Amplify Energy (AMPY) outlined a strategic shift at the EnerCom Denver energy conference, highlighting a leaner portfolio and operational improvements following the sale of non-core assets. The company sold East Texas, Oklahoma, and Eagle Ford positions for approximately $250 million, using proceeds to eliminate all outstanding debt.
The remaining assets—Beta in offshore Southern California and Bairoil in Wyoming’s Greater Green River Basin—now underpin the company’s valuation. Proved developed reserves at Beta, valued at a PV-10 of $414 million under a $75 WTI oil price, form the core of Amplify’s asset base. Total 1P reserve value across both assets stands at roughly $520 million, with an implied equity value of about $510 million. Management estimates this valuation supports a share price above $12, representing a more than 200% premium to recent trading levels near $4.82.
Operational enhancements include a 50% reduction in general and administrative headcount and a 15% cost reduction across Beta and Bairoil. Beta’s production has increased by approximately 2,800 barrels per day since mid-2024, approaching a target of 4,500 barrels per day. The company has drilled nine wells at Beta since mid-2024, with average D sand well costs of $6.5 million and initial production of about 500 barrels per day per well.
At Bairoil, current net production is just under 3,000 barrels per day, supported by tertiary CO2 flooding since the 1980s. The asset’s CO2 economics have improved significantly, with supplier rebates generating $5 million to $6 million annually, reversing a prior $5 million annual cost. CO2 injection rates have expanded from 10,000 Mcf per day to 32,000 Mcf per day, with roughly 200 million cubic feet recycled daily. Bairoil also benefits from 45Q tax credits valued at $85 per metric ton of CO2.
CEO Dan Furbee emphasized the company’s transformation, noting that the portfolio now aligns with a higher valuation framework. "We have a proved developed value, PV-10, of just over $400 million," Furbee stated. "Our implied equity value of $510 million would imply over a $12 share price, more than a 200% premium to our recent trading value." The company’s stock has delivered a 20% return over the past year, trading within a 52-week range of $3.65 to $6.79.
Analysts project a 41% revenue decline in fiscal 2026 and forecast a net loss of $0.54 per share for the year, reflecting ongoing operational challenges despite the portfolio optimization.
