Amplify Energy Corp.

Previous wording

We continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations; the Russia-Ukraine conflict; conflicts or entanglements in the Middle East or South America; global inventories of oil and natural gas and the uncertainty associated with recovering oil demand; inflation and future monetary policy; and governmental policies aimed at transitioning towards lower carbon energy. The Russia-Ukraine conflict and conflicts or entanglements in the Middle East and South America continue to evolve, and the extent to which these events may impact our business, results of operations, financial condition and cash flows will depend on future developments, which are highly uncertain and cannot be predicted with confidence.

Current wording

We continue to monitor the impact of the actions of the Organization of the Petroleum Exporting Countries and other large producing nations; the Russia-Ukraine conflict; conflicts or entanglements in the Middle East; global inventories of oil and natural gas and the uncertainty associated with recovering oil demand; inflation and future monetary policy; and governmental policies aimed at transitioning towards lower carbon energy. The Russia-Ukraine conflict and conflicts or entanglements in the Middle East continue to evolve, and the extent to which these events may impact our business, results of operations, financial condition and cash flows will depend on future developments, which are highly uncertain and cannot be predicted with confidence.

Previous wording

Royalty relief rates will be suspended in months in which the rolling 12-month weighted average NYMEX oil and Henry Hub gas price exceeds $79.65 per BOE, which represents a 25% premium to the average realized price recognized by the Company during the qualification period. Royalty relief will end in the event that the rolling 12-month weighted average commodity prices exceed $79.65 per BOE, or if monthly production doubles the qualifying months’ average for 12 consecutive months.

Current wording

Royalty relief rates will be suspended in months in which the rolling 12-month weighted average NYMEX oil and Henry Hub gas price exceeds $79.65 per BOE, which represents a 25% premium to the average realized price recognized by the Company during the qualification period. Royalty relief will end in the event that the rolling 12-month weighted average commodity price exceed $79.65 per BOE, or if monthly production doubles the qualifying months’ average for 12 consecutive months.

Previous wording

The results of operations for the three months ended March 31, 2026 and 2025 have been derived from our unaudited condensed consolidated financial statements.

Current wording

The results of operations for the three and six months ended June 30, 2026 and 2025 have been derived from our unaudited condensed consolidated financial statements.

Previous wording

Oil, natural gas and NGL revenues were $37.3 million and $70.3 million for the three months ended March 31, 2026 and 2025, respectively. Average net production volumes were approximately 6.4 MBoe/d and 17.9 MBoe/d for the three months ended March 31, 2026 and 2025, respectively. The average realized sales prices were $64.26 per Boe and $43.76 per Boe for the three months ended March 31, 2026 and 2025, respectively. The decrease of $33.0 million in oil, natural gas and NGL revenue was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. Oil revenues for our Beta and Bairoil assets were $37.4 million and $39.9 million for the three months ended March 31, 2026 and 2025, respectively. The change in oil revenue at Beta and Bairoil was primarily due to lower realized oil commodity prices.

Current wording

Oil, natural gas and NGL revenues were $52.6 million and $66.8 million for the three months ended June 30, 2026 and 2025, respectively. Average net production volumes were approximately 6.8 MBoe/d and 19.1 MBoe/d for the three months ended June 30, 2026 and 2025, respectively. The average realized sales prices were $85.14 per Boe and $38.38 per Boe for the three months ended June 30, 2026 and 2025, respectively. The decrease of $14.2 million in oil, natural gas and NGL revenue was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. Oil revenues for our Beta and Bairoil assets were $52.5 million and $37.9 million for the three months ended June 30, 2026 and 2025, respectively. The change in oil revenue at Beta and Bairoil was primarily due to higher realized oil commodity prices and higher volumes.

Previous wording

Other revenues were $0.2 million and $1.7 million for the three months ended March 31, 2026 and 2025, respectively. The decrease of $1.5 million in other revenue was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. For the three months ended March 31, 2026, other revenues primarily consisted of $0.1 million for pipeline transportation income. For the three months ended March 31, 2025, other revenues consisted of service revenues of $0.9 million with respect to our wholly owned subsidiary, Magnify Energy Services, and iodine sales of $0.7 million.

