Amplify Energy Corp. 10-Q

ITEM 1. FINANCIAL STATEMENTS. AMPLIFY ENERGY CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except outstanding shares) ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ 2025 ​ 2024 ASSETS ​ ​ Current assets: ​ ​ Cash and cash equivalents ​ $ — ​ $ — Accounts receivable, net (see Note 13) ​ 34,692 ​ 39,713 Short-term derivative instruments ​ 9,909 ​ 6,385 Prepaid expenses and other current assets ​ 25,412 ​ 25,679 Total current assets ​ 70,013 ​ 71,777 Property and equipment, at cost: ​ ​ Oil and natural gas properties, successful efforts method ​ 886,441 ​ 942,981 Support equipment and facilities ​ 153,825 ​ 150,511 Other ​ 12,126 ​ 11,478 Accumulated depreciation, depletion and amortization ​ ( 668,463 ) ​ ( 718,752 ) Property and equipment, net ​ 383,929 ​ 386,218 Long-term derivative instruments ​ — ​ 233 Restricted investments ​ 35,093 ​ 29,993 Operating lease - long term right-of-use asset ​ 4,136 ​ 4,540 Deferred tax asset ​ ​ 251,718 ​ ​ 251,600 Assets held for sale - non-current assets ​ ​ 24,333 ​ ​ — Other long-term assets ​ 2,085 ​ 2,715 Total assets ​ $ 771,307 ​ $ 747,076 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND EQUITY ​ ​ Current liabilities: ​ ​ Accounts payable ​ $ 30,303 ​ $ 13,231 Revenues payable ​ 11,736 ​ 11,494 Accrued liabilities (see Note 13) ​ 41,215 ​ 43,413 Total current liabilities ​ 83,254 ​ 68,138 Long-term debt (see Note 8) ​ 130,000 ​ 127,000 Asset retirement obligations ​ 131,464 ​ 129,700 Long-term derivative instruments ​ 730 ​ — Operating lease liability ​ 3,268 ​ 3,683 Assets held for sale - non-current liabilities ​ ​ 1,333 ​ ​ — Other long-term liabilities ​ 9,953 ​ 9,643 Total liabilities ​ 360,002 ​ 338,164 Commitments and contingencies (see Note 16) ​ ​ Stockholders' equity (deficit): ​ ​ Preferred stock, $ 0.01 par value: 50,000,000 shares authorized; no shares issued and outstanding at June 30, 2025 and December 31, 2024 ​ — ​ — Common stock, $ 0.01 par value: 250,000,000 shares authorized; 40,396,165 and 39,795,138 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively ​ 404 ​ 399 Additional paid-in capital ​ 441,846 ​ 439,981 Accumulated deficit ​ ( 30,945 ) ​ ( 31,468 ) Total stockholders' equity (deficit) ​ 411,305 ​ 408,912 Total liabilities and equity ​ $ 771,307 ​ $ 747,076 ​ See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. ​ 8 Table of Contents AMPLIFY ENERGY CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2025 2024 ​ 2025 2024 Revenues: ​ ​ ​ ​ ​ Oil and natural gas sales ​ $ 66,774 ​ $ 72,346 ​ $ 137,115 ​ $ 147,668 Other revenues ​ 1,587 ​ 7,157 ​ 3,296 ​ 8,134 Total revenues ​ 68,361 ​ 79,503 ​ 140,411 ​ 155,802 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and expenses: ​ ​ ​ ​ Lease operating expense ​ 38,622 ​ ​ 36,311 ​ 76,039 ​ 74,595 Gathering, processing and transportation ​ 4,723 ​ ​ 4,895 ​ 9,009 ​ 9,669 Taxes other than income ​ 4,299 ​ ​ 4,631 ​ 8,683 ​ 9,542 Depreciation, depletion and amortization ​ 9,765 ​ ​ 7,827 ​ 18,259 ​ 16,066 Impairment expense ​ 8,448 ​ ​ — ​ 8,448 ​ — General and administrative expense ​ 11,197 ​ ​ 8,358 ​ 22,012 ​ 18,158 Accretion of asset retirement obligations ​ 2,210 ​ ​ 2,096 ​ 4,393 ​ 4,157 Loss (gain) on commodity derivative instruments ​ ( 22,162 ) ​ ​ 1,225 ​ ( 7,845 ) ​ 17,789 Pipeline incident loss ​ ​ 195 ​ ​ 500 ​ ​ 591 ​ ​ 1,207 (Gain) loss on sale of properties ​ ​ ( 1,545 ) ​ ​ — ​ ​ ( 7,796 ) ​ ​ — Other, net ​ 50 ​ ​ 108 ​ 53 ​ 149 Total costs and expenses ​ 55,802 ​ 65,951 ​ 131,846 ​ 151,332 Operating income (loss) ​ 12,559 ​ 13,552 ​ 8,565 ​ 4,470 Other income (expense): ​ ​ ​ ​ Interest expense, net ​ ( 3,594 ) ​ ​ ( 3,632 ) ​ ( 7,113 ) ​ ( 7,159 ) Other income (expense) ​ ​ ( 666 ) ​ ​ ( 109 ) ​ ​ ( 551 ) ​ ​ ( 204 ) Total other income (expense) ​ ( 4,260 ) ​ ( 3,741 ) ​ ( 7,664 ) ​ ( 7,363 ) Income (loss) before income taxes ​ 8,299 ​ 9,811 ​ 901 ​ ( 2,893 ) Income tax (expense) benefit - current ​ ( 495 ) ​ ​ ( 557 ) ​ ( 496 ) ​ ( 1,952 ) Income tax (expense) benefit - deferred ​ ( 1,420 ) ​ ​ ( 2,135 ) ​ 118 ​ 2,568 Net income (loss) ​ $ 6,384 ​ $ 7,119 ​ $ 523 ​ $ ( 2,277 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allocation of net income (loss) to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders ​ $ 6,039 ​ $ 6,773 ​ $ 496 ​ $ ( 2,277 ) Net income (loss) allocated to participating securities ​ 345 ​ 346 ​ 27 ​ — Net income (loss) available to Amplify Energy Corp. ​ $ 6,384 ​ $ 7,119 ​ $ 523 ​ $ ( 2,277 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share: (See Note 10) ​ ​ ​ ​ Basic and diluted earnings (loss) per share ​ $ 0.15 ​ $ 0.17 ​ $ 0.01 ​ $ ( 0.06 ) Weighted average common shares outstanding: ​ ​ ​ ​ Basic and diluted ​ 40,349 ​ ​ 39,629 ​ 40,269 ​ 39,519 ​ See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. ​ 9 Table of Contents AMPLIFY ENERGY CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ June 30, ​ 2025 2024 Cash flows from operating activities: ​ ​ Net income (loss) ​ $ 523 ​ $ ( 2,277 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: ​ ​ ​ ​ Depreciation, depletion and amortization ​ 18,259 ​ 16,066 Impairment expense ​ 8,448 ​ — Loss (gain) on derivative instruments ​ ( 7,845 ) ​ 17,789 Cash settlements (paid) received on expired derivative instruments ​ 5,284 ​ 7,983 Deferred income tax expense (benefit) ​ ​ ( 118 ) ​ ​ ( 2,568 ) Accretion of asset retirement obligations ​ 4,393 ​ 4,157 Share-based compensation (see Note 11) ​ 3,880 ​ 3,298 Settlement of asset retirement obligations ​ ( 525 ) ​ ( 416 ) Amortization and write-off of deferred financing costs ​ 630 ​ 608 Bad debt expense ​ 53 ​ 26 Changes in operating assets and liabilities: ​ ​ Accounts receivable ​ 4,968 ​ 2,763 Prepaid expenses and other assets ​ 2,116 ​ ( 2,784 ) Payables and accrued liabilities ​ 9,124 ​ ( 21,544 ) Net cash provided by operating activities ​ 49,190 ​ 23,101 Cash flows from investing activities: ​ ​ Additions to oil and gas properties ​ ( 52,227 ) ​ ( 38,616 ) Additions to other property and equipment ​ ( 649 ) ​ ( 992 ) Additions to restricted investments ​ ( 5,100 ) ​ ( 4,969 ) Proceeds from the sale of oil and natural gas properties ​ ​ 7,796 ​ ​ — Net cash used in investing activities ​ ( 50,180 ) ​ ( 44,577 ) Cash flows from financing activities: ​ ​ Advances on Revolving Credit Facility ​ 74,000 ​ 53,000 Payments on Revolving Credit Facility ​ ( 71,000 ) ​ ( 50,000 ) Shares withheld for taxes ​ ( 2,010 ) ​ ( 1,768 ) Net cash used in financing activities ​ 990 ​ 1,232 Net change in cash and cash equivalents ​ — ​ ( 20,244 ) Cash and cash equivalents, beginning of period ​ — ​ 20,746 Cash and cash equivalents, end of period ​ $ — ​ $ 502 ​ See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. ​ 10 Table of Contents AMPLIFY ENERGY CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' Equity ​ ​ ​ ​ ​ Additional ​ Accumulated ​ ​ ​ ​ ​ Common ​ Paid-in ​ Earnings ​ ​ ​ ​ Stock Capital (Deficit) Total Balance at December 31, 2024 $ 399 ​ $ 439,981 ​ $ ( 31,468 ) ​ $ 408,912 Net income (loss) ​ — ​ — ​ ( 5,861 ) ​ ( 5,861 ) Share-based compensation expense ​ — ​ 