Investment Thesis
Amplify Energy demonstrates solid profitability with a 16.7% net margin and strong cash generation (18.7% FCF margin), supported by excellent liquidity (2.25x current ratio) and zero long-term debt. However, revenue declined 10.6% YoY despite net income growth, indicating margin expansion from commodity pricing rather than operational growth, which presents sustainability concerns in a cyclical industry.
AMPY Strengths
- Strong net profit margin of 16.7% with positive YoY net income growth of 5.7%
- Exceptional balance sheet with zero long-term debt and cash equivalents of $60.7M covering 42.7% of total liabilities
- Robust free cash flow generation at $49.2M with healthy 18.7% FCF margin and 33.5x interest coverage ratio
- Excellent liquidity position with 2.25x current ratio and 2.11x quick ratio indicating strong short-term financial flexibility
AMPY Risks
- Revenue contraction of 10.6% YoY signals declining production volumes or commodity price weakness, raising concerns about top-line sustainability
- Low return metrics (ROE 9.6%, ROA 7.3%) despite strong margins suggest capital allocation inefficiency or asset utilization challenges
- Cyclical industry exposure with earnings heavily dependent on crude oil and natural gas prices beyond management control
- Elevated insider activity (10 Form 4 filings in 90 days) warrants monitoring for potential negative signaling
Key Metrics to Watch
- Revenue trend and volume metrics to assess whether decline is temporary or structural
- Operating cash flow sustainability relative to capital expenditure requirements
- Return on equity trajectory as indicator of capital deployment effectiveness
- Commodity price environment and production reserve replacement rates
AMPY Financial Metrics
AMPY Profitability Ratios
AMPY Balance Sheet & Liquidity
AMPY 5-Year Financial Trend
5-Year Trend Summary: Amplify Energy Corp.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $0.31 reflects profitable operations.
AMPY Growth Metrics (YoY)
AMPY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $66.4M | -$5.9M | $0.49 |
| Q2 2025 | $68.4M | $523.0K | $0.01 |
| Q1 2025 | $72.1M | -$5.9M | $-0.15 |
| Q3 2024 | $69.9M | $7.1M | $-0.34 |
| Q2 2024 | $72.0M | -$2.3M | $-0.06 |
| Q1 2024 | $76.3M | -$9.4M | $-0.24 |
| Q3 2023 | $76.8M | $9.8M | $-0.34 |
| Q2 2023 | $72.0M | $9.8M | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMPY Capital Allocation
AMPY SEC Filings
Access official SEC EDGAR filings for Amplify Energy Corp. (CIK: 0001533924)