Current wording

Other revenues were $0.1 million and $1.6 million for the three months ended June 30, 2026 and 2025, respectively. The decrease of $1.5 million in other revenue was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. For the three months ended June 30, 2026, other revenues primarily consisted of other income for pipeline transportation income. For the three months ended June 30, 2025, other revenues consisted of $1.1 million for service revenues with respect to our wholly owned subsidiary, Magnify Energy Services (“Magnify”), and $0.5 million for iodine sales.

Previous wording

Lease operating expenses were $22.2 million and $37.4 million for the three months ended March 31, 2026 and 2025, respectively. On a per Boe basis, lease operating expenses were $38.20 and $23.28 for the three months ended March 31, 2026 and 2025, respectively. The decrease of $15.2 million in lease operating expense was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. Lease operating expenses for Beta and Bairoil were $22.0 million and $27.0 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in lease operating expenses at Beta and Bairoil was primarily driven by lower CO 2 costs and electricity at Bairoil and lower base costs at Beta.

Current wording

Lease operating expenses were $22.7 million and $38.6 million for the three months ended June 30, 2026 and 2025, respectively. The decrease of $16.0 million in lease operating expenses was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. Lease operating expenses for Beta and Bairoil were $22.7 million and $27.4 million for the three months ended June 30, 2026 and 2025, respectively. At Beta, the decrease in lease operating expenses was due to lower base lease operating costs, partially offset by higher workovers. At Bairoil, the decrease in lease operating expenses was primarily driven by lower CO 2 and electricity costs.

Previous wording

Gathering, processing and transportation expenses were $0.8 million and $4.3 million for the three months ended March 31, 2026 and 2025, respectively. On a per Boe basis, gathering, processing and transportation expenses were $1.31 and $2.67 for the three months ended March 31, 2026 and 2025, respectively. The decrease of $3.5 million in gathering, processing and transportation expenses was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. Gathering, processing and transportation expenses for Beta were $0.7 million and $0.6 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Gathering, processing and transportation expenses were $0.7 million and $4.7 million for the three months ended June 30, 2026 and 2025, respectively. The decrease of $4.0 million in gathering, processing and transportation expenses was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. Gathering, processing and transportation expenses for Beta were $0.7 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Taxes other than income were $2.3 million and $4.4 million for the three months ended March 31, 2026 and 2025, respectively. On a per Boe basis, taxes other than income were $4.03 and $2.73 for the three months ended March 31, 2026 and 2025, respectively. The decrease of $2.0 million in taxes other than income was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. Taxes other than income at Beta and Bairoil were $2.3 million and $3.0 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in taxes other than income was primarily driven by lower production taxes and lower NOx credits purchased.

Current wording

Taxes other than income were $3.0 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively. The decrease of $1.3 million in taxes other than income was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. Taxes other than income at Beta and Bairoil were $3.0 million and $2.6 million for the three months ended June 30, 2026 and 2025, respectively. The increase in taxes other than income was primarily related to production taxes, which were driven by higher commodity prices, partially offset by lower NOx credits purchased.

Previous wording

Depreciation, depletion & amortization (“DD&A”) expenses were $5.7 million and $8.5 million for the three months ended March 31, 2026 and 2025, respectively. The decrease of $2.8 million in DD&A expense was primarily driven by the divestiture of our East Texas, Oklahoma and our non-operated Eagle Ford assets in 2025. DD&A expenses for Beta and Bairoil were $5.6 million and $4.0 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Depreciation, depletion & amortization (“DD&A”) expenses were $4.9 million and $9.8 million for the three months ended June 30, 2026 and 2025, respectively. The decrease of $4.8 million in DD&A expense was primarily driven by the divestiture of our East Texas, Oklahoma and non-operated Eagle Ford assets in 2025. DD&A expenses for Beta and Bairoil were $4.9 million and $4.4 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

Gain on sale of properties was $0.2 million and $6.3 million for the three months ended March 31, 2026 and 2025. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements under “Item 1. Financial Statements” of this quarterly report for additional information.