1,890 ​ — ​ 1,890 Shares withheld for taxes ​ — ​ ( 2,004 ) ​ — ​ ( 2,004 ) Other ​ 5 ​ ( 5 ) ​ — ​ — Balance at March 31, 2025 ​ ​ 404 ​ ​ 439,862 ​ ​ ( 37,329 ) ​ ​ 402,937 Net income (loss) ​ ​ — ​ ​ — ​ ​ 6,384 ​ ​ 6,384 Share-based compensation expense ​ ​ — ​ ​ 1,990 ​ ​ — ​ ​ 1,990 Shares withheld for taxes ​ ​ — ​ ​ ( 6 ) ​ ​ — ​ ​ ( 6 ) Other ​ ​ — ​ ​ — ​ ​ — ​ ​ — Balance at June 30, 2025 $ 404 $ 441,846 $ ( 30,945 ) $ 411,305 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' Equity (Deficit) ​ ​ ​ ​ ​ Additional ​ Accumulated ​ ​ ​ ​ Common ​ Paid-in ​ Earnings ​ ​ ​ ​ Stock Capital (Deficit) Total Balance at December 31, 2023 $ 393 $ 435,095 $ ( 44,452 ) $ 391,036 Net income (loss) ​ — ​ — ​ ( 9,396 ) ​ ( 9,396 ) Share-based compensation expense ​ — ​ 1,120 ​ — ​ 1,120 Shares withheld for taxes ​ — ​ ( 1,745 ) ​ — ​ ( 1,745 ) Other ​ 5 ​ ( 5 ) ​ — ​ — Balance at March 31, 2024 ​ ​ 398 ​ ​ 434,465 ​ ​ ( 53,848 ) ​ ​ 381,015 Net income (loss) ​ ​ — ​ — ​ 7,119 ​ 7,119 Share-based compensation expense ​ ​ — ​ 2,140 ​ 38 ​ 2,178 Shares withheld for taxes ​ ​ — ​ ( 23 ) ​ — ​ ( 23 ) Balance at June 30, 2024 ​ $ 398 ​ $ 436,582 ​ $ ( 46,691 ) ​ $ 390,289 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements. ​ ​ 11 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1. Organization and Basis of Presentation General Amplify Energy Corp. (“Amplify Energy,” “Amplify,” “it” or the “Company”) is a publicly traded Delaware corporation whose common stock, par value $ 0.01 per share (“Common Stock”), is listed on the NYSE under the symbol “AMPY.” The Company operates in one reportable segment that is engaged in the acquisition, development, exploitation and production of oil and natural gas properties. The Company’s management evaluates performance based on one reportable business segment as there are not different economic environments within the operation of the Company’s oil and natural gas properties. The Company’s assets have historically consisted primarily of producing oil and natural gas properties located in Oklahoma, the Rockies (“Bairoil”), federal waters offshore Southern California (“Beta”), East Texas/North Louisiana and the Eagle Ford (non-op). Most of the Company’s oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. Basis of Presentation The Company’s accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the Company’s opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Material intercompany transactions and balances have been eliminated. The results reported in these Unaudited Condensed Consolidated Financial Statements are not necessarily indicative of results that may be expected for the entire year. Furthermore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Accordingly, the accompanying Unaudited Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Company’s annual financial statements included in its 2024 Form 10-K. Use of Estimates The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves, fair value estimates, revenue recognition, and contingencies and insurance accounting. Segments Operating segments are defined as components of an enterprise that engage in activities from which it may earn revenues and incur expenses for which separate operational financial information is available and is regularly evaluated by the chief operating decision maker (“CODM”). The Company’s Chief Executive Officer has been determined to be the Company’s CODM and as such, he allocates resources and assesses performance based upon consolidated financial information. See additional information in Note 15. Note 2. Summary of Significant Accounting Policies There have been no changes to the Company’s significant accounting policies as described in the Company’s annual financial statements included in its 2024 Form 10-K. 12 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS New Accounting Pronouncements Improvements to Income Tax Disclosure. In December 2023, the Federal Accounting Standards Board (the “FASB”) issued an accounting standard update which requires that companies disclose the nature and magnitude of factors contributing to the difference between their effective tax rate and the statutory tax rate. The update will require companies to disclose specific categories in the rate reconciliation and provide additional information about items that meet a certain quantitative threshold. The guidance is effective for annual periods beginning after December 15, 2024. The Company plans to adopt the guidance during fiscal year 2025, with the first disclosure to be reflected in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company is currently evaluating the impact of this guidance on the Company’s financial disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. Income Statement –Expense Disaggregation Disclosures. In November 2024, the FASB issued an accounting standard update which requires disaggregated disclosures of income statement expenses for public business entities. The guidance will require companies to disclose disaggregated information about specific natural expense categories underlying certain income statement expense line items that are considered relevant because they include one or more of the five natural expense categories, as applicable: (1) purchase of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization and (5) depreciation, depletion and amortization (“DD&A”) recognized as part of oil and gas producing activities or other depletion expenses. The new guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 31, 2027. The Company is currently evaluating the impact of this guidance on the Company’s financial disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Note 3. Revenue Revenue from Contracts with Customers Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when the reporting organization satisfies a performance obligation. The Company has determined that its contracts for the sale of crude oil, unprocessed natural gas, residue gas and NGLs contain monthly performance obligations to deliver product at locations specified in the contract. Control is transferred at the delivery location, at which point the performance obligation has been satisfied and revenue is recognized. Fees included in the contract that are incurred prior to control transfer are classified as gathering, processing and transportation and fees incurred after control transfers are included as a reduction to the transaction price. The transaction price at which revenue is recognized consists entirely of variable consideration based on quoted market prices less various fees and the quantity of volumes delivered. 13 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Disaggregation of Revenue The Company has identified three material revenue streams in its business: oil, natural gas and NGLs. The following table presents the Company’s revenues disaggregated by revenue stream. