Amplify Energy Goes Debt-Free, Bets Big on Offshore Drilling and Carbon Capture

HOUSTON, TX – March 09, 2026 – By Kevin Lee

Amplify Energy Corp. has completed a dramatic strategic overhaul, emerging in 2026 as a leaner, debt-free oil company with a tightly focused mission. After a year dedicated to simplifying its portfolio through a series of major asset sales, the Houston-based firm has paid off all its outstanding debt, built a substantial cash reserve, and is now channeling its resources into two core assets: the high-potential Beta oil field offshore California and the Bairoil field in Wyoming, which is being positioned for a future in carbon capture.

The company announced Monday that it had successfully executed its 2025 strategic plan, which involved exiting operations in East Texas, Louisiana, and Oklahoma. The move marks a significant pivot away from a diversified-but-indebted model towards a more disciplined approach centered on maximizing value from its most promising properties.

“We are pleased to report that our strategic plan is delivering the results we set out to achieve,” said Dan Furbee, Amplify’s Chief Executive Officer, in a statement. “These transactions have enabled us to eliminate debt and build a strong cash position, giving us greater financial flexibility and a sharper focus on the opportunities that drive meaningful growth.”

A Financial Reset Through Strategic Sales

Throughout 2025, Amplify executed six separate divestiture transactions that generated approximately $250 million in total consideration. The sales included its holdings in the Mississippian Lime play in Oklahoma and assets within the Haynesville and Cotton Valley trends in East Texas. This aggressive divestment strategy was a direct execution of the plan laid out in the third quarter of 2025 to simplify the company’s operational footprint.

The primary use of the proceeds was the complete repayment of its credit facility debt. The company’s balance sheet, once burdened by debt, now reflects a much stronger financial position. As of December 31, 2025, Amplify reported having no outstanding debt and approximately $61 million in cash and cash equivalents. The company also successfully amended and extended its revolving credit facility through 2028, securing its liquidity for the long term, albeit with a smaller borrowing base of $25 million reflecting its more compact asset portfolio.

This financial house-cleaning came at the cost of production volume and a workforce reduction of 36 employees. The company's average daily production fell from 19.7 MBoepd in the third quarter of 2025 to 17.1 MBoepd in the fourth quarter, a direct result of the asset sales. However, management is betting that this leaner profile will lead to greater efficiency and higher returns.

Doubling Down on Beta's Offshore Potential

With its balance sheet fortified, Amplify is directing the lion's share of its focus and capital towards its Beta oil field, located in the Pacific Outer Continental Shelf off the coast of Southern California. The company's 2026 guidance allocates over 95% of its $45 to $65 million capital budget to the Beta asset, signaling immense confidence in its potential.

This confidence is backed by recent results. A development program in 2024 and 2025 saw six wells drilled, with several exceeding pre-drill expectations. The company plans to accelerate this program in 2026, drilling and completing five to eight new wells. The primary target is the Joulters fault block, a historically underdeveloped portion of the field that has shown highly consistent and promising results.

Amplify has introduced a new type curve for wells in this block, projecting an Estimated Ultimate Recovery (EUR) of approximately 670,000 barrels of oil per well. At a West Texas Intermediate (WTI) oil price of $65 per barrel, the company estimates these wells can generate an internal rate of return (IRR) exceeding 100%, a figure that stands out in the industry. The company has identified 29 drilling locations in the D-Sand interval alone, suggesting a multi-year development runway.

“We are excited about the continued success we are having with our drilling program at Beta, which has increased our confidence regarding the future inventory of the field for this prolific asset,” Furbee stated. While the prospects are bright, offshore operations carry inherent geological and regulatory risks, a factor that investors will continue to monitor as Amplify ramps up its development campaign.

Bairoil's Dual Role: Cost Savings and Carbon Storage

While Beta represents the company's primary growth engine, the Bairoil field in the Rockies is being transformed into a stable, cash-generating asset with a forward-looking environmental angle. In 2025, Amplify implemented significant cost-saving initiatives at Bairoil, including a new CO2 purchase contract and a compression optimization project. These efforts are expected to lower annual lease operating expenses by approximately $10 million.

Beyond efficiency gains, Amplify is actively exploring Bairoil's potential for Carbon Capture, Utilization & Storage (CCUS). The field's geology and strategic location along a major CO2 transportation corridor make it a prime candidate for sequestering carbon. The company has already achieved a key milestone by receiving certification under the CSA ANSI/ISO EOR Operations Management Plan, a crucial step in qualifying for lucrative Section 45Q federal tax credits for carbon sequestration.

Amplify has engaged Marathon Capital to formally evaluate Bairoil's potential as a large-scale carbon storage site. This initiative positions Amplify to potentially generate new revenue streams and participate in the energy transition, turning a mature oil field into a valuable asset in a low-carbon economy.

With its strategic pivot complete, Amplify Energy is charting a new course. The company's 2026 guidance projects an Adjusted EBITDA between $20 million and $45 million, with an average daily oil production of 6.7 to 7.9 MBbls/d from its focused portfolio. By shedding non-core assets and debt, the company has created a clear, dual-pronged strategy: exploit the high-return drilling opportunities at Beta while cultivating the long-term, innovative potential of Bairoil.