Current wording

Gain on sale of properties was $1.6 million and $1.5 million for the three months ended June 30, 2026 and 2025. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements under “Item 1. Financial Statements” of this quarterly report for additional information.

Previous wording

Interest expense, net was $1.0 million for the three months ended March 31, 2026 and $3.5 million for the three months ended March 31, 2025. The change was primarily related to the Company paying off all outstanding debt as of December 31, 2025. In 2026, the Company will continue to have interest expense associated with its surety bonds.

Current wording

Interest expense, net was $0.9 million for the three months ended June 30, 2026 and $3.6 million for the three months ended June 30, 2025. The change was primarily related to the Company paying off all outstanding debt as of December 31, 2025. In 2026, the Company will continue to have interest expense associated with its surety bonds.

Previous wording

Deferred income tax benefit (expense)was $11.6 million and $1.5 million for the three months ended March 31, 2026 and 2025, respectively. See additional information discussed in Note 17 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Current wording

Deferred income tax benefit (expense)was ($5.9) million and ($1.4) million for the three months ended June 30, 2026 and 2025, respectively. See additional information discussed in Note 17 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Previous wording

We reported a net loss of $38.1 million compared to a net loss of $5.9 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

We reported a net loss of $20.8 million compared to net income of $0.5 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

General and administrative expenses were $8.9 million and $10.8 million for the three months ended March 31, 2026 and 2025, respectively. The change in general and administrative expenses was primarily related to (i) a decrease of $1.6 million in acquisition and divestiture costs; (ii) a decrease of $0.5 million for salaries and other payroll benefits, (iii) a decrease of $0.1 million in legal expense, partially offset by (i) an increase of $0.3 million in severance expense, (ii) an increase of $0.6 million due to the elimination of COPAS overhead charges and (iii) an increase of $0.2 million in stock compensation expense. In addition, general and administrative expenses for the three months ended March 31, 2026 included a credit of $0.5 million for the management fees received for the transition services related to the divestiture of our East Texas and Oklahoma assets.

Current wording

General and administrative expenses were $15.9 million and $22.0 million for the six months ended June 30, 2026 and 2025, respectively. The change in general and administrative expenses was primarily related to (i) a decrease of $3.8 million in acquisition and divestiture costs, (ii) a decrease of $1.9 million for salaries and other payroll benefits, (iii) a decrease of $0.6 million in stock compensation expense, (iv) a decrease of $0.5 million in legal expense partially offset by (i) an increase of $0.3 million in severance expense, (ii) an increase of $1.3 million due to the elimination of COPAS overhead charges and (iii) an increase of $0.5 million in bad debt expense.

Previous wording

Net loss (gain) on commodity derivative instruments of $45.8 million was recognized for the three months ended March 31, 2026, consisting of a $43.4 million decrease in the fair value of open positions and $2.6 million of cash settlements paid on expired positions, partially offset by $0.2 million of cash settlement received on terminated derivative instruments. Net loss on commodity derivative instruments of $14.3 million was recognized for the three months ended March 31, 2025, consisting of a $14.8 million decrease in the fair value of open positions, partially offset by $0.5 million of cash settlements received on expired positions.

Current wording

Net loss (gain) on commodity derivative instruments of $36.8 million was recognized for the six months ended June 30, 2026, consisting of a $20.8 million decrease in the fair value of open positions and $16.2 million of cash settlements paid on expired positions partially offset by $0.2 million of cash settlement received on terminated derivative instruments. A net gain on commodity derivative instruments of $7.8 million was recognized for the six months ended June 30, 2025, consisting of a $2.6 million increase in the fair value of open positions and $5.3 million of cash settlements received on expired positions.