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ June 30, ​ June 30, ​ 2025 2024 2025 2024 ​ (In thousands) Revenues ​ ​ ​ ​ ​ Oil ​ $ 49,705 ​ $ 57,789 ​ $ 99,686 ​ $ 115,210 NGLs ​ ​ 5,648 ​ ​ 6,565 ​ ​ 11,806 ​ ​ 14,091 Natural gas ​ ​ 11,421 ​ ​ 7,992 ​ ​ 25,623 ​ ​ 18,367 Oil and natural gas sales ​ $ 66,774 ​ $ 72,346 ​ $ 137,115 ​ $ 147,668 ​ Contract Balances Under the Company’s sales contracts, the Company invoices customers once its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to the Company’s revenue contracts with customers were $ 28.8 million at June 30, 2025 and $ 28.5 million at December 31, 2024. Note 4. Acquisitions and Divestitures Assets Held for Sale On June 30, 2025, the Company approved the plan to sell its non-operated Eagle Ford assets. On July 1, 2025, OLLC entered into a definitive agreement (the “Purchase and Sale Agreement”) to divest its non-core assets in the Eagle Ford for a contract price of $ 23.0 million, subject to certain post-closing adjustments (the “Asset Sale”). The assets held for sale are recorded at the lower of their carrying value or fair value less cost to sell. The Company recognized an impairment expense of approximately $ 8.4 million for both the three and six months ended June 30, 2025 in connection with the planned divestiture. The disposition did not qualify as discontinued operations. The major categories of assets and liabilities classified as held for sale were: ​ ​ ​ ​ ​ ​ June 30, 2025 ​ (In thousands) Assets classified as held for sale ​ ​ ​ Property and equipment, at cost: ​ ​ ​ Oil and natural gas properties, successful efforts method ​ $ 101,330 Accumulated depreciation, depletion, and impairment ​ ​ ( 76,997 ) Property and equipment, net ​ ​ 24,333 Total assets classified as held for sale ​ $ 24,333 ​ ​ ​ ​ Liabilities associated with assets held for sale ​ ​ ​ Asset retirement obligations ​ $ ( 1,333 ) Total liabilities associated with assets held for sale ​ $ ( 1,333 ) ​ 14 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS East Texas Haynesville Monetization On January 15, 2025, the Company sold 90 % of its interest in certain units with rights in the Haynesville basin in Harrison County, Texas and purchased a 10 % interest in adjacent acreage, generating $ 6.3 million in net proceeds from the transactions. These transactions also established an area of mutual interest with the counterparty covering 10,000 gross acres. Amplify retained a 10 % working interest in the units it divested and purchased a 10 % working interest in the counterparty’s acreage. The net proceeds received from the purchase and sale transactions of $ 6.3 million is classified as a (gain) loss on sale of properties in our Unaudited Consolidated Statement of Operations. On May 1, 2025, the Company sold 90 % of its interest in three additional units with rights in the Haynesville basin in Panola and Shelby Counties, Texas to a third party. Amplify retained a 10 % working interest in the units it divested. The net proceeds from the transaction of $ 1.5 million are classified as a (gain) loss on sale of properties in our Unaudited Consolidated Statement of Operations. Contemplated Merger with Juniper Capital On January 14, 2025, the Company entered into an Agreement and Plan of Merger, as subsequently amended (the “Merger Agreement”) with Amplify DJ Operating LLC, a Delaware limited liability company and indirect wholly owned subsidiary of the Company (“First Merger Sub”), Amplify PRB Operating LLC, a Delaware limited liability company and indirect wholly owned subsidiary of Amplify (“Second Merger Sub”), North Peak Oil & Gas, LLC, a Delaware limited liability company (“NPOG”), Century Oil and Gas Sub-Holdings, LLC, a Delaware limited liability company (“COG” and, together with NPOG, the “Acquired Companies”), and, solely for the limited purposes set forth in the Merger Agreement, Juniper Capital Advisors, L.P. (“Juniper Capital”) and the Specified Company Entities set forth on Annex A thereto, pursuant to which, at the effective time of the Contemplated Mergers (as defined below) (the “Effective Time”), it was contemplated that (i) NPOG would merge with and into First Merger Sub, with NPOG surviving the merger as an indirect, wholly owned subsidiary of the Company and (ii) COG would merge with and into Second Merger Sub, with COG surviving the merger as an indirect, wholly owned subsidiary of the Company, in each case, subject to the terms and conditions of the Merger Agreement (clauses (i) and (ii), together, the “Contemplated Mergers”). On April 25, 2025, pursuant to Section 8.1(a) of the Merger Agreement, the Company and the Acquired Companies entered into a mutual termination agreement (the “Termination Agreement”) to terminate the Merger Agreement (the “Termination”), effective immediately. As a result of the Termination Agreement, the Merger Agreement is of no further force and effect. Acquisition and Divesture Expenses Acquisition and divestiture related expenses for third-party transactions are included in general and administrative expense in the accompanying Unaudited Condensed Statement of Consolidated Operations for the periods indicated below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended June 30, ​ June 30, 2025 ​ 2024 ​ 2025 ​ 2024 $ 2,346 ​ $ 9 ​ $ 3,975 ​ $ 23 ​ ​ ​ Note 5. Fair Value Measurements of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All the derivative instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets were considered Level 2. 15 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The carrying values of accounts receivables, accounts payables (including accrued liabilities), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying Unaudited Condensed Consolidated Balance Sheets approximated fair value at June 30, 2025 and December 31, 2024. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair market values of the derivative financial instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 were based on estimated forward commodity prices. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables present the gross derivative assets and liabilities that are measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 for each of the fair value hierarchy levels: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at June 30, 2025 ​ ​ ​ ​ ​ ​ Significant ​ ​ ​ ​ ​ Quoted Prices in ​ Significant Other ​ Unobservable ​ ​ ​ ​ ​ Active Market ​ Observable Inputs ​ Inputs ​ ​ ​ ​ (Level 1) (Level 2) (Level 3) Fair Value ​ ​ (In thousands) Assets: ​ ​ ​ ​ Commodity derivatives ​ $ — ​ $ 24,694 ​ $ — ​ $ 24,694 Interest rate derivatives ​ — ​ — ​ — ​ — Total assets ​ $ — ​ $ 24,694 ​ $ — ​ $ 24,694 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ Commodity derivatives ​ $ — ​ $ 15,515 ​ $ — ​ $ 15,515 Interest rate derivatives ​ — ​ — ​ — ​ — Total liabilities ​ $ — ​ $ 15,515 ​ $ — ​ $ 15,515 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2024 ​ ​ ​ ​ ​ ​ Significant ​ ​ ​ ​ ​ Quoted Prices in ​ Significant Other ​ Unobservable ​ ​ ​ ​ ​ Active Market ​ Observable Inputs ​ Inputs ​ ​ ​ ​ (Level 1) (Level 2) (Level 3) Fair Value ​ ​ (In thousands) Assets: ​ ​ ​ ​ ​ ​ ​ ​ Commodity derivatives ​ $ — ​ $ 14,317 ​ $ — ​ $ 14,317 Interest rate derivatives ​ — ​ — ​ — ​ — Total assets ​ $ — ​ $ 14,317 ​ $ — ​ $ 14,317 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ Commodity derivatives ​ $ — ​ $ 7,699 ​ $ — ​ $ 7,699 Interest rate derivatives ​ — ​ — ​ — ​ — Total liabilities ​ $ — ​ $ 7,699 ​ $ — ​ $ 7,699 ​ See Note 6 for additional information regarding the Company’s derivative instruments. 