Amplify Energy Corp. closed the sale of its East Texas interests on December 23, 2025, receiving $122 million in cash. The buyer was not disclosed in the announcement. The proceeds will be used to reduce the company’s debt, which stood at $127.53 million as of the closing date, and to bolster liquidity for future development of its core assets.
The divestiture removes a non‑core portfolio that had been on the balance sheet since the company’s earlier 2025 announcement. By shedding the East Texas assets, Amplify can concentrate capital and management attention on its high‑margin Beta offshore field and the Bairoil Rockies operation. The company’s strategic plan, launched in summer 2025, has already seen the sale of Eagle Ford assets for $23 million and an expected Oklahoma sale of $92.5 million later this year.
The $122 million cash inflow is a significant boost to Amplify’s balance sheet. It will be applied to debt reduction, improving the debt‑to‑EBITDA ratio and freeing up working capital for drilling and development in the Beta field, which has shown strong internal rates of return. The company’s net loss of $21.0 million in Q3 2025 was largely driven by an impairment charge on marketing assets; the asset sale is expected to help offset that loss in the coming quarters.
Strategically, the sale signals a shift toward a more oil‑weighted operator. Crude oil production as a percentage of total output rose from 41% in Q2 2024 to 48% in Q2 2025, and the company plans to further increase that mix as it focuses on the Beta and Bairoil operations. Management has emphasized that the divestiture will allow tighter cost control and higher operating margins in the core segments.
While the announcement did not include a buyer name or detailed segment financials, the transaction aligns with Amplify’s broader portfolio optimization strategy. The company’s CEO, Dan Furbee, has highlighted the importance of simplifying the portfolio, enhancing liquidity, and investing in high‑return projects such as the Beta drilling program and potential carbon capture initiatives at Bairoil.
The sale also positions Amplify to better navigate market volatility. By reducing debt and concentrating on high‑margin assets, the company is better equipped to weather price swings and pursue growth opportunities in its core regions. The strategic focus on the Beta offshore field and Bairoil Rockies operation is expected to drive future revenue growth and improve profitability.
Overall, the completion of the East Texas asset sale represents a key milestone in Amplify Energy’s transformation plan, strengthening its balance sheet, sharpening its operational focus, and setting the stage for accelerated development of its most promising assets.
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