Previous wording

Current income tax benefit (expense)was $0.0 million and was less than ($0.1) million for the three months ended March 31, 2026 and 2025, respectively. See additional information discussed in Note 17 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Current wording

Deferred income tax benefit (expense) was $5.7 million and $0.1 million for the six months ended June 30, 2026 and 2025, respectively. See additional information discussed in Note 17 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Previous wording

We include in this report the non-GAAP financial measure of Adjusted Net Income (Loss) and Adjusted EBITDA and provide our reconciliation of net income (loss) to Adjusted Net Income (Loss), Adjusted EBITDA to net income (loss), and net cash flows from operating activities, our most directly comparable financial measures calculated and presented in accordance with GAAP.

Current wording

We include in this report the non-GAAP financial measure of Adjusted Net Income (Loss) and Adjusted EBITDA and provide our reconciliation of net income (loss) to Adjusted Net Income (Loss) and Adjusted EBITDA to net income (loss) and net cash flows from operating activities, our most directly comparable financial measures calculated and presented in accordance with GAAP.

Previous wording

We evaluate counterparty risks related to our commodity derivative contracts and trade credit. Should any of these financial counterparties not perform, we may not realize the benefit of some of our hedges under lower commodity prices. We sell our oil to a small number of purchasers. Non-performance by a customer could also result in a loss.

Current wording

We evaluate counterparty risks related to our commodity derivative contracts and trade credit. Should any of these financial counterparties not perform, we may not realize the benefit of some of our hedges under lower commodity prices. We sell our oil to a small number of purchasers. Our marketing deducts have recently increased due to a reduction in refining capacity in California. As a result, we are exploring multiple options aimed at increasing our available markets and creating new customer relationships. Non-performance by a customer could also result in a loss.

Previous wording

Capital Expenditures. Our total capital expenditures were approximately $21.0 million for the three months ended March 31, 2026, which were primarily related to the development program at Beta.

Current wording

Capital Expenditures. Our total capital expenditures were approximately $41.7 million for the six months ended June 30, 2026, which were primarily related to the development program at Beta.

Previous wording

As of March 31, 2026, we had working capital (excluding commodity derivatives) of $34.6 million primarily from cash on hand of $41.5 million, accounts receivable of $19.9 million and prepaid expenses of $23.9 million partially offset by accrued liabilities of $20.7 million, revenues payable of $7.5 million, and accounts payable of $22.5 million.

Current wording

As of June 30, 2026, we had working capital (excluding commodity derivatives) of $18.2 million primarily from cash on hand of $21.2 million, accounts receivable of $19.5 million and prepaid expenses and other current assets of $25.0 million partially offset by accrued liabilities of $20.4 million, revenues payable of $5.0 million, and accounts payable of $22.1 million.

Previous wording

Sinking Fund Payments**.** We have a funding requirement to fund two trust accounts to comply with supplemental regulatory bonding requirements related to our decommissioning obligations for the Beta production facilities. As of March 31, 2026, our future commitments under these agreements were $6.8 million for the remainder of 2026 and $9.0 million per year until the escrow accounts are fully funded. See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.

Current wording

Sinking Fund Payments**.** We have a funding requirement to fund two trust accounts to comply with supplemental regulatory bonding requirements related to our decommissioning obligations for the Beta production facilities. As of June 30, 2026, our future commitments under these agreements were $4.5 million for the remainder of 2026 and $9.0 million per year until the escrow accounts are fully funded. See Note 16 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.

Previous wording

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated. The cash flows for the three months ended March 31, 2026 and 2025 have been derived from our Unaudited Condensed Consolidated Financial Statements. As a result of the divestiture activity in 2025, the period-to-period comparisons of these results and certain financial data may not be comparable or indicative of future results. For information regarding the individual components of our cash flow amounts, see our Unaudited Condensed Consolidated Statements of Cash Flows included under “Item 1. Financial Statements” of this quarterly report.