16 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are reported at fair value on a nonrecurring basis, as reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets. The following methods and assumptions are used to estimate the fair values: ● The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding factors such as the existence of a legal obligation for an ARO, amounts and timing of settlements, the credit-adjusted risk-free rate and inflation rates. The initial fair value estimates are based on unobservable market data and are classified within Level 3 of the fair value hierarchy. See Note 7 for a summary of changes in AROs. ● Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The Company uses an income approach based on the discounted cash flow method, whereby the present value of expected future net cash flows is discounted by applying an appropriate discount rate, for purposes of placing a fair value on the assets. The future cash flows are based on management’s estimates for the future. The unobservable inputs used to determine fair value include, but are not limited to, estimates of proved reserves, estimates of probable reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties (some of which are Level 3 inputs within the fair value hierarchy). ● The Company recorded an impairment expense of $ 8.4 million for both the three and six months ended June 30, 2025 to reduce the net book value of our non-operated Eagle Ford assets to fair value less costs to sell. See additional information regarding Asset Sale in Note 4 and Note 18. No impairment expense was recorded on proved oil and natural gas properties during the three and six months ended June 30, 2024. Note 6. Risk Management and Derivative Instruments Derivative instruments are utilized to manage exposure to commodity price and interest rate fluctuations and to achieve a more predictable cash flow in connection with natural gas and oil sales and borrowing related activities. These instruments limit exposure to declines in prices but also limit the benefits that would be realized if prices increase. Certain inherent business risks are associated with commodity derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is the Company’s policy to enter into derivative contracts only with creditworthy counterparties, which are generally financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under the Company’s current credit agreements are counterparties to its derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with creditworthy counterparties that are generally large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. The Company has also entered into International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of its counterparties. The terms of the ISDA Agreements provide the Company and each of its counterparties with rights of set-off upon the occurrence of defined acts of default by either the Company or its counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. As a result, had certain counterparties failed completely to perform according to the terms of the existing contracts, the Company would have the right to offset $ 9.9 million against amounts outstanding under the Revolving Credit Facility at June 30, 2025. See Note 8 for additional information regarding the Company’s Revolving Credit Facility. 17 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Commodity Derivatives The Company may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options and costless collars) to manage exposure to commodity price volatility. The Company recognizes all derivative instruments at fair value. The Company enters into natural gas derivative contracts that are indexed to NYMEX-Henry Hub. The Company also enters into oil derivative contracts indexed to NYMEX-WTI. At June 30, 2025, the Company had the following open commodity positions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ 2026 ​ 2027 2028 Natural Gas Derivative Contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed price swap contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ Average monthly volume (MMBtu) ​ ​ 560,000 ​ ​ 515,000 ​ ​ 197,500 ​ 20,000 Weighted-average fixed price ​ $ 3.75 ​ $ 3.80 ​ $ 3.96 ​ $ 3.86 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collar contracts: ​ ​ ​ ​ ​ ​ ​ ​ Two-way collars ​ ​ ​ ​ ​ ​ ​ ​ Average monthly volume (MMBtu) ​ 500,000 ​ 517,500 ​ 640,000 ​ 67,500 Weighted-average floor price ​ $ 3.50 ​ $ 3.58 ​ $ 3.54 ​ $ 3.50 Weighted-average ceiling price ​ $ 3.90 ​ $ 4.11 ​ $ 4.31 ​ $ 4.52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Crude Oil Derivative Contracts: ​ ​ ​ ​ ​ ​ ​ ​ Fixed price swap contracts: ​ ​ ​ ​ ​ ​ ​ ​ Average monthly volume (Bbls) ​ 170,000 ​ 146,500 ​ 45,667 ​ — Weighted-average fixed price ​ $ 70.32 ​ $ 65.77 ​ $ 62.57 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collar contracts: ​ ​ ​ ​ Two-way collars ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average monthly volume (Bbls) ​ ​ 17,000 ​ ​ — ​ ​ — ​ ​ — Weighted-average floor price ​ $ 70.00 ​ $ — ​ $ — ​ $ — Weighted-average ceiling price ​ $ 80.20 ​ $ — ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 18 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Balance Sheet Presentation The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at June 30, 2025 and December 31, 2024. There was no cash collateral received or pledged associated with the Company’s derivative instruments since most of its counterparties, or certain of its affiliates, to its derivative contracts are lenders under its Revolving Credit Facility. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Liability Asset Liability ​ ​ ​ ​ Derivatives ​ Derivatives ​ Derivatives ​ Derivatives ​ ​ ​ ​ June 30, ​ June 30, ​ December 31, ​ December 31, Type Balance Sheet Location 2025 2025 2024 2024 ​ ​ ​ ​ (In thousands) Commodity contracts Short-term derivative instruments ​ $ 15,397 ​ $ 5,488 ​ $ 9,499 ​ $ 3,114 Interest rate swaps Short-term derivative instruments ​ — ​ — ​ — ​ — Gross fair value ​ ​ 15,397 ​ 5,488 ​ 9,499 ​ 3,114 Netting arrangements ​ ​ ( 5,488 ) ​ ( 5,488 ) ​ ( 3,114 ) ​ ( 3,114 ) Net recorded fair value Short-term derivative instruments ​ $ 9,909 ​ $ — ​ $ 6,385 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commodity contracts Long-term derivative instruments ​ $ 9,297 ​ $ 10,027 ​ $ 4,818 ​ $ 4,585 Interest rate swaps Long-term derivative instruments ​ — ​ — ​ — ​ — Gross fair value ​ ​ 9,297 ​ 10,027 ​ 4,818 ​ 4,585 Netting arrangements ​ ​ ( 9,297 ) ​ ( 9,297 ) ​ ( 4,585 ) ​ ( 4,585 ) Net recorded fair value Long-term derivative instruments ​ $ — ​ $ 730 ​ $ 233 ​ $ — ​ Loss (Gain) on Derivative Instruments The Company does not designate derivative instruments as hedging instruments for accounting and financial reporting