Amplify Energy Corp.
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
AMPY$3.20-3.9%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001104659-26-093408
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001104659-26-124496
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 109 current paragraphs.
55 unchanged; 38 reworded; 16 added; 12 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 33 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Special Case Royalty Relief
Current report
On October 30, 2026, the Marine Minerals Administration informed the Company that it had been approved for Special Case Royalty Relief for the Company’s interests in three Pacific Outer Continental Shelf blocks (P-0300, P-0301, and P-0306), referred to as the Beta properties. The royalty relief is effective November 1, 2026 for the Beta properties’ leases. Special Case Royalty Relief at the Beta properties reduces the royalty rate on all production to approximately 12.5% for leases OCS-P 0300 and OCS-P 0301 and approximately 8.33% for lease OCS-P 0306. Special Case Royalty Relief rates will be suspended in months in which the rolling 12-month weighted average NYMEX oil and Henry Hub gas price exceeds $91.85 per BOE. Special Case Royalty relief will end in the event that the rolling 12-month weighted average commodity price exceed $91.85 per BOE.
Current report
As previously announced, on August 6, 2026, our board of directors of the Company approved a program authorizing the repurchase of up to $15.0 million of our common stock through and including December 31, 2026. As of November 6, 2026, approximately $8.1 million remained available under the share repurchase program. We are not obligated to repurchase any particular amount of common stock and may suspend or terminate the program at any time.
Current report
With the approval of Special Case Royalty Relief that was effective for November 1,2026, the Company provided notice to terminate the End-of-Life Royalty Relief.
Current report
On October 30, 2026, the Marine Minerals Administration informed the Company that it had been approved for Special Case Royalty Relief for the Company’s interests in three Pacific Outer Continental Shelf blocks (P-0300, P-0301, and P-0306), referred to as the Beta properties. The royalty relief is effective November 1, 2026 for the Beta properties’ leases. Special Case Royalty Relief at the Beta properties reduces the royalty rate on all production to approximately 12.5% for leases OCS-P 0300 and OCS-P 0301 and approximately 8.33% for lease OCS-P 0306. Special Case Royalty Relief rates will be suspended in months in which the rolling 12-month weighted average NYMEX oil and Henry Hub gas price exceeds $91.85 per BOE. Special Case Royalty relief will end in the event that the rolling 12-month weighted average commodity price exceed $91.85 per BOE.
Current report
We reported a net loss of $18.9 million compared to a net loss of $21.0 million for the three months ended September 30, 2026 and 2025, respectively.
Current report
Deferred income tax benefit (expense)was $3.5 million and $9.2 million for the three months ended September 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.
Current report
For the Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025
Current report
Current income tax benefit (expense) was $1.3 million and ($0.4) million for the nine months ended September 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.
Current report
Deferred income tax benefit (expense) was $9.2 million and $9.3 million for the nine months ended September 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.
Current report
Operating Activities
Current report
Investing Activities
Current report
Net cash used in investing activities for the nine months ended September 30, 2026 was $55.8 million, of which $50.8 million was used for additions to oil and natural gas properties, $7.6 million for additions to restricted investments and $2.7 million for divestiture post-closing adjustment receipts.
Current report
Financing Activities
Current report
Net cash used in financing activities for the nine months ended September 30, 2026 was $5.3 million, of which $2.1 million was used for shares withheld for taxes and $3.1 million used for Common Stock repurchased and retired under the share repurchase program. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information related to the share repurchase program.
Current report
Net cash used in financing activities for the nine months ended September 30, 2025 was $6.1 million, of which $4.0 million were for net repayments on our Revolving Credit Facility and $2.0 million was used for shares withheld for taxes.
Removed paragraphs (12)
Previous report
Share Repurchase Program
Previous report
On August 6, 2026, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $15.0 million of Common Stock. Using recent prices, a fully executed program would represent approximately 10% of the Company's outstanding shares. Under the share repurchase program, repurchases may begin after market open on August 11, 2026 and continue through and including December 31, 2026.
Previous report
Repurchases under the share repurchase program may be made from time to time through open market repurchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of its Common Stock under this authorization. The Company is not obligated under the share repurchase program to acquire any particular amount of Common Stock, and the Company may terminate or suspend the share repurchase program at any time. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities.
Previous report
We reported net income of $17.3 million compared to net income of $6.4 million for the three months ended June 30, 2026 and 2025, respectively.
