An independent oil and gas producer that pumps crude from two very different places: the Beta field offshore Southern California, about nine miles off Huntington Beach, and the Bairoil complex in Wyoming. It was born in 2017 when Memorial Production Partners reorganized out of bankruptcy and took the new name "Amplify." A fun twist: its Beta platforms move oil through the San Pedro Bay Pipeline, which made headlines in 2021 when an undersea pipeline rupture caused a major spill near the coast.
Amplify Energy swung to a $17.3M Q2 profit as a $22.6M derivative gain and higher oil prices offset a 64% production drop.
A non-cash derivative gain turned the quarter profitable. fell 22.9% to $52.7 million as production collapsed 64% following the 2025 asset sales, but a $22.6 million on hedges and a 122% increase in realized oil prices to $85.14 per Boe drove to $17.3 million. The company is now debt-free with $21.2 million in cash, but its earnings depend on a hedge book and a single field.
Key takeaways
reached $17.3 million, a swing from a $38.1 million loss in Q1 2026, driven by a $9.0 million net gain on commodity derivatives that included a $22.6 million non-cash , partially offset by $13.6 million in cash settlements paid.
Oil, natural gas, and NGL revenues fell 22.9% to $52.7 million as total production dropped 64% to 6.8 thousand barrels of oil equivalent per day, a direct result of the 2025 divestitures that shrank the portfolio to only the Beta and Bairoil fields.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose to $17.3M driven by higher oil prices and lower costs post-2025 divestitures, despite sharply lower production volumes.
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Oil, natural gas, and NGL revenues fell 21% to $52.6M for Q2 2026, as a 64% drop in total production volumes to 6.8 from asset sales was partially offset by a 122% increase in average realized prices to $85.14 per Boe.
Average realized prices rose 122% to $85.14 per barrel of oil equivalent, which management cited as the factor that partially offset the steep production decline.
Lease operating expense decreased 41% to $22.7 million, reflecting the shrunken asset base, with lower base lease costs, CO2, and electricity expenses at the remaining Beta and Bairoil fields.
General and administrative expense fell 38% to $7.0 million, driven by lower acquisition and divestiture costs, reduced salaries, and lower .
The company ended the quarter with $21.2 million in cash, no , and a $15.0 million undrawn , and authorized a new $15.0 million program in August 2026.
What changed
The Q1 2026 watch item on whether the $45–$65 million capital program could be funded from cash and cash flow remains open: Q2 was just $2.8 million, down from $4.5 million in Q1, leaving the $41.5 million cash balance at the start of the quarter reduced to $21.2 million by quarter-end.
Total production fell further to 6.8 MBoe/d from 6.4 MBoe/d in Q1 2026, indicating that the Beta development program has not yet offset natural declines at Bairoil, a concern flagged in prior quarters.
The derivative book again determined profitability, as flagged in Q1 2026: a $22.6 million non-cash replaced the prior quarter's $43.4 million non-cash loss, swinging the company from a net loss to a .
The material weakness in internal controls flagged in the FY 2025 10-K was not mentioned as remediated in this filing, and the risk factors note no material changes from the 2025 10-K.
What to watch
Whether the $45–$65 million 2026 capital program, 97% allocated to Beta, can be funded from the remaining $21.2 million in cash and future , given that H1 2026 operating cash flow totaled only $7.3 million.
Whether total production stabilizes or grows from 6.8 MBoe/d, and whether the Beta development program can offset natural declines at Bairoil now that the portfolio is concentrated in only two fields.
The level of future derivative gains or losses, given that a $22.6 million non-cash fair value swing determined this quarter's profitability and the hedge book remains the single largest influence on reported earnings.
Whether the End-of-Life Royalty Relief at Beta, effective May 1, 2026, materially reduces per-unit lease operating costs and improves margins in coming quarters.
decreased 41% to $22.7M, primarily due to the 2025 divestitures, with remaining Beta and Bairoil assets benefiting from lower base lease costs, CO2, and electricity expenses.
General and administrative expense fell 38% to $7.0M, driven by lower acquisition/divestiture costs, reduced salaries, and lower stock compensation, partially offset by higher bad debt expense.
The company recognized a $9.0M net gain on commodity derivatives in Q2 2026, compared to a $22.2M gain a year ago, as a $22.6M unrealized gain was largely offset by $13.6M in cash settlements paid.
Liquidity remains supported by $21.2M in cash and a $15.0M undrawn , with no debt outstanding after paying off all borrowings at the end of 2025.
A new $15.0M program was authorized in August 2026, and Beta received End-of-Life Royalty Relief effective May 1, 2026, reducing its primary royalty rate from ~25% to 12.5%.
Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item. 44 Table of Contents
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We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.
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For a discussion of the legal proceedings associated with the Incident, see Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report and the annual financial statements and related notes…
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For a discussion of the legal proceedings associated with the Incident, see Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report and the annual financial statements and related notes included in our 2025 Form 10-K.
Future litigation may be necessary, among other things, to defend ourselves by determining the scope, enforceability, and validity of claims. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
Our business faces many risks. Any of the risks discussed elsewhere in this quarterly report and our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that…
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Our business faces many risks. Any of the risks discussed elsewhere in this quarterly report and our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. There have been no material changes to the risk factors disclosed in Part I, Item 1A in our 2025 Form 10-K.