Amplify Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $18.9 million for the third quarter of 2026, compared to net income of $17.3 million in the second quarter of 2026, primarily driven by a $24.6 million non-cash unrealized loss on commodity derivatives.
• Generated Adjusted EBITDA of $10.8 million, an increase of $2.2 million compared to the prior quarter ($8.6 million).
• Reported Adjusted Net Income of $0.7 million, an increase of $2.5 million compared to the prior quarter ($1.7 million loss).
• Generated net cash provided by operating activities of $3.1 million, up from $2.8 million in the second quarter.
• Reported Free Cash Flow of $2.0 million, compared to a negative $12.9 million in the second quarter.
• Total revenues excluding hedges were $51.4 million, down from $52.7 million in the second quarter.
• Total capital investment was $8.0 million, down from $20.7 million in the second quarter.
• Lease operating expenses totaled $22.7 million; Bairoil lease operating expenses declined to $7.8 million from $10.8 million in the prior quarter.
• Cash G&A expenses were $4.6 million, down from $5.1 million in the prior quarter.
• Depreciation, depletion, and amortization expense was $5.6 million; net interest expense was $0.9 million.
• Recorded a $3.5 million deferred income tax benefit.
• As of September 30, 2026, the company had no outstanding debt under its revolving credit facility.
• Liquidity stood at $25.0 million, consisting of $10.0 million in cash on hand and approximately $15.0 million in available borrowing capacity.

Guidance and Future Outlook:

• Full-year 2026 Net Average Daily Production guidance tightened to 7.0–7.3 MBbls/d (previously 7.0–7.5 MBbls/d).
• Full-year 2026 Lease Operating Expenses guidance reduced to $80.0–$90.0 million (previously $80.0–$95.0 million).
• Full-year 2026 Adjusted EBITDA guidance remains unchanged at $30.0–$40.0 million.
• Full-year 2026 Capital Investment guidance tightened to $50.0–$55.0 million (previously $45.0–$55.0 million).
• Full-year 2026 Cash G&A guidance remains $20.0–$22.0 million.
• Full-year 2026 Share Repurchase authorization remains $6.0–$15.0 million.
• Guidance assumes flat commodity prices for crude oil of $90/Bbl (WTI).
• The company expects to exit 2026 with a strengthened balance sheet and a net cash position.
• Average hedge prices are higher in 2027, which, combined with operating improvements, are expected to support stronger cash flow generation.

Business Segments and Product Lines:

• Average total production was 7.4 MBopd (100% oil), an increase of approximately 9% from the prior quarter and 15% from the first quarter of 2026.
• Beta production increased approximately 11% sequentially, driven by the C29 well (averaging 380 gross Bopd) and C16 well (averaging 360 gross Bopd), both with expected payouts of 10 months and IRRs exceeding 150%.
• Bairoil production increased approximately 8% sequentially.
• Bairoil averaged 58 MMcfd of CO2 injections, approximately 80% higher than the minimum contracted amount.
• Effective November 1, 2026, the company secured Special Case Royalty Relief (SCRR) at Beta, reducing the royalty rate on all Beta production to approximately 12.4% (down from 24.8% prior to relief).
• Under SCRR, the commodity price threshold for suspension increased to approximately $92 per BOE.
• Capital investment at Beta was $7.3 million, focused on development drilling and waterflood enhancement projects.
• Capital investment at Bairoil was $0.7 million.

Market and Competitive Landscape:

• Refining capacity in California has declined, reducing available outlets for locally produced crude oil and placing pressure on realized pricing.
• The company is pursuing multiple paths to expand markets, including offshore buoys, new pipeline connections, and trucking options.
• Fourth-quarter differentials have improved, leading to an updated guidance reflecting a stronger realized pricing outlook.
• Bairoil's increased CO2 deliveries highlight the value of available pore space for carbon storage.

Risks and Challenges:

• Volatility in commodity prices and the impact of derivative instruments on net income.
• Refining capacity constraints in California affecting realized pricing.
• The need to maintain royalty relief at Beta.
• Risks related to the redetermination of the borrowing base under the revolving credit facility.
• General political and economic conditions, including global conflicts and trade wars.
• Potential changes in local, state, and federal regulations, including those related to climate change.

Management Commentary and Tone:

• CEO Dan Furbee stated results demonstrate tangible progress in unlocking asset value with growing production and significantly lower costs at Bairoil.
• Management highlighted that the amended CO2 purchase agreement at Bairoil is expected to generate annualized savings of more than $20 million compared to the prior year.
• Management expressed confidence that buying back shares at current levels is accretive to shareholders and intends to continue the program.
• Management believes opportunities for value creation exist through share repurchases, development drilling at Beta with SCRR, and monetizing pore space at Bairoil.

Other Key Points:

• Through November 4, 2026, the company repurchased approximately 1.6 million shares (4.0% of shares outstanding) for approximately $6.9 million at a weighted-average price of $4.35 per share.
• The Board authorized the repurchase of up to $15.0 million of common stock through December 31, 2026.
• The company entered into additional costless collars covering portions of 2027 production with WTI floor/ceiling prices of $75.00/$87.50 and Brent floor/ceiling prices of $78.59/$93.99.
• The company entered into Brent crude oil swaps for full-year 2028 at a weighted average price of $75.50/Bbl.
• As of November 6, 2026, the company has hedged approximately 60-70% of expected PDP oil production for the remainder of 2026 and full-year 2027.
• The company is in the process of completing its semi-annual borrowing base redetermination.
• The Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, is expected to be filed on November 9, 2026.