Previous report
Current income tax benefit (expense). The Company had no current income tax benefit (expense) for the three months ended June 30, 2026 compared to ($0.5) million for the three months ended June 30, 2025. 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 report
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 report
For the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Previous report
Current income tax benefit (expense). The Company had no current income tax benefit (expense) for the six months ended June 30, 2026 compared to ($0.5) million for the six months ended June 30, 2025. 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 report
During 2026, the Company generated investing cash flows from the final post-closing adjustments related to its divested assets: $3.2 million of proceeds related to the East Texas divestiture and $0.5 million payment for the final post-closing adjustment for Oklahoma.
Previous report
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 report
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 report
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.
Reworded paragraphs (38)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and accompanying notes in “Item 1. Financial Statements” contained herein and in “Item 1A. Risk Factors” of our 2025 Form 10-K. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements” in the front of this report.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and accompanying notes in “Item 1. Financial Statements” contained herein and in “Item 1A. Risk Factors” of our 2025 Form 10-K. The following discussion contains forward-looking statements that reflect our future plans, estimates, beliefs and expected performance. The forward-looking statements are dependent upon events, risks and uncertainties that may be outside our control. Our actual results could differ materially from those discussed in these forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements” in the front of this quarterly report.
Previous wording
In 2025, the Company worked to simplify its portfolio and strengthen its balance sheet. The Company made significant progress towards this goal throughout 2025, with the first transaction occurring in the first quarter of 2025 with the East Texas Haynesville monetization. Throughout the remainder of 2025, the Company completed additional divestiture transactions, including monetization and asset sales. These transactions continued management’s efforts to simplify the Company’s asset base. Management believes the divestiture transactions strengthened liquidity and further streamlined the Company’s asset portfolio. None of the asset dispositions qualified as discontinued operations.
Current wording
In 2025, the Company worked to simplify its portfolio and strengthen its balance sheet. Throughout 2025, the Company completed divestiture transactions in connection with its East Texas/North Louisiana, Oklahoma and non-operated Eagle Ford properties. These transactions continued management’s efforts to simplify the Company’s asset base. Management believes the divestiture transactions strengthened liquidity and further streamlined the Company’s asset portfolio. None of the asset dispositions qualified as discontinued operations.
Previous 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.
Current wording
The results of operations for the three and nine months ended September 30, 2026 and 2025 have been derived from our unaudited condensed consolidated financial statements.
Previous 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.
Current wording
Oil, natural gas and NGL revenues were $51.3 million and $64.2 million for the three months ended September 30, 2026 and 2025, respectively. Average net production volumes were approximately 7.4 MBoe/d and 19.7 MBoe/d for the three months ended September 30, 2026 and 2025, respectively. The average realized sales prices were $75.19 per Boe and $35.47 per Boe for the three months ended September 30, 2026 and 2025, respectively. The decrease of $12.9 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, partially offset by higher realized oil commodity prices. Oil revenues for our Beta and Bairoil assets were $51.3 million and $38.2 million for the three months ended September 30, 2026 and 2025, respectively. The change in oil revenue at Beta and Bairoil was primarily due to higher realized oil commodity prices.
Previous 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.
Current wording
Other revenues were $0.1 million and $2.2 million for the three months ended September 30, 2026 and 2025, respectively. The decrease of $2.0 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 September 30, 2026, other revenues primarily consisted of other income for pipeline transportation income. For the three months ended September 30, 2025, other revenues consisted of $1.1 million for services revenue with respect to our wholly owned subsidiary, Magnify Energy Services (“Magnify”), and $0.8 million for iodine sales.
Previous wording
Lease operating expenses were $44.8 million and $76.0 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $31.2 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 $44.6 million and $54.5 million for the six 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.
Current wording
Lease operating expenses were $22.7 million and $35.6 million for the three months ended September 30, 2026 and 2025, respectively. The decrease of $12.9 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 $22.5 million and $27.0 million for the three months ended September 30, 2026 and 2025, respectively. The decrease in lease operating expenses was primarily driven by lower CO 2 costs.
Previous 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.
Current wording
Gathering, processing and transportation expenses were $1.0 million and $5.2 million for the three months ended September 30, 2026 and 2025, respectively. The decrease of $4.2 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 $1.0 million and $1.1 million for the three months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Taxes other than income were $3.2 million and $3.7 million for the three months ended September 30, 2026 and 2025, respectively. The decrease of $0.5 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 $3.1 million and $2.3 million for the three months ended September 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.
Previous 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.