purposes. Accordingly, all gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying Unaudited Condensed Consolidated Statements of Operations. The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ Statements of June 30, June 30, ​ Operations Location ​ 2025 2024 ​ 2025 2024 Commodity derivative contracts Loss (gain) on commodity derivatives ​ $ ( 22,162 ) ​ $ 1,225 ​ $ ( 7,845 ) ​ $ 17,789 ​ ​ Note 7. Asset Retirement Obligations The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the six months ended June 30, 2025 (in thousands): ​ ​ ​ ​ ​ Asset retirement obligations at beginning of period ​ $ 131,077 Liabilities added from acquisition or drilling ​ 7 Liabilities settled ​ ( 525 ) Liabilities removed upon sale of wells ​ ( 797 ) Accretion expense ​ 4,393 Revision of estimates ​ 19 Asset retirement obligation at end of period ​ 134,174 Less: Current portion ​ 1,377 Less: Long-term portion - assets held for sale ​ ​ 1,333 Asset retirement obligations - long-term portion ​ $ 131,464 ​ ​ 19 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 8. Long-Term Debt The following table presents the Company’s consolidated debt obligations at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Revolving Credit Facility (1) ​ $ 130,000 ​ $ 127,000 Total long-term debt ​ $ 130,000 ​ $ 127,000 (1) The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. Amended and Restated Credit Agreement On July 31, 2023, OLLC and Amplify Acquisitionco LLC (“Acquisitionco”), as the direct parent of OLLC and wholly owned subsidiary of the Company, entered into the Amended and Restated Credit Agreement, providing for a senior secured reserve-based revolving credit facility. The Revolving Credit Facility is guaranteed by the Company and all of its material subsidiaries and secured by substantially all of its assets. The Revolving Credit Facility matures on July 31, 2027. KeyBank National Association is the administrative agent. The aggregate principal amount of loans outstanding under the Revolving Credit Facility as of June 30, 2025, was $ 130.0 million. As of June 30, 2025, the borrowing base under the facility was $ 145.0 million with elected commitments of $ 145.0 million. The Revolving Credit Facility borrowing base is subject to redetermination on at least a semi-annual basis, primarily based on a reserve engineering report. Certain key terms and conditions under the Revolving Credit Facility include (but are not limited to): ● A maturity date of July 31, 2027; ● The loans shall bear interest at a rate per annum equal to (i) adjusted SOFR or (ii) an adjusted base rate, plus an applicable margin based on a utilization ratio of the lesser of the borrowing base and the aggregate commitments. The applicable margin ranges from 2.00 % to 3.00 % for adjusted base rate borrowings, and 3.00 % to 4.00 % for adjusted SOFR borrowings; ● The unused commitments under the Revolving Credit Facility will accrue a commitment fee of 0.50 % , payable quarterly in arrears; ● Certain financial covenants, including the maintenance of (i) a net debt leverage ratio not to exceed 3.00 to 1.00, determined as of the last day of each fiscal quarter for the four fiscal-quarter period then ending and (ii) a current ratio of not less than 1.00 to 1.00, determined as of the last day of each fiscal quarter; ● Certain events of default, including, without limitation: non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; judgments; change of control; and voluntary and involuntary bankruptcy; and ● Initial minimum hedging requirements covering 75 % of the reasonably projected monthly production of hydrocarbons from proved developed producing reserves for the 24-month period following the effective date of the Revolving Credit Facility (the “First Period”) and (ii) 50 % for the 12-month period immediately following the First Period. 20 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS On May 29, 2025, the Company completed the spring redetermination which affirmed the borrowing base at $ 145.0 million. The next regularly schedule borrowing base redetermination is expected to occur in the fourth quarter of 2025. As noted above, the Company is required to maintain a minimum current ratio of 1.00 to 1.00, which is measured on the last day of each quarter. On June 30, 2025, the Company’s current ratio was 0.90 to 1.00. On July 31, 2025, the Company received a letter agreement from its lenders waiving any default or event of default as a result of such noncompliance related to the minimum current ratio requirement for the quarter ended June 30, 2025. As a result, the Company was in compliance with all financial covenants as of June 30, 2025. Subsequent Event . On July 2, 2025, subsequent to the Asset Sale, the Company’s borrowing base was reduced to $ 135.0 million. Weighted-Average Interest Rates The following table presents the weighted-average interest rates paid, excluding commitment fees, on the Company’s consolidated variable-rate debt obligations for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ ​ June 30, ​ June 30, ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ Revolving Credit Facility ​ 8.40 % 9.35 % 8.43 % 9.37 % ​ Letters of Credit At June 30, 2025, the Company had no letters of credit outstanding. Unamortized Deferred Financing Costs Unamortized deferred financing costs associated with the Company’s Revolving Credit Facility were $ 2.6 million at June 30, 2025. Note 9. Equity Common Stock The Company’s authorized capital stock includes 250,000,000 shares of Common Stock. The following is a summary of the changes in the Company’s Common Stock issued for the six months ended June 30, 2025: ​ ​ ​ ​ ​ Common Stock Balance, December 31, 2024 39,795,138 Issuance of Common Stock — Restricted stock units vested 917,521 Shares withheld for taxes (1) ​ ( 316,494 ) Balance, June 30, 2025 40,396,165 (1) Represents the net settlement on vesting of restricted stock to satisfy tax withholding requirements. ​ 21 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 10. Earnings (Loss) per Share The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Net income (loss) ​ $ 6,384 ​ $ 7,119 ​ $ 523 ​ $ ( 2,277 ) Less: Net income allocated to participating securities ​ 345 ​ 346 ​ 27 ​ — Basic and diluted earnings available to common stockholders ​ $ 6,039 ​ $ 6,773 ​ $ 496 ​ $ ( 2,277 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common shares: ​ ​ ​ ​ Common shares outstanding — basic ​ 40,349 ​ 39,629 ​ 40,269 ​ 39,519 Dilutive effect of potential common shares ​ — ​ — ​ — ​ — Common shares outstanding — diluted ​ 40,349 ​ 39,629 ​ 40,269 ​ 39,519 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings (loss) per share: ​ ​ ​ ​ Basic ​ $ 0.15 ​ $ 0.17 ​ $ 0.01 ​ $ ( 0.06 ) Diluted ​ $ 0.15 ​ $ 0.17 ​ $ 0.01 ​ $ ( 0.06 ) ​ ​ Note 11. Long-Term Incentive Plans On May 15, 2024, the Company’s shareholders approved the Amplify Energy Corp. 2024 Equity Incentive Plan (the “2024 EIP”), which had previously been approved by the board of directors of the Company. No further awards will be granted under the prior Legacy Equity Incentive Plan (“EIP,” and