Earnings

Amplify Energy Turns to Third-Quarter Net Loss on Derivative Mark

The Tip Desk · November 12, 2026 · 3 min read

The oil producer posted an $18.9 million net loss in the third quarter of 2026 as production averaged 7.4 thousand barrels of oil a day.

Amplify Energy Corp. (AMPY) reported third-quarter 2026 production averaging 7.4 thousand barrels of oil a day and a net loss of $18.9 million, reversing net income of $17.3 million in the second quarter, as a $24.6 million non-cash unrealized loss on commodity derivatives dominated the GAAP result.

The independent oil company, focused on the Beta field on the Pacific Outer Continental Shelf and Bairoil in the Rockies, said the loss was primarily attributable to that derivative mark. Excluding the unrealized loss and other one-time items, it generated adjusted net income of $0.7 million, up from an adjusted net loss of $1.7 million. Adjusted EBITDA was $10.8 million, and free cash flow was $2.0 million.

Average daily production rose to 7.4 thousand barrels of oil a day, entirely crude, from 6.8 thousand in the second quarter, an approximately 9% sequential increase after a 6% sequential rise in the prior quarter. Beta production increased approximately 11% and Bairoil approximately 8%. Total third-quarter production was up 15% from the first quarter of 2026.

The C29 well, completed in June, averaged about 380 gross barrels of oil a day in the third quarter with an expected payout of 10 months and an IRR in excess of 150%. The C16 well, completed in July, averaged about 360 gross barrels of oil a day on a similar payout and IRR. Amplify said it expects to continue development drilling at Beta in 2027.

Total oil revenues excluding hedges were $51.4 million. The average sales price exclusive of realized derivatives fell to $75.19 a barrel from $85.41. Average Brent and WTI prices also declined. Realized commodity derivative losses were about $9.7 million.

Bairoil lease operating expenses fell approximately 30% to $7.8 million from $10.8 million, the lowest quarterly level since Amplify acquired the asset in 2014, after an amended CO2 purchase agreement that increases 45Q rebates on volumes above the minimum commitment. Company-wide lease operating expenses were about $22.7 million. Cash G&A was about $4.6 million.

Chief Executive Officer Dan Furbee said that because of increased CO2 deliveries above the contract minimum, estimated annualized savings at Bairoil are forecast to be greater than $20 million compared with the prior year. He said the company is evaluating opportunities to use Bairoil’s CO2 infrastructure and available pore space for carbon storage.

Effective November 1, 2026, Amplify secured Special Case Royalty Relief at Beta, reducing the royalty rate on all Beta production to approximately 12.4% from 24.8% before End of Life and SCRR relief. The suspension price threshold rose to about $92 a barrel of oil equivalent, based on a trailing 12-month average, from about $80 under the prior End of Life royalty relief. The company said the structure allows it to retain a greater share of value from future development.

Capital investment was $8.0 million, down from $20.7 million, with $7.3 million at Beta and $0.7 million at Bairoil. Liquidity as of September 30 was $25.0 million, including $10.0 million of cash and about $15.0 million of available borrowing capacity, with no outstanding debt on the revolving credit facility.

Through November 6, Amplify repurchased about 1.6 million shares, or about 4.0% of shares outstanding, for about $6.9 million at a weighted-average $4.35 a share under a $15.0 million authorization through year-end.

Full-year 2026 oil production guidance was narrowed to 7.0–7.3 thousand barrels a day from 7.0–7.5 thousand. The high end of lease operating expense guidance was cut to $90.0 million from $95.0 million. Unhedged oil differential guidance moved to $(8.00)–$(10.00) a barrel. Adjusted EBITDA guidance remained $30.0 million to $40.0 million. The company said it expects to exit 2026 with a net cash position.

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