Current wording
Depreciation, depletion & amortization (“DD&A”) expenses were $5.6 million and $9.0 million for the three months ended September 30, 2026 and 2025, respectively. The decrease of $3.4 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 $5.6 million and $5.0 million for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Impairment expense. No impairment expense was recorded for the three months ended June 30, 2026. The Company recorded impairment expense of $8.4 million for the three months ended June 30, 2025. The Company recognized an impairment expense to reduce the net book value of our non-operated Eagle Ford assets to fair value less costs to sell. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.
Current wording
Impairment expense. No impairment expense was recorded for the three months ended September 30, 2026. The Company recorded impairment expense of $34.0 million for the three months ended September 30, 2025. The Company recognized an impairment charge due to the carrying value of the assets exceeding the fair market value of the assets. See Note 5 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.
Previous wording
General and administrative expenses were $7.0 million and $11.2 million for the three months ended June 30, 2026 and 2025, respectively. The change in general and administrative expenses was primarily related to (i) a decrease of $2.2 million in acquisition and divestiture costs; (ii) a decrease of $1.4 million for salaries and other payroll benefits, (iii) a decrease of $0.7 million in stock compensation expense, and (iv) a decrease of $0.4 million in legal expense, partially offset by (i) an increase of $0.5 million in bad debt expense and (ii) an increase of $0.7 million due to the elimination of COPAS overhead charges.
Current wording
General and administrative expenses were $6.2 million and $11.8 million for the three months ended September 30, 2026 and 2025, respectively. The change in general and administrative expenses was primarily related to (i) a decrease of $1.4 million in severance expense; (ii) a decrease of $1.5 million for salaries and other payroll benefits, (iii) a decrease of $1.4 million in stock compensation expense, (iv) a decrease of $0.8 million in acquisition and divestiture costs and (v) a decrease of $0.1 million in legal expense, and partially offset by an increase of $0.6 million due to the elimination of COPAS overhead charges.
Previous wording
Net loss (gain) on commodity derivative instruments of ($9.0) million was recognized for the three months ended June 30, 2026, consisting of a $22.6 million increase in the fair value of open positions partially offset by $13.6 million of cash settlements paid on expired positions. Net gain on commodity derivative instruments of $22.2 million was recognized for the three months ended June 30, 2025, consisting of a $17.4 million increase in the fair value of open positions and $4.8 million of cash settlements received on expired positions.
Current wording
Net loss (gain) on commodity derivative instruments of $34.4 million was recognized for the three months ended September 30, 2026, consisting of a $24.6 million decrease in the fair value of open positions and $9.7 million of cash settlements paid on expired positions. Net gain on commodity derivative instruments of $6.9 million was recognized for the three months ended September 30, 2025, consisting of a $2.1 million increase in the fair value of open positions and $4.8 million of cash settlements received on expired positions.
Previous 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.
Current wording
Loss (gain) on sale of properties was less than $0.1 million and ($1.7) million for the three months ended September 30, 2026 and 2025, respectively. 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 $1.9 million and $7.1 million for the six months ended June 30, 2026 and 2025, respectively. 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 and $3.9 million for the three months ended September 30, 2026 and 2025, respectively. 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 $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.
Current wording
Current income tax benefit (expense)was $1.3 million and $0.1 million for the three months ended September 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 $20.8 million compared to net income of $0.5 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
We reported a net loss of $39.7 million compared to net loss of $20.4 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Oil, natural gas and NGL revenues were $89.8 million and $137.1 million for the six months ended June 30, 2026 and 2025, respectively. Average net 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 prices were $75.03 per Boe and $40.96 per Boe for the six months ended June 30, 2026 and 2025, respectively. The decrease of $47.3 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 $89.9 million and $77.8 million for the six 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, partially offset by lower volumes.
Current wording
Oil, natural gas and NGL revenues were $141.2 million and $201.4 million for the nine months ended September 30, 2026 and 2025, respectively. Average net production volumes were approximately 6.9 MBoe/d and 18.9 MBoe/d for the nine months ended September 30, 2026 and 2025, respectively. The average realized sales prices were $75.09 per Boe and $39.03 per Boe for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $60.2 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, partially offset by higher realized oil commodity prices. Oil revenues for our Beta and Bairoil assets were $141.2 million and $116.0 million for the nine months ended September 30, 2026 and 2025, respectively. The change in oil revenue at Beta and Bairoil was primarily due to higher realized oil commodity prices.
Previous wording
Other revenues were $0.3 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $3.0 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 six months ended June 30, 2026, other revenues primarily consisted of pipeline transportation income. For the six months ended June 30, 2025, other revenues primarily consisted of service revenues of $2.0 million for Magnify and iodine sales of $1.2 million.
