Amplify Energy Reports Q2 2025 Financial Results with Decreased Revenues and Net Income

Amplify Energy Corp. reported its financial results for the second quarter of 2025, revealing a net income of $6.4 million, a decrease from $7.1 million in the same period last year. Total revenues for the quarter were $68.4 million, down from $79.5 million in the prior year, primarily due to a decline in oil and natural gas sales, which amounted to $66.8 million compared to $72.3 million in the previous year. The company attributed this decline to lower production volumes and realized prices, with average net production decreasing to 19.1 MBoe/d from 20.3 MBoe/d year-over-year.

In terms of operational metrics, Amplify's average realized sales price per barrel of oil was $60.01, significantly lower than the $76.51 recorded in the same quarter of 2024. The company also faced increased lease operating expenses, which rose to $38.6 million from $36.3 million, largely due to higher electricity costs. Additionally, Amplify recognized an impairment expense of $8.4 million related to its non-operated Eagle Ford assets, reflecting a strategic decision to divest these assets.

Strategically, Amplify Energy has been active in its asset management, announcing the sale of its non-operated Eagle Ford assets for $23 million, which closed on July 1, 2025. This divestiture is part of a broader strategy to optimize its portfolio and focus on core operations. The company also engaged a third-party advisor to explore the potential divestiture of its assets in East Texas and Oklahoma, indicating a shift in its operational focus.

The company’s financial position showed a current ratio of 0.90 as of June 30, 2025, below the required minimum of 1.00, but it received a waiver from lenders regarding this covenant. Amplify's long-term debt stood at $130 million, with a borrowing base of $145 million under its revolving credit facility. The company reported net cash provided by operating activities of $49.2 million for the first half of 2025, a significant increase from $23.1 million in the same period of 2024, reflecting improved cash flow management despite lower revenues.

Looking ahead, Amplify Energy anticipates continued volatility in oil and natural gas prices due to various market factors, including geopolitical tensions and OPEC+ production decisions. The company plans to fund its capital expenditures primarily through internally generated cash flow while maintaining the flexibility to utilize its revolving credit facility as needed. The management remains focused on optimizing operations and enhancing shareholder value through strategic asset management and cost control measures.