Amplify Energy Corp. closed the sale of its Oklahoma interests on December 29 2025 for $92.5 million, a transaction that fully extinguished the remaining balance of its $127.5 million revolving credit facility. The proceeds, combined with the $122 million received from the December 23 sale of East Texas assets, allowed the company to retire all debt and leave its balance sheet debt‑free.
The combined divestitures reduced Amplify’s total debt from approximately $127.5 million to zero, eliminating interest expense and covenant exposure. The company’s cash‑flow position improves markedly, freeing capital that can be deployed toward development of its high‑margin Beta offshore and Bairoil assets, which represent the core of its oil‑weighted strategy.
Management highlighted that the portfolio simplification aligns with a broader industry trend of shedding lower‑margin, non‑core assets. CEO Dan Furbee said the company is “excited to complete the transactions, which streamline operations and sharpen focus on the highest‑upside assets.” The move is expected to materially reduce G&A costs, which were $6.7 million in Q3 2025, a 2 % decline from the prior quarter.
The debt elimination also removes the need for an amended credit facility, which the company had planned to close by December 31. By eliminating the facility, Amplify reduces refinancing risk and gains greater flexibility to pursue future acquisitions or capital expenditures without covenant constraints.
Analysts note that the transaction signals a strategic pivot toward an oil‑weighted portfolio, which typically offers higher margins and more stable production profiles than natural gas. The company’s focus on Beta offshore and Bairoil assets positions it to capture upside in the U.S. Rockies and Pacific offshore markets, where demand for oil remains resilient.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.