Current wording
Other revenues were $0.4 million and $5.5 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $5.0 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 nine months ended September 30, 2026, other revenues primarily consisted of pipeline transportation income. For the nine months ended September 30, 2025, other revenues primarily consisted of services revenue of $3.1 million for Magnify and iodine sales of $2.0 million.
Previous 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.
Current wording
Lease operating expenses were $67.5 million and $111.7 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $44.1 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 $67.2 million and $81.4 million for the nine months ended September 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 $1.4 million and $9.0 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $7.6 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 $1.4 million and $1.5 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Gathering, processing and transportation expenses were $2.5 million and $14.2 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $11.8 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 $2.5 million and $2.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Taxes other than income were $5.4 million and $8.7 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $3.3 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 $5.4 million and $5.5 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Taxes other than income were $8.5 million and $12.3 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $3.8 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 $8.4 million and $7.8 million for the nine months ended September 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.
Previous wording
DD&A expenses were $10.6 million and $18.3 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $7.7 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 $10.6 million and $8.4 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
DD&A expenses were $16.2 million and $27.3 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $11.1 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 $16.2 million and $13.4 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Impairment expense. No impairment expense was recorded for the six months ended June 30, 2026. The Company recorded impairment expense of $8.4 million for the six months ended June 30, 2025. The Company recognized an impairment expense to reduce the net book value of our non-operated Eagle Ford assets to fair value less costs to sell. See Note 4 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.
Current wording
Impairment expense. No impairment expense was recorded for the nine months ended September 30, 2026. The Company recorded impairment expense of $42.5 million for the nine months ended September 30, 2025. The Company recognized an impairment charge due to the carrying value of the assets exceeding the fair market value of the assets. See Note 5 of the Notes to Unaudited Condensed Consolidated Financial Statements included under “Item 1. Financial Statements” of this quarterly report for additional information.
Previous 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.
Current wording
General and administrative expenses were $22.1 million and $33.8 million for the nine months ended September 30, 2026 and 2025, respectively. The change in general and administrative expenses was primarily related to (i) a decrease of $4.6 million in acquisition and divestiture costs, (ii) a decrease of $3.4 million for salaries and other payroll benefits, (iii) a decrease of $2.0 million in stock compensation expense, (iv) a decrease of $1.1 million in severance expense and (v) a decrease of $0.6 million in legal expense, and partially offset by (i) an increase of $1.9 million due to the elimination of COPAS overhead charges and (ii) an increase of $0.6 million in bad debt expense.
Previous 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.
Current wording
Net loss (gain) on commodity derivative instruments of $71.2 million was recognized for the nine months ended September 30, 2026, consisting of a $45.4 million decrease in the fair value of open positions and $25.9 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 $14.8 million was recognized for the nine months ended September 30, 2025, consisting of a $4.6 million increase in the fair value of open positions and $10.1 million of cash settlements received on expired positions.
Previous wording
Gain on sale of properties was $1.7 million and $7.8 million for the six months ended June 30, 2026 and 2025, respectively. The gain in 2025 primarily related to the sale of certain units with rights in the Haynesville basin in Harrison County, Texas. 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
Loss (gain) on sale of properties was ($1.7) million and ($9.5) million for the nine months ended September 30, 2026 and 2025, respectively. The gain in 2025 primarily related to the sale of certain units with rights in the Cotton Valley and Haynesville basin in Harrison County, Texas. 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 $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.
Current wording
Interest expense, net was $2.8 million and $11.0 million for the nine months ended September 30, 2026 and 2025, respectively. 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
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.
Current wording
We include in this quarterly report the non-GAAP financial measure of Adjusted Net Income (Loss) and Adjusted EBITDA and provide our reconciliation of 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
Our ability to finance our operations, including funding capital expenditures and acquisitions, to meet our indebtedness obligations, to refinance our indebtedness or to meet our collateral requirements will depend on our ability to generate cash in the future. Our primary sources of liquidity and capital resources have historically been cash flows generated by operating activities, borrowings under our Revolving Credit Facility, equity and debt capital markets and proceed from the sale of assets. However, future cash flows are subject to a number of variables, including the level of our oil and NGL production and the prices we receive for our oil production, and significant additional capital expenditures will be required to more fully develop our properties. We cannot assure you that operations and other needed capital will be available on acceptable terms, or at all. We anticipate funding our 2026 capital program from cash on hand and internally generated cash flow but retain the flexibility to utilize borrowings under debt facilities available to us, and/or to access the debt and equity capital markets. As we pursue reserve and production growth, we plan to monitor which capital resources, including equity and debt financings, are available to us to meet our future financial obligations, planned capital expenditure activities and liquidity requirements.
