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HOUSTON - Amplify Energy Corp. (NYSE:AMPY), currently trading at $3.33 with a market capitalization of $134.32 million, announced Tuesday it is exploring the sale of its East Texas and Oklahoma assets as part of a strategic initiative to focus on its oil-weighted operations and reduce debt. According to InvestingPro data, the company operates with a significant debt burden of $130.5 million, making this strategic move particularly crucial.
The company has engaged TenOaks Energy Advisors to gauge market interest for the potential divestiture, which would allow Amplify to concentrate resources on its Beta and Bairoil operations. With a current ratio of 0.76, InvestingPro analysis indicates the company’s short-term obligations exceed its liquid assets, highlighting the importance of this strategic restructuring.
Alongside this strategic shift, Amplify announced that Martyn Willsher has stepped down as President and Chief Executive Officer. Dan Furbee, previously Senior Vice President and COO, has been promoted to CEO and will join the company’s board of directors. Jim Frew will serve as President while retaining his CFO role.
"Amplify is pursuing multiple paths to enhance shareholder value. We are taking steps to not only simplify the portfolio, but also the organization," said Chris Hamm, Chairman of the Board, in the press release.
The company is currently drilling the C-08 well at its Beta platform with production expected to begin in August. At Bairoil, Amplify is pursuing cost-saving opportunities and optimization projects.
According to the announcement, the strategic initiatives aim to make Amplify more oil-weighted, reduce debt, lower operating costs, and streamline the organization. The company believes that focusing on its low-decline, oil-weighted assets will generate better returns for investors. Trading at a price-to-book ratio of just 0.33 and generating an EBITDA of $74.45 million in the last twelve months, detailed financial analysis and additional insights are available in the comprehensive Pro Research Report on InvestingPro, along with 6 more key ProTips for informed investment decisions.
Furbee, the new CEO, stated he was "honored to take on the role" and expressed confidence that simplifying the portfolio would "create a tremendous amount of value for all stakeholders."
Amplify Energy is an independent oil and natural gas company with operations in Oklahoma, the Rockies, federal waters offshore Southern California, and East Texas/North Louisiana.
In other recent news, Amplify Energy Corp reported a significant earnings per share (EPS) of $3.8 for the first quarter of 2025, far surpassing the forecasted $0.21. Despite a net loss of $5.9 million, this earnings performance reflects strong operational efficiency and strategic execution. Revenue for the quarter was $72 million, slightly below the anticipated $72.55 million. Amplify Energy also announced the sale of its non-operated Eagle Ford assets to Murphy Exploration & Production Company for $23 million. This transaction, completed in July 2025, is part of the company’s strategy to reduce debt and improve liquidity.
Following the asset sale, Amplify Energy is considering reinstating previously deferred high-return development wells at its Beta field. Benchmark has reiterated its Buy rating for Amplify Energy, citing the strategic asset sales and debt reduction plans as positive developments. The firm expects updated production and capital expenditure guidance from Amplify Energy in August, reflecting these strategic changes. Amplify Energy plans to provide updated full-year 2025 guidance with its second-quarter operating and financial results.
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