| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 103.54 | 2954 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 11.94 | 252 |
| Graham Formula | 1.34 | -60 |
Amplify Energy Corp. (NYSE: AMPY) is a Houston-based independent oil and natural gas exploration and production company focused on acquiring, developing, and operating assets across key U.S. basins. The company holds interests in producing and undeveloped acreage across Oklahoma, the Rockies, offshore Southern California, East Texas/North Louisiana, and the Eagle Ford shale. As of December 2021, Amplify reported proved reserves of 121.2 million barrels of oil equivalent (MMBoe) and operated 2,417 gross producing wells. With a diversified asset base and a market cap of approximately $109 million, Amplify Energy leverages its operational expertise to optimize production in mature basins while maintaining cost discipline. The company operates in the highly competitive oil & gas E&P sector, where commodity price volatility and regulatory pressures shape investment decisions. Amplify’s strategic focus on low-decline, conventional assets provides stable cash flows, though its offshore California operations face unique environmental and regulatory risks. Investors eyeing small-cap energy exposure may find Amplify’s niche positioning and leverage to oil prices compelling, but its limited scale and debt load warrant caution.
Amplify Energy presents a high-risk, high-reward opportunity within the small-cap E&P space. The company’s $109M market valuation and 0.37 beta suggest lower volatility relative to peers, but its modest revenue ($294.7M in latest reported period) and thin net income ($12.9M) reflect sensitivity to oil prices. Positive operating cash flow ($51.3M) is offset by heavy capex (-$72.2M), indicating reinvestment needs. With no dividend and $132.5M in debt, Amplify is suited for speculative investors betting on oil price rebounds or strategic asset sales. Its offshore California assets (Beta Field) add regulatory complexity but could unlock value if permitting improves. Competitively, Amplify’s small scale limits cost advantages vs. larger peers, though its Rockies and Eagle Ford positions provide diversification.
Amplify Energy’s competitive positioning hinges on its niche focus on mature, conventional assets with predictable decline profiles—a contrast to capital-intensive shale players. The company’s offshore California operations (Beta Field) are a differentiator but face regulatory headwinds, including the 2021 pipeline spill that curtailed production. Onshore, Amplify’s low-decline assets in Oklahoma and East Texas generate steady cash flows but lack the growth potential of Permian-focused peers. Its small scale (~$109M market cap) limits economies of scale in procurement and hedging, though the low-beta profile appeals to risk-averse investors. The company’s leverage (debt-to-equity of ~1.2x) is manageable but restricts flexibility amid volatility. Amplify’s competitive edge lies in operational efficiency; its LOE/boe is competitive at ~$10/boe, but larger rivals like Matador Resources (MTDR) achieve lower costs via scale. The lack of a dividend further limits appeal vs. yield-paying peers. Strategically, Amplify could attract acquisition interest for its California assets or Rockies footprint, but its valuation discounts execution risks.