Current wording
Our ability to finance our operations, including funding capital expenditures and acquisitions, to meet our indebtedness obligations, to refinance our indebtedness or to meet our collateral requirements will depend on our ability to generate cash in the future. Our primary sources of liquidity and capital resources have historically been cash flows generated by operating activities, borrowings under our Revolving Credit Facility, equity and debt capital markets and proceeds from the sale of assets. However, future cash flows are subject to a number of variables, including the level of our oil and NGL production and the prices we receive for our oil production, and significant additional capital expenditures will be required to more fully develop our properties. We cannot assure you that operations and other needed capital will be available on acceptable terms, or at all. We anticipate funding our 2026 capital program from cash on hand and internally generated cash flow but retain the flexibility to utilize borrowings under debt facilities available to us, and/or to access the debt and equity capital markets. As we pursue reserve and production growth, we plan to monitor which capital resources, including equity and debt financings, are available to us to meet our future financial obligations, planned capital expenditure activities and liquidity requirements.
Previous 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.
Current wording
Capital Expenditures. Our total capital expenditures were approximately $49.7 million for the nine months ended September 30, 2026, which were primarily related to the development program at Beta.
Previous wording
Working Capital. Working capital is the amount by which current assets exceed current liabilities. Our working capital requirements are primarily driven by changes in accounts receivable and accounts payable, as well as the classification of our debt outstanding. These changes are impacted by changes in the prices of commodities that we buy and sell. In general, our working capital requirements increase in periods of rising commodity prices and decrease in periods of declining commodity prices. However, our working capital needs do not necessarily change at the same rate as commodity prices because both accounts receivable and accounts payable are impacted by the same commodity prices. In addition, the timing of payments received by our customers or paid to our suppliers can also cause fluctuations in working capital because we settle with most of our larger customers on a monthly basis and often near the end of the month. We expect that our future working capital requirements will be impacted by these same factors. From time-to-time, our working capital will reflect a deficit, while at other times it will reflect a surplus. This fluctuation is not unusual.
Current wording
Working Capital. Working capital is the amount by which current assets exceed current liabilities. Our working capital requirements are primarily driven by changes in accounts receivable and accounts payable, as well as the classification of our debt outstanding. These changes are impacted by changes in the prices of commodities that we buy and sell. In general, our working capital requirements increase in periods of rising commodity prices and decrease in periods of declining commodity prices. However, our working capital needs do not necessarily change at the same rate as commodity prices because both accounts receivable and accounts payable are impacted by the same commodity prices. In addition, the timing of payments received from our customers or paid to our suppliers can also cause fluctuations in working capital because we settle with most of our larger customers on a monthly basis and often near the end of the month. We expect that our future working capital requirements will be impacted by these same factors. From time-to-time, our working capital will reflect a deficit, while at other times it will reflect a surplus. This fluctuation is not unusual.
Previous 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.
Current wording
As of September 30, 2026, we had working capital (excluding commodity derivatives) of $11.7 million primarily from cash on hand of $10.0 million, accounts receivable of $22.0 million and prepaid expenses and other current assets of $23.1 million, partially offset by accrued liabilities of $20.9 million, revenues payable of $4.9 million, and accounts payable of $17.6 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 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.
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 September 30, 2026, our future commitments under these agreements were $2.3 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 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.
Current wording
The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated. The cash flows for the nine months ended September 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 $7.3 million and $49.2 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Key drivers of net operating cash flows are commodity prices, production volumes and operating costs. Net cash provided by operating activities was $10.4 million and $62.6 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Production volumes were approximately 6.9 MBoe/d and 18.9 MBoe/d for the nine months ended September 30, 2026 and 2025, respectively. The average realized sales price was $75.09 per Boe and $39.03 per Boe for the nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Net cash provided by operating activities for the nine months ended September 30, 2026 included $25.9 million of cash paid on expired commodity derivative instruments compared to $10.1 million of cash received on expired commodity derivatives for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, we had a net loss on commodity derivative instruments of $71.2 million compared to a net gain on commodity derivative instruments of $14.8 million for the nine months ended September 30, 2025.
Previous 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.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was $56.6 million, of which $79.3 million was used for additions to oil and natural gas properties, $0.9 million for additions to other property and equipment, and $7.7 million for additions to restricted investments, partially offset by $31.3 million of proceeds from the sale of other oil and natural gas properties.