AMPY · Amplify Energy Corp.

Despite gross strength, operating income deteriorated to a -$49.3 million loss from -$4.0 million, reflecting an operating margin of -131.6% as key drivers—commodity prices, production volumes, and operating costs—turned unfavorable. Net income followed to -$38.1 million or -$0.93 diluted EPS, versus -$5.9 million or -$0.15 prior year, with the deeper shortfall tied to the scaled-back production post-divestments. Taxes other than income also decreased, primarily from lower production taxes and reduced NOx credits purchased, providing some offset.

Cash generation from operations declined to $4.5 million from $25.5 million, as lower volumes pressured inflows despite favorable working capital changes. Working capital requirements generally rise with commodity prices and fall with declines, a dynamic management expects to continue influencing future needs. The divestitures positioned the company with a leaner, higher-margin profile at Beta and Bairoil, mitigating some revenue pressure through cost reductions while navigating commodity volatility that impacts cash flows and profitability.

This quarter underscores the trade-offs of portfolio streamlining: sharply lower top-line figures but resilient gross economics and targeted expense cuts, setting a foundation for liquidity preservation amid fluctuating energy markets. Investors should monitor commodity prices and volumes as primary levers for cash flow recovery.