together with the 2024 EIP, the “EIP Plans”). The 2024 EIP provides for awards that can be granted in the form of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance awards, stock awards and other incentive awards. To the extent that an award, other than stock options or stock appreciation rights, under the 2024 EIP has expired or been forfeited or canceled for any reason without having been exercised in full, the unexercised award would then be available again for future grants under the 2024 EIP. The 2024 EIP is administered by the board of directors of the Company. Restricted Stock Units Restricted Stock Units with Service Vesting Condition Restricted stock units with service vesting conditions (“TSUs”) are accounted for as either equity-classified awards or liability-classified awards. The Company considered its intent and ability to settle awards in cash or shares of stock in determining whether to classify the awards as equity or liability awards. Compensation costs for equity-classified awards are recorded as general and administrative expense. The fair value of liability-classified awards is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general administrative expense and are remeasured at fair value each reporting period. As of June 30, 2025, TSU grants are accounted for as equity-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. The unrecognized cost associated with the TSUs was $ 7.2 million at June 30, 2025. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted average period of approximately 2.0 years. 22 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following table summarizes information regarding the TSUs activity for the period presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average Grant- ​ ​ Number of ​ Date Fair Value ​ ​ Units ​ per Unit (1) TSUs outstanding at December 31, 2024 1,379,356 ​ $ 6.43 Granted (2) 817,666 ​ $ 5.34 Forfeited ( 2,533 ) ​ $ 5.34 Vested ( 669,581 ) ​ $ 5.99 TSUs outstanding at June 30, 2025 1,524,908 ​ $ 6.04 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of TSUs issued for the six months ended June 30, 2025 was $ 4.4 million based on a grant-date market price of $ 5.34 per share. Restricted Stock Units with Market and Service Vesting Conditions Restricted stock units with market and service vesting conditions (“PSUs”) are accounted for as either equity-classified or liability-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. The fair value of the awards is estimated on their grant dates using a Monte Carlo simulation. The Company recognizes compensation cost over the requisite service or performance period. The Company accounts for forfeitures as they occur. Vesting of PSUs can range from 0 % to 200 % of the target awards granted based on the Company’s relative total shareholder return as compared to the total shareholder return of the Company’s performance peer group over the applicable performance period. The 2023, 2024 and 2025 PSU awards are accounted for as equity-classified awards and were issued with a three-year vesting period beginning on the grant date and ending on the third anniversary of the grant date. The three-year performance period for the 2023 awards is January 1, 2023 through December 31, 2025. The three-year performance period for the 2024 awards is January 1, 2024 through December 31, 2026. The three-year performance period for the 2025 awards is January 1, 2025 through December 31, 2027. Compensation costs related to PSU awards are recorded as general and administrative expense. The unrecognized cost associated with PSU awards was $ 4.2 million at June 30, 2025. The Company expects to recognize the unrecognized compensation cost for PSU awards over a weighted-average period of approximately 2.0 years. The below table reflects the ranges for the assumptions used in the Monte Carlo model for the 2025 PSUs: ​ ​ ​ ​ ​ ​ ​ February 2025 ​ Expected volatility ​ 58.6 % Dividend yield ​ 0.00 % Risk-free interest rate ​ 4.22 % ​ 23 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following table summarizes information regarding the PSU activity for the period presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average Grant- ​ ​ Number of ​ Date Fair Value ​ ​ Units ​ per Unit (1) PRSUs outstanding at December 31, 2024 608,500 ​ $ 9.58 Granted (2) 495,783 ​ $ 6.84 Forfeited — ​ $ — Vested ( 247,940 ) ​ $ 6.20 PRSUs outstanding at June 30, 2025 856,343 ​ $ 8.97 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of PSUs issued for the six months ended June 30, 2025 was $ 3.4 million based on a calculated fair value price ranging from $ 6.20 to $ 7.05 per share. Compensation Expense The following table summarizes the amount of recognized compensation expense associated with the EIP Plans, which are reflected in the accompanying Unaudited Condensed Consolidated Statements of Operations for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended For the Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 Share-based compensation costs ​ ​ ​ ​ ​ ​ ​ ​ TSUs ​ $ 1,335 ​ $ 1,272 ​ $ 2,623 ​ $ 2,363 PRSUs ​ 656 ​ 495 ​ 1,257 ​ 935 ​ ​ $ 1,991 ​ $ 1,767 ​ $ 3,880 ​ $ 3,298 ​ ​ Note 12. Leases The Company has leases for office space, warehouse space and equipment in its corporate office and operating regions as well as vehicles, compressors and surface rentals related to its business operations. In addition, the Company has right-of-way leases to operate the San Pedro Bay Pipeline. Most of the Company’s leases, other than its corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of the Company’s leases can be terminated with 30-day prior written notice. The majority of its month-to-month leases are not included as a lease liability in its balance sheet because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less. For the quarter ended June 30, 2025, all of the Company’s leases qualified as operating leases, and it did not have any existing or new leases qualifying as financing leases or variable leases. The Company’s corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, the Company uses an incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, the Company applies a portfolio approach based on the applicable lease terms and the current economic environment. The Company uses a reasonable market interest rate for its office equipment and vehicle leases. For the six months ended June 30, 2025 and 2024, the Company recognized approximately $ 1.1 million and $ 1.0 million, respectively, of costs relating to the operating leases in the Unaudited Condensed Consolidated Statements of Operations. 