Amplify Energy Corp. (AMPY): BCG Matrix [Dec-2025 Updated]

You're looking at Amplify Energy Corp.'s portfolio right now, and the picture is sharp: the company is clearly channeling its future into the high-return Beta Field Development, which is soaking up 89% of Q3 2025 capital investment and promising IRRs over 100% at $60/bbl. Meanwhile, the stable Bairoil asset keeps the lights on, while management is actively shedding low-growth areas like the Oklahoma and East Texas assets for a total of $220.0 million in divestiture consideration to pay down debt. The real question mark is whether the small Magnify Energy Services unit, which chipped in just $1.1 million in Adjusted EBITDA in Q2 2025, warrants a big investment or a quick sale; let's break down exactly where every part of Amplify Energy Corp. fits in the BCG Matrix as of late 2025.

Background of Amplify Energy Corp. (AMPY)

You're looking at Amplify Energy Corp. (AMPY) right at a major inflection point, as they've been actively reshaping their entire footprint as of late 2025. Honestly, the story right now is all about simplification and focus, driven by a new strategic plan under CEO Dan Furbee.

The core of this strategy involves shedding non-core assets to strengthen the balance sheet and pour resources into higher-upside plays. To that end, Amplify Energy Corp. entered definitive agreements to divest all its interests in the Oklahoma and East Texas assets for a total consideration of $220.0 million. One of these transactions closed in October 2025, with the remaining sales expected to wrap up in the fourth quarter of 2025.

Financially, the third quarter of 2025 showed a production base settling around 19.7 MBoepd. Total oil, natural gas, and NGL revenues before derivatives for that quarter hit approximately $64.2 million. Still, the operational execution was strong enough that Adjusted EBITDA for Q3 2025 actually climbed 7% quarter-over-quarter to $20.3 million.

The company's product mix as of Q3 2025 leaned toward hydrocarbons, coming in at 41% crude oil, 16% NGLs, and 43% natural gas. As of September 30, 2025, Amplify Energy Corp. had $123.0 million drawn on its revolving credit facility, resulting in a Net debt to LTM Adjusted EBITDA ratio of 1.5x.

The focus areas for future investment are clear: the Beta field and the Bairoil asset. Management is excited about the continued success of the drilling program at Beta, which has seen promising initial results from new wells. Furthermore, the company is realizing meaningful cost savings at Bairoil, partly through new Carbon Capture, Utilization & Storage (CCUS) initiatives. Amplify Energy Corp. is an independent oil company whose remaining core operations are primarily situated in federal waters offshore Southern California and the Rockies.

Amplify Energy Corp. (AMPY) - BCG Matrix: Stars

The Beta Field Development in offshore California represents a core Star asset for Amplify Energy Corp., characterized by its high market share potential within a growing segment of the Company's portfolio and significant capital allocation.

The commitment to this asset is clear in the capital deployment figures. For the third quarter of 2025, Amplify Energy Corp. directed approximately 89% of its cash capital investment toward development drilling, recompletions, and facility projects specifically at Beta. This focus underscores management's belief in the asset's high growth trajectory and its ability to generate superior returns, making it a leader in the current business mix.

The economic viability of the recent drilling success is exceptional. New wells, including the C54, are demonstrating outstanding performance metrics. Specifically, the three D-Sand wells completed in the development program are projected to generate an Internal Rate of Return (IRR) greater than 90%, assuming a commodity price of $60/bbl oil. Furthermore, the C54 well alone is projected to have an IRR greater than 100% at current pricing, with an expected payout period of approximately eight months.

This high-return activity is translating directly into production gains. Production at the Beta asset has increased by approximately 40% since the beginning of 2024, even after accounting for the asset's base production decline. This growth is a direct result of the successful development program, which has brought five wells online in the D-Sand formation to date, with an average capital cost of approximately $6.5 million per well.

The strategic plan for Amplify Energy Corp. involves using the liquidity generated from recent asset divestitures-totaling $220.0 million in expected consideration from the Oklahoma and East Texas asset sales-to further fuel this growth engine. The intention is to accelerate the development drilling program at Beta in 2026 to maximize oil-weighted production, which is consistent with the BCG strategy of investing in Stars to maintain market share leadership.

Here is a look at the capital allocation during the period that demonstrates the focus on this Star asset:

The success at Beta is driving the overall portfolio shift for Amplify Energy Corp. You can see the tangible results of this focus:

• Production at Beta increased by approximately 40% since early 2024.
• Five D-Sand wells have been successfully completed with an average capital cost of $6.5 million per well.
• The C08 well achieved an IP30 rate of approximately 550 Bopd.
• The C54 well has cumulative gross production of 90,000 barrels of oil as of early November 2025.
• Amplify Energy Corp. intends to use divestiture proceeds to accelerate drilling at Beta in 2026.

The high growth and high market share position of Beta means Amplify Energy Corp. must continue to fund this asset heavily to ensure it matures into a Cash Cow when the high-growth phase eventually slows. Finance: draft the 2026 capital plan prioritizing Beta acceleration by year-end.

Amplify Energy Corp. (AMPY) - BCG Matrix: Cash Cows

You're looking at the established, reliable engine of Amplify Energy Corp.'s portfolio-the Cash Cows. These are the business units that dominate a mature market segment and consistently throw off more cash than they need to maintain their position. For Amplify Energy Corp., the Bairoil Asset in the Rockies fits this description perfectly.

The Bairoil Asset in Wyoming represents a mature, stable production base. It's not a high-growth area anymore, but its high market share in its niche allows it to generate the consistent cash flow the company relies on. This stability is key, as it funds the riskier Question Marks and supports overall corporate overhead.