Current wording

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated. The cash flows for the six months ended June 30, 2026 and 2025 have been derived from our Unaudited Condensed Consolidated Financial Statements. As a result of the divestiture activity in 2025, the period-to-period comparisons of these results and certain financial data may not be comparable or indicative of future results. For information regarding the individual components of our cash flow amounts, see our Unaudited Condensed Consolidated Statements of Cash Flows included under “Item 1. Financial Statements” of this quarterly report.

Previous wording

Operating Activities. Key drivers of net operating cash flows are commodity prices, production volumes and operating costs. Net cash provided by operating activities was $4.5 million and $25.5 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Operating Activities. Key drivers of net operating cash flows are commodity prices, production volumes and operating costs. Net cash provided by operating activities was $7.3 million and $49.2 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Production volumes were approximately 6.4 MBoe/d and 17.9 MBoe/d for the three months ended March 31, 2026 and 2025, respectively. The average realized sales price was $64.26 per Boe and $43.76 per Boe for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Production volumes were approximately 6.6 MBoe/d and 18.5 MBoe/d for the six months ended June 30, 2026 and 2025, respectively. The average realized sales price was $75.03 per Boe and $40.96 per Boe for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2026 included $2.6 million of cash paid on expired commodity derivative instruments compared to $0.5 million of cash received on expired commodity derivatives for the three months ended March 31, 2025. For the three months ended March 31, 2026, we had a net loss on commodity derivative instruments of $45.8 million compared to a net loss on commodity derivative instruments of $14.3 million for the three months ended March 31, 2025.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2026 included $16.2 million of cash paid on expired commodity derivative instruments compared to $5.3 million of cash received on expired commodity derivatives for the six months ended June 30, 2025. For the six months ended June 30, 2026, we had a net loss on commodity derivative instruments of $36.8 million compared to a net gain on commodity derivative instruments of $7.8 million for the six months ended June 30, 2025.

Previous wording

Investing Activities. Net cash used in investing activities for the three months ended March 31, 2026 was $21.6 million, of which $19.0 million was used for additions to oil and natural gas properties. Net cash used in investing activities for the three months ended March 31, 2025 was $21.5 million. Additions to oil and natural gas properties were $24.9 million for the three months ended March 31, 2025 and $0.3 million for additions to other property and equipment for the three months ended March 31, 2025.

Current wording

Investing Activities. Net cash used in investing activities for the six months ended June 30, 2026 was $44.6 million, of which $42.2 million was used for additions to oil and natural gas properties. Net cash used in investing activities for the six months ended June 30, 2025 was $50.2 million. Additions to oil and natural gas properties were $52.2 million for the six months ended June 30, 2025 and $0.6 million for additions to other property and equipment for the six months ended June 30, 2025.

Previous wording

In January 2025, we purchased and sold certain rights, title and interest in assets in East Texas to a third party, whereby we received net proceeds of $6.3 million. See additional information discussed in Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Current wording

During 2025, we purchased and sold certain rights, title and interest in assets in East Texas to a third party, whereby we received net proceeds of $7.8 million. See additional information discussed in Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report.

Previous wording

Various restricted investment accounts fund certain long-term contractual and regulatory asset retirement obligations and collateralize certain regulatory bonds associated with our Beta properties. Additions to restricted investments were $2.5 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Various restricted investment accounts fund certain long-term contractual and regulatory asset retirement obligations and collateralize certain regulatory bonds associated with our Beta properties. Additions to restricted investments were $5.0 million and $5.1 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Financing Activities**.** Shares withheld for taxes were $2.1 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively. The Company had no debt outstanding for the three months ended March 31, 2026. For the three months ended March 31, 2025 we had net repayments of $2.0 million related to our Revolving Credit Facility.

Current wording

Financing Activities**.** Shares withheld for taxes were $2.1 million and $2.0 million for the six months ended June 30, 2026 and 2025, respectively. The Company had no debt outstanding for the six months ended June 30, 2026. For the six months ended June 30, 2025 we had net borrowings of $3.0 million related to our Revolving Credit Facility.