Amplify Energy Goes Debt-Free, Bets Big on Core Oil & Gas Assets

HOUSTON, TX – December 29, 2025 – Amplify Energy Corp. has finalized a significant strategic pivot, closing the sale of its Oklahoma interests for $92.5 million and using the proceeds to create a debt-free balance sheet. The move, combined with a recent divestiture in East Texas, marks the culmination of a plan to simplify its portfolio, slash costs, and concentrate firepower on what it deems its most promising oil-producing assets.

In an announcement today, the Houston-based independent oil company confirmed the transaction's closing. The sale not only streamlines its operational map but also provides a substantial financial reset. Proceeds have been immediately applied to eliminate all outstanding debt under its revolving credit facility, a major milestone for the firm. An amended credit facility is expected to be finalized by year-end, providing fresh liquidity for its newly focused strategy.

“We are excited to have completed the closings of the East Texas and Oklahoma transactions in coordination with the Company’s previously announced strategic plan to simplify its portfolio,” said Dan Furbee, Amplify’s Chief Executive Officer, in a statement. “With an improved balance sheet, the Company intends to focus its resources on its highest upside assets.”

A New Financial Foundation

The most immediate impact of the divestitures is a dramatic overhaul of Amplify’s financial health. By paying off its revolving credit facility, the company has shed a significant liability, freeing up cash flow and enhancing its operational flexibility. The firm is now finalizing an amended senior secured credit facility with a maturity date extending to December 2028.

This new facility is set to launch with an initial borrowing base of $25 million and elected commitments of $15 million. With no balance currently drawn and cash on hand, Amplify enters 2026 with a clean slate, poised to fund its development plans without the burden of near-term debt maturities. This financial maneuverability is critical as the company doubles down on its core properties.

Beyond debt reduction, the company anticipates a “material” drop in General & Administrative (G&A) costs. While a precise target has not been disclosed, cash G&A expenses had already shown a 7% year-over-year decrease in the first quarter of 2025. Analyst models suggest annual G&A could fall from a guided $26 million to as low as $18 million, a substantial saving that would flow directly to the bottom line and further bolster the company’s leaner operational profile.

The High-Upside Bet: Beta and Bairoil

With its portfolio simplified, Amplify is channeling its resources into two key regions: the Beta oilfield in the Pacific Offshore Continental Shelf and the Bairoil field in the Rockies. These assets are now the focal point of the company's growth strategy, with Furbee stating his belief that Amplify is “well positioned to create significant upside value at both Beta and Bairoil.”

The Beta field, located offshore Southern California, has been a standout performer. A development drilling program initiated in 2024—the first in over a decade—has yielded impressive results. Production from the field has surged by approximately 40% since the start of 2024, driven by a series of highly successful new wells. For example, the C54 well achieved an initial 20-day production rate of around 800 barrels of oil per day (Bopd), while the C08 well stabilized at a 30-day rate of 550 Bopd. These D-Sand wells are projected to deliver internal rates of return exceeding 90% at a conservative $60 per barrel oil price.

Looking ahead, Beta holds significant proven undeveloped reserves, with 25 SEC-PUD locations identified at the end of 2024, representing a potential value of $144 million. With newfound liquidity, Amplify may accelerate development in 2026 after deferring some projects in 2025 amid lower commodity prices.

At Bairoil in Wyoming, the strategy is centered on efficiency and cost reduction. The company is aggressively targeting its lease operating expenses (LOE), particularly power usage. Recent projects, including a new CO2 contract, are already on track to deliver approximately $10 million in annual LOE savings. The company’s goal is to drive down the combined per-barrel operating costs for Beta and Bairoil from nearly $42 in 2024 to around $33 in 2026, a move that would significantly enhance margins.

Market Reaction and Industry Context

Wall Street has responded with cautious optimism. While Amplify’s stock (NYSE: AMPY) saw minor dips following the divestiture announcements, the broader analyst consensus remains bullish on the long-term strategy. The median 12-month price target among analysts sits at $9.13, representing a potential upside of over 95% from its current trading price of around $4.64. Multiple analysts maintain “Buy” ratings, citing the strengthened balance sheet and the clear potential of the focused asset base.

Amplify's strategic reshuffle is not happening in a vacuum. It mirrors a wider trend across the independent E&P sector, where companies are actively optimizing their portfolios. In an era of volatile energy prices and an accelerating energy transition, operators are shedding non-core or higher-cost assets to de-risk their balance sheets and concentrate capital on their most productive and profitable fields. This “great reshuffle” allows companies to maximize shareholder returns from their best assets while improving their resilience against market downturns. By executing this textbook strategic pivot, Amplify Energy has repositioned itself as a leaner, more focused, and financially robust player, betting its future on the concentrated power of its core assets.