The focus here isn't on massive expansion capital, but on efficiency to maximize the cash yield. Amplify Energy Corp. has been actively working to enhance this cash flow. For instance, they have started to realize meaningful cost savings, with an expected run-rate of approximately $10 million per year coming from initiatives like a new CO2 purchase contract and a facility project at the Bairoil CO2 gas plant that reduces electricity usage by about 30%. That's real money kept on the bottom line.

The company is also looking at future cash flow enhancement through new Carbon Capture, Utilization & Storage (CCUS) initiatives, leveraging the asset's large available reservoir pore space and recently obtained certification under the EOR Operations Management Plan. This shows a strategy to 'milk' the gains passively while exploring low-investment upside.

The financial performance of the company as a whole reflects the importance of these steady contributors. For the third quarter of 2025, Amplify Energy Corp. delivered Adjusted EBITDA of $20.3 million. While this number reflects the entire company, the Bairoil asset's stable contribution, bolstered by those cost savings, is a primary driver ensuring that this figure remains robust even as capital is directed elsewhere.

Here's a quick look at the key financial metrics surrounding the company's performance in Q3 2025, which puts the Cash Cow's contribution into context:

The strategic actions taken to support this Cash Cow unit include optimizing its operating expenses and positioning it for potential future value via CCUS. You can see the focus on efficiency in the operational improvements:

• Achieved an average total production of 19.7 MBoepd in Q3 2025.
• Lease Operating Expense per Barrel of Oil Equivalent (LOE/boe) fell 11% quarter-over-quarter to $19.67.
• The company invested approximately 85% of its 2025 capital in the first three quarters of the year, suggesting a shift to supporting growth assets like Beta.
• Amplify Energy Corp. had $123.0 million outstanding under the revolving credit facility as of September 30, 2025.

These Cash Cow assets are what you want to maintain; they provide the necessary financial cushion. Finance: draft 13-week cash view by Friday.

Amplify Energy Corp. (AMPY) - BCG Matrix: Dogs

You're looking at the assets Amplify Energy Corp. has identified as Dogs-units in low growth markets with low market share that the company is actively minimizing. Honestly, these are the parts of the portfolio that tie up capital without offering much return, so the clear action is divestiture, not expensive turn-around plans.

Amplify Energy Corp. is executing a strategy to simplify its portfolio by selling off these non-core assets, using the cash proceeds to strengthen the balance sheet, primarily through debt reduction. This move aligns with the principle that Dogs are prime candidates for divestiture to free up resources for Stars or Cash Cows.

The primary focus for this category involves the planned exit from the Oklahoma and East Texas assets, which together represent a significant cash event for Amplify Energy Corp.

Here's the quick math on the combined divestiture consideration for these two non-core areas:

The characteristics of the East Texas assets clearly place them in the Dog quadrant, as they were gas-weighted and had low relative market share in a mature area. For instance, the Q2 2025 production from the East Texas assets was approximately 6,400 BOEPD. The product mix for these assets in 2024 was only about 5% oil, 27% NGLs, and 68% natural gas. This low oil weighting contrasts with the company's stated focus on becoming more oil-weighted.

The general characteristics that define these assets as Dogs, which should be avoided and minimized, include:

• Low growth markets and low market share.
• Frequently break even, neither earning nor consuming much cash.
• Prime candidates for divestiture.
• Expensive turn-around plans usually do not help.

Furthermore, the divestiture of the Eagle Ford Assets is already complete, removing another smaller, non-strategic part of the portfolio. Amplify Energy Corp. completed the sale of its non-operated Eagle Ford assets for $23 million. This transaction closed on July 1, 2025, with an effective date of June 15, 2025.

Amplify Energy Corp. (AMPY) - BCG Matrix: Question Marks

You're looking at the business units within Amplify Energy Corp. (AMPY) that fit the Question Marks quadrant: high potential growth markets but currently holding a low market share, meaning they consume cash without delivering substantial returns right now. These are the areas where a clear, decisive capital allocation choice must be made.

Magnify Energy Services represents a wholly-owned subsidiary operating in an energy services line that is not the core Exploration & Production (E&P) focus of Amplify Energy Corp. This unit generated an Adjusted EBITDA of only $1.1 million in the second quarter of 2025, which clearly signals a low current market share within its service sector. The strategic imperative here is to decide whether to invest heavily to scale this unit rapidly or to divest it entirely to maintain a sharp focus on the E&P assets like Beta and Bairoil.

The portfolio of remaining non-core, non-operated development projects outside of the primary focus areas of Beta and Bairoil also falls into this category, as Amplify Energy Corp. has been actively streamlining its footprint. You can see the shift in capital allocation reflecting this strategy.

The capital deployment in the second quarter of 2025 showed that approximately 25% of the cash went toward non-operated development projects in East Texas and the Eagle Ford. By the third quarter of 2025, the allocation to non-operated projects in East Texas had dropped to approximately 6% of capital investment, signaling the transition away from these assets.

The path forward for these Question Marks requires a definitive action, which Amplify Energy Corp. appears to be executing through divestitures:

• Divested non-operated assets in the Eagle Ford for $23 million.
• Entered agreements to sell all interests in Oklahoma and East Texas for a total consideration of $220.0 million.
• One of the Asset Transactions closed in October of 2025, with the remaining two expected in the fourth quarter of 2025.
• The intended use of the proceeds is to pay down outstanding debt and accelerate development drilling at Beta.

The initial 2025 projection for Magnify Energy Services was to generate approximately $5 million in Adjusted EBITDA for the full year, with an annualized run rate of $6 million by year-end 2025. Still, the Q2 2025 result of $1.1 million shows the unit is not yet a major cash contributor.

Finance: draft 13-week cash view by Friday.