AMPY · Amplify Energy Corp.

Amplify Energy’s Q1 2026 results reflect a sharp GAAP net loss of $38.1 million—driven almost entirely by a $43.4 million non-cash unrealized loss on commodity derivatives—contrasting sharply with $64.4 million net income in Q4 2025, which included a gain on the East Texas and Oklahoma divestitures. Excluding this derivative impact and other one-time items, Adjusted Net Income was $5.3 million and Adjusted EBITDA was $3.8 million, both aligned with internal expectations and demonstrating underlying operational stability. Production averaged 6.4 Mbopd (100% oil), down significantly from 17.1 MBoe/d in Q4 2025 due to the completed divestitures, but Beta production rose 1% sequentially while Bairoil declined 6% due to compressor-related downtime. A major catalyst disclosed is the Beta royalty relief effective May 1, 2026, reducing the royalty rate from 25.0% to ~12.5%, adding over 600 Bopd of net production and more than $1.0 million per month in incremental revenue at current pricing—directly offsetting timing delays in the drilling program. The C04 well’s strong 500 Bopd IP30 reinforces the Joulters fault block’s repeatable quality, while the C32 abandonment and C55 delay reflect disciplined capital allocation rather than technical failure. Liquidity remains robust: $41.5 million cash plus $15.0 million available capacity under the $15.0 million elected commitment on a $25.0 million borrowing base. Management reaffirmed full-year guidance and signaled confidence in achieving the high end of the Adjusted EBITDA range, citing elevated crude prices and the tangible benefit of royalty relief—underscoring a strategic pivot toward value accretion at Beta and optionality at Bairoil via CCUS evaluation.