Amplify Energy Corp. (AMPY): Results of Operations and Financial Condition
Amplify Energy Corp. (AMPY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Amplify Energy Announces Second Quarter 2026 Results and Approval of Share Repurchase Program HOUSTON, August 10, 2026 -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) today announced operating and financial results for the second quart
How this was made
The 30-second read
Why it matters
Key tradable elements are the $15.0 million buyback authorization (about 10% of shares using recent prices) and operational/cost catalysts: Beta drilling progress, royalty relief at Beta effective May 1, 2026, and a June 1 CO2 agreement amendment at Bairoil expected to reduce CO2 costs by about $5.0 million per year.
Market read
Traders can frame the stock around a near-term capital-return catalyst (repurchase start Aug. 11) and whether the disclosed royalty relief and CO2 cost savings improve cash flow trajectory.
What to watch
Net income was driven by a large non-cash unrealized gain on commodity derivatives; traders may discount earnings quality and focus on whether royalty relief and CO2 cost savings translate into sustained free cash flow.
Amplify Energy Announces Second Quarter 2026 Results and Approval of Share Repurchase Program
Production, oil revenue excluding hedges and Adjusted EBITDA improved from the prior quarter, supported by Beta royalty relief and higher crude pricing. Net income of $17.3 million was primarily attributable to a $22.6 million non-cash unrealized gain on commodity derivatives, Free Cash Flow remained negative $12.9 million, and the Company updated realized commodity-price assumptions for larger marketing deducts.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income (loss)GAAP | $17.3 million | – | – |
| Net cash provided by (used in) operating activitiesGAAP | $2.8 million | – | – |
| Average daily productionother | 6.8 MBoe/d | an increase of approximately 6% | – |
| Total revenues excluding hedgesother | $52.7 million | – | – |
| Total oil revenues before the impact of derivativesother | approximately $52.6 million | – | – |
| Net loss on commodity derivativesother | $13.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $8.6 million | an increase of $4.8 million | – |
| Adjusted net income (loss)non-GAAP | $ (1.7) | a decrease of $2.1 million | – |
| Free Cash Flownon-GAAP | $ (12.9) | – | – |
| Total capitalother | $20.7 million | – | – |
| Lease operating expensesother | approximately $22.7 million | – | – |
| Severance and ad valorem taxesother | approximately $3.0 million | – | – |
| Severance and ad valorem taxes as a percentage of revenueother | approximately 5.8% | – | – |
| Gathering, processing and transportation expensesother | approximately $0.7 million, or $1.11 per Bbl | – | – |
| Cash G&A expensesother | approximately $5.1 million | – | – |
| Depreciation, depletion, and amortization expenseGAAP | approximately $4.9 million | – | – |
| Net interest expenseGAAP | $0.9 million | – | – |
| Deferred income tax expenseGAAP | $5.9 million | – | – |
| Average Brent Priceother | $ 96.80 | – | – |
| Average WTI Priceother | $ 92.79 | – | – |
| Average sales price exclusive of realized derivativesother | $ 85.41 | – | – |
| Realized derivativesother | (22.13) | – | – |
| Average sales price inclusive of realized derivativesother | $ 63.27 | – | – |
Full-year 2026 outlook
- Operating expensesLease operating expense guidance: $80.0 to $95.0 million; cash G&A: $17.0 to $22.0 million
- NoteThe Company updated its guidance to reflect larger deducts in its realized commodity price assumptions.
- NoteThe Company expects to further reduce its CO₂ costs at Bairoil by approximately $5.0 million per year.
- NoteThe amended agreement, together with the initial CO₂ agreement announced in 2025, is expected to generate approximately $10 million in annual cost savings compared to the prior agreement.
Capital returns
- On August 6, 2026, the board of directors approved a share repurchase program authorizing the repurchase of up to $15.0 million of common stock.
- Using recent prices, a fully executed program would represent approximately 10% of outstanding shares.
- Repurchases may begin after market open on August 11, 2026 and continue through and including December 31, 2026.
What drove it
- Average daily production was approximately 6.8 MBopd and 100% crude oil.
