA for 2025 is around $104 million.

Stock Trend and Shareholder Return

The stock price trend over the last 12 months tells a story of significant volatility and a challenging year. The price has decreased by 15.18% in the last year, though it has seen a recent surge, rising 22.20% in the last month alone. The 52-week price range has been wide, from a low of $2.27 to a high of $7.10. That's a massive swing, and it reflects the underlying business changes and commodity price uncertainty.

On the shareholder return front, don't expect a check in the mail. Amplify Energy Corp. (AMPY) is not a dividend stock; the current trailing twelve-month (TTM) dividend yield is 0.00%, and the payout ratio is also 0.00%. The focus is on debt reduction and capital investment, not returning capital to shareholders yet. This is a growth or turnaround play, not an income investment.

Analyst Consensus: Hold vs. Strong Buy

Wall Street is split on Amplify Energy Corp. (AMPY), which is often the case with turnaround stories. The consensus rating among a group of analysts is a Hold, with an average 12-month price target of $8.50. However, some analysts are more bullish, giving a Strong Buy rating with a price target as high as $11.00.

What this estimate hides is the execution risk of their Beta development program and the successful integration of their strategic divestitures, such as the sale of Oklahoma and East Texas assets to eliminate debt. If they hit their operational targets, the $11.00 target is achievable, representing a significant upside from the current price of $5.77. If you want to dig deeper into who is buying and why, you should read Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who's Buying and Why?

Your next step is to model the impact of their debt reduction and Beta field production on the 2026 free cash flow. That's the real driver here.

Risk Factors

You're looking at Amplify Energy Corp. (AMPY) and seeing a company in the middle of a major strategic pivot, which means the risk profile is elevated right now. The direct takeaway is this: while their debt-reduction plan is aggressive and smart, the business is highly exposed to commodity price swings and a persistent regulatory overhang from the 2021 oil spill. You need to weigh the upside of their focused Beta development against these two big threats.

Financial and Operational Headwinds

The biggest near-term risk is financial volatility, plain and simple. Amplify Energy Corp. reported a significant GAAP net loss of $20.97 million for the third quarter of 2025, a sharp reversal from the prior year. This loss highlights the challenge of managing a portfolio of mature assets and the impact of non-cash charges, like the impairment expense they recognized.

The company is working to strengthen its balance sheet, but the debt load is still a factor. As of September 30, 2025, total debt under the revolving credit facility stood at $123.0 million, giving them a net debt to last twelve months (LTM) Adjusted EBITDA ratio of 1.5x. That's manageable, but it doesn't leave much room for error, especially when Q1 2025 saw negative free cash flow of $7 million.

• Commodity price volatility is a constant threat.
• Execution risk on the $220.0 million asset sale is defintely high.
• Capital needs for the core Beta field are substantial.

External Risks: Regulatory and Market Exposure

For an offshore operator like Amplify Energy Corp., environmental and regulatory risk is a permanent fixture. The 2021 San Pedro Bay oil spill remains a canonical risk factor, even with the legal costs largely addressed. The company and its units pleaded guilty to a federal Clean Water Act violation, resulting in a $7.1 million criminal fine and an additional $5.8 million for federal programs. Plus, the class-action lawsuit settlement added another $50 million in liability, approved in 2023. These events invite continuous, heightened oversight from local, state, and federal regulators, which can slow down permitting and increase operational costs at their Beta field.

You also cannot ignore the market risk. The company's revenue is directly tied to the price of crude oil (WTI) and natural gas (Henry Hub). While they use commodity derivatives (hedges) to provide a floor-covering 2026-2027 production at weighted average prices of $62.29 WTI and $3.80-$3.96 Henry Hub-a sustained, deep downturn in energy prices would still materially impact their unhedged production and the value of their reserves.

Mitigation Strategies and Clear Actions

Management is taking clear, decisive action to mitigate these risks. Their strategy is a three-part plan: simplify the portfolio, strengthen the balance sheet, and focus resources on high-upside assets. Here's the quick math on their deleveraging plan:

The divestiture of non-core assets for $220.0 million is the linchpin. If they execute this sale successfully in Q4 2025, they will dramatically reduce debt and free up capital to accelerate development drilling at Beta, which is their highest-return asset. They are projecting Q4 2025 capital expenditures of $8.0-$12.0 million, with the majority going to Beta's C61 well and facility upgrades. It's a classic E&P (exploration and production) move: sell the low-margin gas assets to fund the high-margin oil assets. You can see their full strategic intent in their Mission Statement, Vision, & Core Values of Amplify Energy Corp. (AMPY).

Growth Opportunities

You're looking past the current quarter's noise and asking the right question: Where does Amplify Energy Corp. (AMPY) actually grow from here? The answer is simple: The company is laser-focused on simplifying its portfolio to become a pure-play, high-return oil producer, which is a smart move in this market. The strategy is to sell off non-core, gas-heavy assets and pour capital into their most profitable oil wells, primarily in the Beta field offshore Southern California.

This isn't a complex, multi-faceted growth story; it's a focused, capital-efficient drilling program. The key growth driver is the Beta Development Program. They've already seen success with new wells like the C54, which recorded 850 Bopd (barrels of oil per day) in production during Q2 2025, representing the strongest initial performance in the program to date. Here's the quick math: drilling success at Beta is projected to yield an Internal Rate of Return (IRR) greater than 90% on new wells, assuming a $60/bbl oil price. This is a phenomenal return profile, defintely what you want to see.

The strategic initiatives driving this growth are clear and action-oriented:

• Portfolio Simplification: Amplify Energy Corp. is shedding its non-core, non-operated assets. They sold their non-operated Eagle Ford assets for $23 million in July 2025.
• Debt Reduction: The biggest move is the planned divestiture of the East Texas and Oklahoma assets, which was announced in Q3 2025 for an expected $220 million. This cash infusion will be used to pay down debt, which was already reduced to $130 million as of June 30, 2025.
• Oil-Weighting Shift: This strategy is designed to increase the company's oil weighting, which rose from 41% of total production in Q2 2024 to 48% in Q2 2025. A higher oil weighting generally means better margins and less exposure to volatile natural gas prices.

The competitive advantage for Amplify Energy Corp. lies in the low-cost, high-return nature of its core assets. The Beta field's offshore shallow-water location allows for a low breakeven price of only $33/Bbl for new wells. This low cost structure provides a significant buffer against commodity price volatility compared to many onshore operators. Plus, the company's wholly owned subsidiary, Magnify Energy Services, is expected to generate approximately $5 million in Adjusted EBITDA in 2025, offering a small but stable revenue stream.

Looking at the near-term financial picture, analysts project the company's focus will translate into modest top-line growth. For the 2025 fiscal year, the forecast annual revenue is approximately $275,828,000. Earnings are expected to turn a corner, with the average analyst forecast for 2025 net income at about $12,984,700. Production guidance for the full year is a range of 19,000 to 21,000 barrels of oil equivalent per day (Boepd). The Q3 2025 average total production was 19.7 MBoepd, right in the middle of that range.

Here's a snapshot of the 2025 financial outlook, which shows the impact of their strategic focus:

What this estimate hides is the potential for a re-rating of the stock once the East Texas and Oklahoma asset sales close, likely in late Q4 2025 or early Q1 2026. That event will dramatically simplify the balance sheet and allow for further acceleration of the high-IRR Beta drilling program, which is the real upside story here. For more on the company's long-term view, you can check out the Mission Statement, Vision, & Core Values of Amplify Energy Corp. (AMPY).