The royalty relief is a material positive catalyst that improves net production by ~10% and adds >$12M annualized revenue at current WTI ~$72/bbl. However, Q1 FCF was deeply negative (-$18.1M) due to elevated capex, and the drilling program faces delays (C32 well lost, C55 sidetrack delayed). Watch for the Q2 2026 operational update to confirm royalty relief benefits and whether the company can stay within its $45-65M capex guidance while completing wells on the revised schedule.
Price Chart
Executive Summary
Amplify Energy reported Q1 2026 results with a GAAP net loss of $38.1M ($0.93/share) driven by a $43.4M non-cash unrealized loss on derivatives, while Adjusted Net Income was $5.3M. The company secured Beta field royalty relief effective May 1, 2026, cutting its royalty burden by ~50% to 12.5%, which is expected to generate over $1.0M/month in incremental revenue. Full-year 2026 guidance was reaffirmed, with Adjusted EBITDA expected at the high end of the $20M-$45M range due to higher commodity prices.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP net loss of $38.1M vs net income of $64.4M in Q4 2025 (which included a large gain on asset sales)
- Adjusted Net Income of $5.3M and Adjusted EBITDA of $3.8M, both described as 'in line with expectations'
- Free Cash Flow was negative $18.1M in Q1 2026 vs positive $2.0M in Q4 2025
- Beta field royalty relief effective May 1, 2026 reduces royalty burden from ~25% to ~12.5%, adding over 600 bopd net production and >$1.0M/month incremental revenue
- Full-year 2026 guidance reaffirmed: oil production 6.7-7.9 MBbls/d, Adjusted EBITDA $20M-$45M, capital $45M-$65M
- As of March 31, 2026: $41.5M cash, no debt, $56.5M total liquidity
- C04 well in Joulters fault block delivered IP30 of 500 Bopd; C32 well abandoned due to tool failure
- First four wells of 2026 program now expected to complete early Q3 2026 (vs prior expectation of end of June)
Financial Impact
Royalty relief expected to generate >$1.0M/month incremental revenue at current prices; Q1 FCF negative $18.1M vs positive $2.0M prior quarter
Risk Factors
- Drilling program delays: C32 well abandoned, C55 sidetrack delayed to late Q2, first four wells now expected early Q3
- Negative free cash flow of $18.1M in Q1 could pressure liquidity if sustained
- Commodity price exposure: realized oil price of $60.49/bbl (inclusive of derivatives) vs $63.10 in Q4 2025
- Bairoil production declined 6% QoQ due to compressor disruptions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-058653 |
| Document: ampy-20260511x8k.htm | 0001104659-26-058653 |
| Document: 0001104659-26-058653-index-headers.html | 0001104659-26-058653 |
| Document: 0001104659-26-058653-index.html | 0001104659-26-058653 |
| Document: 0001104659-26-058653.txt | 0001104659-26-058653 |
| 8-K Data (Synthetic) | 0001104659-26-058653 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 10, 2026 11w ago | 8-K | $4.51 | awaiting T+60 | — | $4.45 (−1.33%) |
Jun 11, 2026 19w ago | Institutional Cluster | $4.38 $4.90 | ▲ +11.87% | ▲ +7.48% | $4.45 (+1.60%) |
May 11, 2026 24w ago | 8-K | $5.27 $4.08 | ▼ −22.58% | ▼ −26.96% | $4.45 (−15.56%) |
May 11, 2026 24w ago | Press Release | $5.27 $4.08 | ▼ −22.58% | ▼ −26.96% | $4.45 (−15.56%) |
Apr 23, 2026 26w ago | DEFA14A | $5.84 $4.03 | ▼ −30.99% | ▼ −36.07% | $4.45 (−23.80%) |
Mar 13, 2026 32w ago | 8-K/A | $6.54 $4.55 | ▼ −30.43% | ▼ −42.04% | $4.45 (−31.96%) |
Mar 4, 2026 33w ago | Press Release | $6.00 $4.77 | ▲ +20.50% | ▲ +31.80% | $4.45 (+25.83%) |
US Market Status
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