- Beta average daily production increased by approximately 11% compared to the prior quarter, while Bairoil average daily production increased by 1%.
- Beta royalty relief, effective May 1, 2026, reduced the royalty burden from approximately 25.0% to approximately 12.5%.
- Since May 1, 2026, royalty relief increased average net production by over 600 bbls/d while improving revenue and cash flow by approximately $3.0 million.
- The C29 well was completed in June with a peak IP30 of approximately 525 Bopd, and the C16 well was completed in July with a peak IP30 of approximately 550 Bopd.
- Net income was primarily attributable to a $22.6 million non-cash unrealized gain on commodity derivatives.
- The June 1, 2026 CO₂ Agreement amendment is expected to lower lease operating expenses through a larger Section 45Q tax-credit rebate.
Concerns
- Free Cash Flow was negative $12.9 million.
- The Company realized a net loss on commodity derivatives of $13.6 million during the second quarter of 2026.
- Marketing deducts have increased as refining capacity in California declines, reducing the number of available outlets for locally produced crude oil.
- The Company updated realized commodity-price assumptions for the balance of the year to reflect larger deducts.
- Severance and ad valorem taxes were higher than the prior quarter due to higher physical prices.
- The share repurchase program does not obligate the Company to acquire any particular amount of common stock and may be terminated or suspended at any time.
What to watch
- Execution of the up to $15.0 million share repurchase program through and including December 31, 2026.
- Beta production following the C29 and C16 well completions and the continuation of royalty relief, which is subject to pricing and production thresholds.
- Progress on offshore buoys, new pipeline connections and trucking intended to expand Beta marketing options and improve pricing.
- Realization of the expected approximately $5.0 million per year reduction in Bairoil CO₂ costs.
- Progress in the strategic evaluation of Bairoil’s potential role in carbon storage and low-carbon initiatives.
Balance sheet and cash flow
- As of June 30, 2026, the Company had no outstanding debt under its revolving credit facility.
- Liquidity was $36.2 million, consisting of $21.2 million of cash on hand and available borrowing capacity of approximately $15.0 million.
- Net cash provided by operating activities was $2.8 million.
- Free Cash Flow was negative $12.9 million.
- Total capital was $20.7 million.
Analysis
Amplify reported a marked sequential improvement in operating activity. Average daily production was 6.8 MBoe/d versus 6.4 in the first quarter, and the Company described production as approximately 6.8 MBopd and 100% crude oil. Beta average daily production increased by approximately 11%, while Bairoil increased by 1%. The May 1 royalty relief at Beta reduced the royalty burden from approximately 25.0% to approximately 12.5%, and the Company said this relief increased average net production by over 600 bbls/d and improved revenue and cash flow by approximately $3.0 million since that date.
Total revenues excluding hedges were $52.7 million, compared with $37.5 in the first quarter. The reported average sales price exclusive of realized derivatives was $85.41, compared with $64.93, while the realized-derivatives line was (22.13), compared with (4.43). Amplify recorded a $13.6 million net loss on commodity derivatives. Higher physical prices also drove severance and ad valorem taxes to approximately $3.0 million, although the Company said taxes as a percentage of revenue were approximately 5.8% and in line with guidance.
GAAP net income was $17.3 million after a first-quarter net loss of $38.1 million, but the release attributes second-quarter income primarily to a $22.6 million non-cash unrealized gain on commodity derivatives. Adjusted EBITDA rose to $8.6 million from $3.8, while Adjusted Net Loss was $1.7 million compared with $3.9 million. Operating cash flow was $2.8 million, down from $4.5 million, and Free Cash Flow remained negative $12.9 million despite improving from negative $18.1 million. Total capital was $20.7 million.
Cost actions provide an important offset. Lease operating expenses were approximately $22.7 million and full-year 2026 guidance was reduced to $80.0 to $95.0 million. The June 1 CO₂ Agreement amendment is expected to further reduce Bairoil CO₂ costs by approximately $5.0 million per year, and the Company expects the amended agreement together with the initial 2025 agreement to generate approximately $10 million in annual cost savings compared with the prior agreement. Cash G&A was approximately $5.1 million versus $6.3 million in the first quarter, and the full-year cash G&A range remains $17.0 to $22.0 million.
