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Jun 30
Amplify Energy Q2 2025 Earnings Report
Amplify Energy's Q2 2025 earnings report was released, detailing strategic initiatives, operational performance, and financial results, alongside updated full-year 2025 guidance.
Key Takeaways
Amplify Energy generated strong second-quarter operating and financial results despite a lower commodity price environment, driven by new wells coming online at Beta and East Texas. The company reported a net income of $6.4 million and an Adjusted EBITDA of $19.0 million, comparable to the prior quarter. Strategic initiatives are underway to simplify the portfolio, reduce debt, and lower operating costs, with a focus on oil-weighted assets.
Amplify Energy reported a net income of $6.4 million in Q2 2025, a significant improvement from a net loss of $5.9 million in the prior quarter, primarily due to a gain on commodity derivatives.
Adjusted EBITDA for Q2 2025 was $19.0 million, consistent with the previous quarter despite lower commodity prices, indicating stable operational performance.
Average daily production increased to approximately 19.1 Mboepd in Q2 2025, up by 1.2 Mboepd from the prior quarter, with all five assets showing increased production.
The company's product mix shifted to be more oil-weighted, with crude oil accounting for 48% of total production in Q2 2025, up from 41% in Q2 2024, aligning with its strategic objectives.
Amplify Energy
Amplify Energy
Forward Guidance
Amplify Energy has updated its full-year 2025 guidance, reflecting the sale of Eagle Ford assets and increased development at Beta. The company anticipates investing approximately 95% of its 2025 capital by the end of Q3 2025, with a significant drop in capital investments in the second half of the year.
Positive Outlook
- Increased Beta development with at least two wells planned for drilling and completion in the second half of 2025, expected to generate high IRRs.
- Facility and equipment upgrades at Beta are underway to support potential acceleration of the development program, including pipeline, pump, drilling rig, and power upgrades.
- New non-operated wells in East Texas (Haynesville and Cotton Valley) are exceeding forecasts and are expected to pay out in less than 18 months with IRRs greater than 45%.
- Investments in facility projects at Bairoil's CO2 gas plant are projected to significantly reduce power usage and costs, offsetting increases from higher electric utility rates.
- Certification under the EOR Operations Management Plan at Bairoil allows portions of CO2 utilized to qualify for Section 45Q tax credits, potentially creating additional value.
Challenges Ahead
- Free cash flow was negative $10.1 million in Q2 2025 due to higher capital investments in the first half of the year.
- The borrowing base was reduced to $135.0 million following the Eagle Ford divestiture.
- Capital investments in the second half of 2025 are forecasted to drop significantly, which could imply a slower pace of new project initiation.
- The company's guidance is based on specific commodity price assumptions ($65.00/Bbl WTI and $3.50/MMBtu Henry Hub), making it susceptible to price volatility.
- The forward-looking information is subject to cautionary statements and limitations, indicating inherent uncertainties in projections.