Amplify Energy 2025 Q3 Earnings Sharp Net Loss of $20.97M Amid Strategic Asset Sales

Amplify Energy (AMPY) reported a significant swing to a loss in Q3 2025, with GAAP EPS of -$0.52 versus $0.54 in the prior-year period. The results fell short of expectations, driven by a 5.7% revenue decline and strategic divestitures to streamline operations.

Revenue

Total revenue for Q3 2025 declined to $64.24 million, reflecting a 5.7% year-over-year drop. Oil and natural gas sales accounted for the entirety of revenue at $64.24 million, supplemented by $2.15 million in other revenues. This marks a notable shift from the $68.14 million recorded in Q3 2024, with the company’s focus narrowing to core operations amid ongoing asset rationalizations.

Earnings/Net Income

Amplify Energy posted a net loss of $20.97 million in Q3 2025, a 192.6% deterioration from net income of $22.65 million in Q3 2024. The loss per share of $0.52 underscores a dramatic reversal in profitability, driven by reduced revenue and elevated operational costs. The earnings reflect a significant downturn, with a substantial net loss and a sharp decline in EPS.

Price Action

The stock price of Amplify Energy has edged up 1.11% during the latest trading day, has climbed 3.39% during the most recent full trading week, and has tumbled 10.39% month-to-date.

Post-Earnings Price Action Review

The “buy on revenue beat and hold for 30 days” strategy has proven ineffective for Amplify Energy historically, as the company has not demonstrated consistent quarterly revenue beats over the past decade. Amplify’s financial performance has been marked by revenue misses, significant volatility, and limited positive earnings surprises. The available data shows revenue misses or no clear beats, making the strategy unprofitable due to a lack of actionable entry points. The company’s strategic focus on long-term restructuring and balance sheet improvements may offer more sustainable value than short-term trading approaches.

CEO Commentary

Dan Furbee, CEO of Amplify Energy, emphasized the company’s strategic plan to simplify its portfolio, strengthen its balance sheet, and focus on high-upside assets. He highlighted the divestiture of Oklahoma and East Texas assets ($220M total consideration) as a step toward reducing debt and G&A costs while accelerating Beta development. Furbee noted “excitement” about Beta’s drilling success, including the C08 well’s IP30 rate of 550 Bopd (exceeding type curves), and Bairoil’s $10M/year cost savings from a new CO2 contract and plant upgrades. The tone was optimistic, with Furbee stating the company is “already seeing the benefits” of its strategic focus on high-potential assets and CCUS initiatives.

Guidance

Amplify expects to use asset sale proceeds to pay down debt and accelerate Beta development in 2026. Fourth-quarter 2025 capital expenditures are projected at $8.0–$12.0M, with a focus on Beta’s C61 well, pipeline upgrades, and facility expansions. The company anticipates further cost reductions at Bairoil through lower CO2 costs and energy efficiency, generating $10M/year in savings. It also expects to maintain hedges covering 2026–2027 production at weighted average prices of $62.29 WTI and $3.80–$3.96 Henry Hub. No material tax impacts from asset sales are expected.

Additional News

Amplify Energy has executed a $220M divestiture of its Oklahoma and East Texas assets, marking a pivotal step in its strategic portfolio simplification. The transactions, expected to close by Q4 2025, are designed to reduce debt and refocus operations on high-potential assets in Beta and Bairoil. CEO Dan Furbee highlighted the divestitures as part of a broader plan to strengthen the balance sheet and accelerate growth. Additionally, the company announced $10M/year in cost savings from Bairoil’s new CO2 contract and plant upgrades, underscoring its commitment to operational efficiency. The sales are advised by TenOaks Energy Advisors and Kirkland and Ellis, reflecting a structured approach to unlocking shareholder value.