The outlook includes a countervailing marketing issue at Beta. Declining California refining capacity has reduced available outlets for locally produced crude oil and increased marketing deducts, prompting Amplify to update realized commodity-price assumptions for the balance of the year. The Company is pursuing offshore buoys, new pipeline connections and trucking. Capital allocation shifted toward shareholder returns with a board-approved authorization to repurchase up to $15.0 million of common stock through and including December 31, 2026. At June 30, liquidity was $36.2 million, including $21.2 million of cash, and there was no outstanding debt under the revolving credit facility.
Management, verbatim
Amplify continues to focus on activities that we expect will meaningfully enhance shareholder returns. In the past two months, Amplify successfully drilled and completed the C29 and C16 wells at Beta. Both wells were drilled in the Joulters fault block and are producing at expected rates. These two new wells, in combination with royalty relief, have meaningfully increased our net production, revenue and cash flow at Beta.
Dan Furbee, Chief Executive Officer
At Bairoil, we continued to make progress on our carbon storage initiatives. Effective June 1, we amended our CO₂ purchase agreement to increase the amount of CO₂ delivered to the field. This additional CO₂ also qualifies for Section 45Q tax credits, which will generate a larger rebate from our CO₂ supplier. We expect the amended contract will lower lease operating expenses by approximately $5.0 million per year.
Dan Furbee, Chief Executive Officer
In addition to the positive developments at Beta and Bairoil, the Company’s board of directors approved a share repurchase program. We believe the Company’s stock is trading at a meaningful discount to its net asset value and repurchasing up to $15.0 million will be accretive to our shareholders.
Dan Furbee, Chief Executive Officer
Not in the filing
stated, not guessed- The filing text is truncated after the beginning of the “Second Quarter Capital Investments” section, so any metrics or guidance appearing after that point are unavailable.
- GAAP total revenue.
- GAAP gross profit and gross margin.
- GAAP operating income or loss and operating margin.
- GAAP earnings per share, diluted earnings per share, and weighted-average shares.
- Non-GAAP earnings per share.
- Prior-year comparisons for reported metrics.
- Segment revenue for Beta and Bairoil.
- A numerical full-year 2026 production guidance figure.
- A numerical full-year 2026 capital-investment guidance figure.
- A numerical full-year 2026 realized commodity-price guidance assumption.
- Tax-rate guidance.
- Dividend amount or dividend declaration.
- Cash balance prior-quarter comparison.
- Debt balance prior-quarter comparison.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) where Amplify reports Q2 2026 operating and financial results and announces board approval of a share repurchase program.
Ticker impact
Amplify reported Q2 2026 results and disclosed a board-approved $15.0 million share repurchase program starting Aug. 11, 2026.
Moderate upside bias with potential volatility around Aug. 11 repurchase start and any follow-through on Beta/Bairoil cost savings.
The filing is a primary disclosure with specific buyback authorization and quantified operational/cost items (royalty burden cut, CO2 cost reduction expectation). However, the excerpt does not include full guidance or realized commodity-price sensitivity, limiting conviction on magnitude.
Market effects
Reinforces capital-return and cost-reduction themes in small-cap US oil and gas, potentially supportive for peer sentiment but not a sector-wide catalyst.
Limited, as the operational updates are company-specific (Beta in Joulters fault block, Bairoil in Wyoming).
Low, no direct global macro or commodity shock beyond company-level derivative impacts.
Counterpoint
Adjusted EBITDA improved, but Free Cash Flow was negative in Q2, suggesting buyback support may not fully offset underlying cash-generation constraints.
Key entities
- issuerAmplify Energy Corp.
NYSE-listed company filing the 8-K with Q2 2026 results, Beta/Bairoil operational updates, and a $15.0 million share repurchase authorization.
- governanceBoard of directors
Approved the repurchase program on Aug. 6, 2026, authorizing up to $15.0 million through Dec. 31, 2026.