24 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Supplemental cash flow information related to the Company’s lease liabilities is included in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Non-cash amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows from operating leases $ 404 ​ $ 744 ​ The following table presents the Company’s right-of-use assets and lease liabilities for the period presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2025 ​ 2024 ​ ​ (In thousands) Right-of-use asset ​ $ 4,136 ​ $ 4,540 ​ ​ ​ ​ ​ ​ ​ Lease liabilities: ​ ​ Current lease liability ​ 1,716 ​ 1,784 Long-term lease liability ​ 3,268 ​ 3,683 Total lease liability ​ $ 4,984 ​ $ 5,467 ​ The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Office and ​ Leased vehicles ​ ​ ​ ​ ​ ​ warehouse ​ and office ​ ​ ​ ​ leases equipment Total 2025 ​ $ 722 ​ $ 373 ​ $ 1,095 2026 ​ ​ 1,218 ​ ​ 423 ​ ​ 1,641 2027 ​ ​ 843 ​ ​ 329 ​ ​ 1,172 2028 ​ ​ 724 ​ ​ 7 ​ ​ 731 2029 and thereafter ​ 1,087 ​ — ​ 1,087 Total lease payments ​ 4,594 ​ 1,132 ​ 5,726 Less: interest ​ 646 ​ 96 ​ 742 Present value of lease liabilities ​ $ 3,948 ​ $ 1,036 ​ $ 4,984 ​ The weighted average remaining lease terms and discount rate for all of the Company’s operating leases for the period presented: ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ 2025 ​ 2024 Weighted average remaining lease term (years): ​ ​ Office and warehouse space 3.29 4.08 ​ Vehicles 0.41 0.19 ​ Office equipment — 0.01 ​ Weighted average discount rate: ​ ​ ​ Office and warehouse space 5.34 % 5.44 % Vehicles 1.66 % 1.09 % Office equipment — % 0.05 % ​ ​ 25 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 13. Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows Accrued Liabilities Current accrued liabilities consisted of the following at the dates indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2025 ​ 2024 Accrued lease operating expense ​ $ 11,187 ​ $ 13,845 Accrued capital expenditures ​ ​ 11,483 ​ ​ 5,191 Accrued general and administrative expense ​ 4,941 ​ 6,281 Accrued production and ad valorem tax ​ 2,910 ​ 2,827 Accrued commitment fee and other expense ​ 2,305 ​ 2,395 Operating lease liability ​ ​ 1,716 ​ ​ 1,784 Asset retirement obligations ​ 1,377 ​ 1,377 Accrued interest payable ​ ​ 376 ​ ​ 292 Accrued liability - pipeline incident ​ ​ 1,100 ​ ​ 5,534 Accrued current income tax payable ​ ​ 482 ​ ​ 116 Other ​ 3,338 ​ 3,771 Accrued liabilities ​ $ 41,215 ​ $ 43,413 ​ Accounts Receivable Accounts receivable consisted of the following at the dates indicated (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ ​ December 31, ​ ​ 2025 ​ ​ 2024 Oil and natural gas receivables ​ $ 28,757 ​ ​ $ 28,505 Insurance receivable - pipeline incident ​ ​ 396 ​ ​ ​ 4,722 Joint interest owners and other ​ ​ 7,320 ​ ​ ​ 8,214 Total accounts receivable ​ 36,473 ​ ​ 41,441 Less: allowance for doubtful accounts ​ ( 1,781 ) ​ ​ ( 1,728 ) Total accounts receivable, net ​ $ 34,692 ​ ​ $ 39,713 ​ Supplemental Cash Flows Supplemental cash flows for the periods presented (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended ​ ​ June 30, ​ ​ 2025 ​ 2024 Supplemental cash flows: ​ ​ ​ ​ Cash paid for interest, net of amounts capitalized ​ $ 4,669 ​ $ 6,437 Cash paid for taxes 130 ​ 1,040 ​ ​ ​ ​ ​ ​ ​ Noncash investing and financing activities: ​ ​ ​ Increase (decrease) in capital expenditures in payables and accrued liabilities 6,292 ​ ( 1,561 ) ​ ​ 26 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 14. Related Party Transactions Related Party Agreements There have been no transactions between the Company and any related person in which the related person had a direct or indirect material interest for the three and six months ended June 30, 2025 and 2024. Note 15. Segment Reporting The Company’s operations are all related to the exploration, development and production of oil and natural gas in the United States, from which the Company derives all of its revenues. The Company manages its business as a single reportable segment, as its operations are focused on assets with similar economic characteristics, production processes, types of purchasers, regulatory environment and customers which are consistent across the Company. Therefore, the Company aggregates its operating regions into one reportable segment. The CODM uses consolidated net income to assess financial performance, allocating capital and other resources. The CODM uses consolidated net income in the annual budgeting and monthly forecasting process. Additionally, the CODM is regularly provided information on lease operating expense, gathering, processing and transportation and taxes other than income. Other segment items primarily consist of DD&A, accretion expense, general and administrative expense, pipeline incident loss, loss (gain) on commodity derivative, interest expense and income tax expense (benefit). Our significant segment expenses and other segment items are derived from and can be found within the Unaudited Consolidated Statement of Operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Six Months Ended ​ ​ June 30, ​ June 30, ​ ​ 2025 2024 ​ 2025 2024 ​ ​ (In thousands) Revenue ​ $ 68,361 ​ $ 79,503 ​ $ 140,411 ​ $ 155,802 Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating expense ​ ​ 38,622 ​ ​ 36,311 ​ ​ 76,039 ​ ​ 74,595 Gathering, processing and transportation ​ ​ 4,723 ​ ​ 4,895 ​ ​ 9,009 ​ ​ 9,669 Taxes other than income ​ ​ 4,299 ​ ​ 4,631 ​ ​ 8,683 ​ ​ 9,542 Other segment items ​ ​ 14,333 ​ ​ 26,547 ​ ​ 46,157 ​ ​ 64,273 Net income (loss) ​ $ 6,384 ​ $ 7,119 ​ $ 523 ​ $ ( 2,277 ) ​ ​ Note 16. Commitments and Contingencies Litigation and Environmental As part of our normal business activities, we may be named as defendants in litigation and legal proceedings, including those arising from regulatory and environmental matters. Although the Company is insured against various risks to the extent it believes it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify it against liabilities arising from future legal proceedings. 27 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Environmental costs for remediation are accrued based on estimates of known remediation requirements. Such accruals are based on management’s best estimate of the ultimate cost to remediate a site and are adjusted as further information and circumstances develop. Those estimates may change substantially depending on information about the nature and extent of contamination, appropriate remediation technologies and regulatory approvals. Expenditures to mitigate or prevent future environmental contamination are capitalized. Ongoing environmental compliance costs are charged to expense as incurred. In accruing for environmental remediation liabilities, costs of future expenditures for environmental remediation are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable. At June 30, 2025 and December 31, 2024, the Company had no environmental reserves recorded in its Unaudited Condensed Consolidated Balance Sheet. Termination of Contemplated Merger with Juniper Capital In connection with the Contemplated Mergers, on April 25, 2025, pursuant to Section 8.1(a) of the Merger Agreement, the Company and the Acquired Companies entered into the Termination Agreement to terminate the Merger Agreement, effective immediately. As a result of the Termination Agreement, the Merger Agreement is of no further force and effect. In accordance with the terms of the Termination Agreement, the Company made a cash payment to the Acquired Companies in lieu of any termination fee which might have otherwise been payable pursuant