Amplify Energy Goes Debt-Free, Sharpens Focus on Core Oil Assets

HOUSTON, TX – December 29, 2025 – Amplify Energy Corp. has executed a dramatic strategic pivot, completing a series of divestitures that have wiped out its outstanding debt and repositioned the company to concentrate its resources on its most promising assets. By closing the sale of its Oklahoma and East Texas properties for combined proceeds of approximately $214.5 million, the independent oil producer has transformed its balance sheet and signaled a new, leaner operational chapter.

The moves conclude a year of significant restructuring for Amplify, which now plans to channel its efforts and capital into its high-potential Beta field in California and Bairoil properties in the Rockies. This strategic simplification, coupled with the elimination of its debt burden, has been met with a positive reception from market analysts who see a clearer path to value creation for the newly focused company.

A Financial Clean Slate

Amplify Energy's financial overhaul was accomplished through two key transactions. The final piece fell into place with the closing of the sale of its Oklahoma interests for a contract price of $92.5 million. This followed the December 23 divestiture of its East Texas assets, which brought in approximately $122.0 million in cash.

Critically, the company has confirmed that the combined proceeds were used to eliminate all outstanding debt under its revolving credit facility. As of September 30, 2025, Amplify had $123.0 million outstanding on this facility, a figure that analysts had previously flagged as a significant financial burden. The elimination of this debt provides the company with substantially improved liquidity and financial flexibility. An amended credit facility, reflecting the company's new pro-forma structure, is expected to close before the end of the year, solidifying its renewed financial footing.

This deleveraging marks a pivotal moment for the company, freeing it from major interest payments and restrictive debt covenants that can hamper growth. The strengthened balance sheet not only de-risks the company's financial profile but also empowers management to invest more aggressively in its core operational priorities.

Betting Big on Beta and Bairoil

The strategic rationale behind the divestitures is a deliberate concentration of resources on what Amplify identifies as its "highest upside assets": the Beta field off the coast of Southern California and the Bairoil field in the Rockies. Instead of spreading capital across a disparate portfolio, the company is now making a calculated bet on these two core properties.

The Beta field has already shown significant promise. In early 2024, Amplify launched the first major development program at the site in over a decade, with impressive results. Production from the field has grown by approximately 40% since the start of 2024, driven by a series of new wells that are reportedly outperforming their type curves. For example, the C08 well, brought online in September 2025, achieved a strong 30-day initial production rate of around 550 barrels of oil per day. With wells demonstrating lower breakeven prices than those in major U.S. shale basins, Amplify plans to leverage its newfound liquidity to accelerate development at Beta in 2026.

Meanwhile, the Bairoil asset in Wyoming is becoming a case study in operational efficiency and future-facing energy strategy. The company has successfully negotiated a new CO2 purchase contract and completed a gas plant facility project, which together are projected to generate approximately $10 million in annualized savings on lease operating expenses. Beyond immediate cost reductions, these initiatives highlight the asset's potential for Carbon Capture, Utilization, and Storage (CCUS). This positions Bairoil not just as a production asset but as a potential player in the growing carbon management industry, creating an additional, long-term value proposition.

Streamlining for a Leaner Future

Parallel to its portfolio simplification, Amplify Energy is focused on reducing its corporate overhead. The company anticipates a material reduction in General & Administrative (G&A) costs following the exit from its Oklahoma and East Texas operations. This move is a logical consequence of managing a smaller, more focused asset base.

This cost-cutting initiative is not new but rather an acceleration of an existing trend. Financial reports from 2025 showed the company was already making progress, with cash G&A expenses declining 2% in the third quarter after a 7% drop in the second quarter. By shedding non-core assets, Amplify is positioned to achieve greater capital efficiency and create a more agile corporate structure. This strategy reflects a broader trend among independent producers, who are increasingly streamlining operations to build resilience against market volatility and optimize shareholder returns.

Wall Street's Positive Reception

The market and financial analysts have responded favorably to Amplify's decisive strategic actions. The company currently holds a "Strong Buy" consensus rating from covering brokerage firms, with an average price target of $9.13 suggesting a potential upside of over 90% from its recent trading levels. This optimism is largely rooted in the company's successful deleveraging.

For years, Amplify's significant debt was a primary concern for investors. By addressing this issue head-on, the company has removed a major overhang on its valuation and unlocked a clearer investment thesis. Analysts now point to a leaner, financially robust company with a focused strategy aimed at maximizing value from its most productive assets. While the company had previously faced challenges, including periods of negative free cash flow, this comprehensive restructuring is viewed as a credible and potent remedy. The strategic transformation appears to have successfully repositioned Amplify Energy for a new phase of focused growth, driven by operational execution at its core Beta and Bairoil fields.