Amplify Energy sells Eagle Ford assets to Murphy for $23 million

Published 01/07/2025, 22:32
Amplify Energy sells Eagle Ford assets to Murphy for $23 million

HOUSTON - Amplify Energy Corp. (NYSE:AMPY) announced Tuesday it has sold all of its non-operated working interest in its Eagle Ford assets to Murphy Exploration & Production Company - USA for $23 million. The transaction closed on July 1, 2025, with an effective date of June 15, 2025.

The company plans to use the net proceeds to reduce its $130.5 million debt burden and improve its liquidity position, which InvestingPro analysis shows is currently strained with a current ratio of 0.76. With the strengthened balance sheet, Amplify is considering reinstating previously deferred high-return development wells at its Beta field in 2025.

"The sale of our non-operated Eagle Ford assets is an important step forward in the transformation of Amplify Energy to a more streamlined and focused enterprise," said Martyn Willsher, Amplify’s President and Chief Executive Officer, in a press release statement.

Willsher added that the company believes monetizing proved reserves and reinvesting those proceeds in high-return development wells at Beta "will be value enhancing to our shareholders."

Amplify Energy plans to provide updated full-year 2025 guidance when it releases its second quarter operating and financial results.

The company’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), and East Texas/North Louisiana.

In other recent news, Amplify Energy Corp reported its first-quarter 2025 earnings, showcasing a significant earnings per share (EPS) of $3.8, which far exceeded the forecasted $0.21. Despite a net loss of $5.9 million, this marked an improvement from the previous quarter’s $7.4 million loss. The company’s revenue for the quarter was $72 million, slightly below the expected $72.55 million. Amplify Energy’s production achievements, particularly at the Beta field with new wells, played a crucial role in this performance. The company has also reduced its capital program due to oil price uncertainties, focusing on cost reduction and portfolio optimization.

Additionally, Amplify Energy executed a series of transactions to monetize its Haynesville acreage, generating $9.2 million in total proceeds while retaining a 10% working interest in more than 30 development opportunities. The company has outlined a cautious yet optimistic outlook, emphasizing its diversified asset portfolio and robust hedge positions. Despite challenges such as negative free cash flow and decreased adjusted EBITDA, Amplify remains committed to improving its financial health and operational efficiency. CEO Martin Wilshire expressed confidence in the company’s future, underscoring the importance of its diversified portfolio and hedge book in protecting cash flow.

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