to the Merger Agreement in the amount of $ 800,000 as payment for certain of the Acquired Companies’ expenses. The Company and the Acquired Companies also agreed to release each other from certain claims and liabilities arising out of or related to the Merger Agreement or the transactions contemplated therein or thereby. The Company incurred professional fees and expenses of approximately $ 3.4 million in connection with the Contemplated Mergers and the Termination. Beta Pipeline Incident There have been no material changes to the legal proceedings, insurance receivables and costs associated with the incident that occurred at our producing oil property located at Beta (the “Incident”) as described in the Company’s annual financial statements included in its 2024 Form 10-K, except with respect to that disclosed below: On June 30, 2025, and December 31, 2024, the Company’s insurance receivables were $ 0.4 million and $ 4.7 million, respectively. Excluding the costs associated with the resolution of the federal and state matters discussed in the 2024 Form 10-K, for the six months ended June 30, 2025, the Company incurred legal fees, loss load and other non-reimbursable expenses of $ 0.6 million that are classified as “Pipeline Incident Loss” on the Company’s Unaudited Condensed Consolidated Statements of Operations. For more information, please see the 2024 Form 10-K. Sinking Fund Trust Agreement Beta Operating Company, LLC (“Beta LLC”), a wholly owned subsidiary, assumed an obligation with a third party to make payments into a sinking fund in connection with the Company’s properties in federal waters offshore Southern California, the purpose of which is to provide funds adequate to decommission the portion of the San Pedro Bay Pipeline that lies within state waters and the surface facilities. Interest earned in the account stays in the account. The obligation to fund ceases when the aggregate value of the account reaches $ 4.3 million. As of June 30, 2025, the account balance included in restricted investments was approximately $ 4.6 million. Supplemental Bond for Decommissioning Liabilities Trust Agreement Beta LLC has a decommissioning obligation with BOEM in connection with the Company’s properties in federal waters offshore Southern California. The Company supports its decommissioning obligation with $ 161.3 million of A-rated surety bonds. 28 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS In December 2021, the Company entered into two escrow funding agreements with its surety providers to fund interest-bearing escrow accounts on a quarterly basis to reimburse and indemnify the surety providers for any claims arising under the surety bonds related to the decommissioning of our Beta LLC properties. In March 2024, the Company amended one of the escrow funding agreements to decrease the amount funded from $ 14.8 million per year to $ 8.0 million per year. There were no changes made to the second escrow agreement. The obligation for these agreements ceases when the total aggregate value of the escrow accounts reaches $ 172.6 million. The below table outlines the updated funding commitment for these agreements at June 30, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment Due by Period Funding commitment ​ Total Remaining 2025 2026 2027 2028 2029 Thereafter (1) Federal escrow fund payments ​ $ 133,763 ​ $ 4,000 ​ $ 8,000 ​ $ 8,000 ​ $ 8,000 ​ $ 8,000 ​ $ 97,763 State escrow fund payments ​ ​ 8,652 ​ ​ 517 ​ ​ 1,034 ​ ​ 1,034 ​ ​ 1,034 ​ ​ 1,034 ​ ​ 3,999 Total sinking fund payments ​ $ 142,415 ​ $ 4,517 ​ $ 9,034 ​ $ 9,034 ​ $ 9,034 ​ $ 9,034 ​ $ 101,762 (1) The remaining payments will be made during the years 2030 through 2042. As of June 30, 2025, the Company has funded $ 30.5 million into the escrow accounts which is reflected in “Restricted investments” on the Unaudited Condensed Consolidated Balance Sheet. Note 17. Income Taxes The Company’s current income tax benefit (expense) was ($ 0.5 ) million for each of the three and six months ended June 30, 2025. The Company’s current income tax benefit (expense) was ($ 0.6 ) million and ($ 2.0 ) million for the three and six months ended June 30, 2024, respectively. The Company’s deferred income tax benefit (expense) was ($ 1.4 ) million and $ 0.1 million for the three and six months ended June 30, 2025, respectively. The Company’s deferred income tax benefit (expense) was ($ 2.1 ) million and $ 2.6 million for the three and six months ended June 30, 2024, respectively. The effective tax rates for the three and six months ended June 30, 2025 were 23.1 % and 42.0 %, respectively. The effective tax rates for the three and six months ended June 30, 2024 were 27.4 % and 21.3 %, respectively. The difference between the statutory U.S. federal income tax rate of 21 % and the effective tax rate for the three and six months ended June 30, 2025 was primarily from higher discrete realized hedging income tax expense and lower book income in the second quarter of 2025. The difference between the statutory U.S. federal income tax rate of 21 % and the effective tax rate for the three and six months ended June 30, 2024 was due to higher income earned in the second quarter of 2024. On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (“OBBBA”), which introduces significant changes to U.S. federal tax law. Key provisions of the legislation include modifications to the limitation on the deductibility of business interest expense, changes to the treatment of research and development expenditures, full expensing of qualified capital expenditures, and modifications to the international tax framework. The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements. While the full effects are still being assessed, the Company anticipates a reduction in current income tax expense for the year with no material impact to the effective tax rate. 29 Table of Contents AMPLIFY ENERGY CORP. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 18. Subsequent Events Sale of Non-Operated Eagle Ford Assets and Borrowing Base Redetermination On July 1, 2025, OLLC entered into the Purchase and Sale Agreement with Murphy Exploration & Production Company – USA, a Delaware corporation (“Buyer”), the existing operator of the majority of OLLC’s Assets (as defined in the Purchase and Sale Agreement), pursuant to which OLLC sold to Buyer all of OLLC’s Assets, which include, among other things, OLLC’s right, title and interest in and to certain specified oil and gas Properties, Contracts, Equipment and Production (each, as defined in the Purchase and Sale Agreement) within or related to certain designated lands in Karnes County, Texas, for an aggregate cash purchase price of $ 23.0 million, subject to certain post-closing adjustments. The Asset Sale closed simultaneously with the execution and delivery of the Purchase and Sale Agreement on July 1, 2025. The Purchase and Sale Agreement became effective as of June 15, 2025. Additionally, see Note 8 for additional information relating to the reduction in the Company’s borrowing base in connection with the Asset Sale. ​ ​ ​ 30 Table of Contents