Amplify Energy Q3 2026: Revenue Beats, But a $24.6M Derivative Loss Stings

Amplify Energy's third quarter of 2026 presented two very different stories at once. Revenue of $51.4 million beat the $43.7 million consensus estimate, lifted by a roughly 9% sequential jump in production to 7.4 thousand barrels of oil per day. That operational progress was real and broad-based, with output rising about 11% at Beta and 8% at Bairoil.

What swamped the headline numbers was a $24.6 million non-cash unrealized loss on commodity derivatives, which turned improving operations into a reported GAAP loss of $0.46 per share against an analyst estimate of $0.025. The company separately disclosed Adjusted Net Income of $700,000, though it did not provide an adjusted per-share figure. The EPS miss of roughly 1,940% relative to estimates is almost entirely a derivative accounting story rather than evidence of an operational collapse.

The cost picture at Bairoil was a genuine bright spot. Bairoil lease operating expenses fell to their lowest level since the asset was acquired, and CEO Dan Furbee said that due to CO2 deliveries running about 80% above the contracted minimum, estimated annualized savings are now forecast to exceed $20 million compared to the prior year, up from an earlier expectation of more than $10 million. Meanwhile, two recently drilled Beta wells, C29 and C16, each averaged around 360 to 380 gross barrels per day in the quarter with expected payouts of roughly 10 months.

On the pricing side, realized oil fell to $75.19 per barrel from $85.41, with shrinking California refining capacity continuing to pressure differentials for Beta crude. Total revenue was down about 22.5% year over year as a result. The company noted that fourth-quarter differentials at Beta have improved, and newly secured Special Case Royalty Relief effective November 1, 2026, reduces the royalty rate on all Beta production to roughly 12.4%, which is expected to strengthen 2027 drilling economics.

Amplify kept its full-year Adjusted EBITDA guidance unchanged at $30 million to $40 million and said it expects to exit 2026 with a net cash position. The company has also been active on buybacks, repurchasing approximately 1.6 million shares for about $6.9 million since the program launched in August 2026. The borrowing base redetermination under its revolving credit facility is expected later in the fourth quarter, making that an upcoming item for investors to watch.