Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35512 | |
Entity Registrant Name | Amplify Energy Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-1326219 | |
Entity Address, Address Line One | 500 Dallas Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 832 | |
Local Phone Number | 219-9001 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AMPY | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 39,742,600 | |
Entity Central Index Key | 0001533924 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 502 | $ 20,746 |
Accounts receivable, net (see Note 12) | 36,306 | 39,096 |
Short-term derivative instruments | 1,780 | 17,669 |
Prepaid expenses and other current assets | 23,430 | 20,672 |
Total current assets | 62,018 | 98,183 |
Property and equipment, at cost: | ||
Oil and natural gas properties, successful efforts method | 909,387 | 873,478 |
Support equipment and facilities | 150,295 | 149,069 |
Other | 11,352 | 10,359 |
Accumulated depreciation, depletion and amortization | (702,232) | (686,165) |
Property and equipment, net | 368,802 | 346,741 |
Long-term derivative instruments | 0 | 9,405 |
Restricted investments | 24,904 | 19,935 |
Operating lease - long term right-of-use asset | 5,012 | 5,756 |
Deferred tax asset | 256,363 | 253,796 |
Other long-term assets | 3,276 | 3,858 |
Total assets | 720,375 | 737,674 |
Current liabilities: | ||
Accounts payable | 25,056 | 23,616 |
Revenues payable | 12,629 | 21,944 |
Accrued liabilities (see Note 12) | 35,831 | 50,871 |
Total current liabilities | 73,516 | 96,431 |
Long-term debt (see Note 7) | 118,000 | 115,000 |
Asset retirement obligations | 125,739 | 122,001 |
Long-term derivative instruments | 477 | 0 |
Operating lease liability | 4,241 | 5,090 |
Other long-term liabilities | 8,113 | 8,116 |
Total liabilities | 330,086 | 346,638 |
Commitments and contingencies (see Note 14) | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.01 par value: 50,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023 | ||
Common stock, $0.01 par value: 250,000,000 shares authorized; 39,637,947 and 39,147,205 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 398 | 393 |
Additional paid-in capital | 436,582 | 435,095 |
Accumulated deficit | (46,691) | (44,452) |
Total stockholders' equity (deficit) | 390,289 | 391,036 |
Total liabilities and equity | $ 720,375 | $ 737,674 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 39,637,947 | 39,147,205 |
Common stock, shares outstanding (in shares) | 39,637,947 | 39,147,205 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenues | $ 79,503 | $ 71,971 | $ 155,802 | $ 151,841 |
Costs and expenses: | ||||
Lease operating expense | 36,311 | 34,903 | 74,595 | 67,863 |
Gathering, processing and transportation | 4,895 | 5,149 | 9,669 | 10,751 |
Taxes other than income | 4,631 | 5,205 | 9,542 | 10,498 |
Depreciation, depletion and amortization | 7,827 | 7,072 | 16,066 | 12,880 |
General and administrative expense | 8,358 | 7,778 | 18,158 | 16,292 |
Accretion of asset retirement obligations | 2,096 | 1,975 | 4,157 | 3,917 |
Loss (gain) on commodity derivative instruments | 1,225 | (3,798) | 17,789 | (18,957) |
Pipeline incident loss | 500 | 6,844 | 1,207 | 15,123 |
Other, net | 108 | 253 | 149 | 279 |
Total costs and expenses | 65,951 | 65,381 | 151,332 | 118,646 |
Operating income (loss) | 13,552 | 6,590 | 4,470 | 33,195 |
Other income (expense): | ||||
Interest expense, net | (3,632) | (3,701) | (7,159) | (9,438) |
Litigation settlement (See Note 16) | 84,875 | |||
Other income (expense) | (109) | 122 | (204) | 195 |
Total other income (expense) | (3,741) | (3,579) | (7,363) | 75,632 |
Income (loss) before income taxes | 9,811 | 3,011 | (2,893) | 108,827 |
Income tax (expense) benefit - current | (557) | 6,853 | (1,952) | (5,674) |
Income tax (expense) benefit - deferred | (2,135) | (48) | 2,568 | 259,422 |
Net income (loss) | 7,119 | 9,816 | (2,277) | 362,575 |
Allocation of net income (loss) to: | ||||
Net income (loss) available to common stockholders | 6,773 | 9,383 | (2,277) | 346,153 |
Net income (loss) allocated to participating securities | 346 | 433 | 0 | 16,422 |
Net Income (Loss) | $ 7,119 | $ 9,816 | $ (2,277) | $ 362,575 |
Earnings (loss) per share: (See Note 9) | ||||
Basic earnings (loss) per share (in $ per share) | $ 0.17 | $ 0.24 | $ (0.06) | $ 8.91 |
Diluted earnings (loss) per share (in $ per share) | $ 0.17 | $ 0.24 | $ (0.06) | $ 8.91 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 39,629 | 38,971 | 39,519 | 38,833 |
Diluted (in shares) | 39,629 | 38,971 | 39,519 | 38,833 |
Oil and natural gas sales | ||||
Revenues: | ||||
Total revenues | $ 72,346 | $ 67,393 | $ 147,668 | $ 133,677 |
Other revenues | ||||
Revenues: | ||||
Total revenues | $ 7,157 | $ 4,578 | $ 8,134 | $ 18,164 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,277) | $ 362,575 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 16,066 | 12,880 |
Loss (gain) on derivative instruments | 17,789 | (18,957) |
Cash settlements (paid) received on expired derivative instruments | 7,983 | (1,192) |
Deferred income tax expense (benefit) | (2,568) | (259,422) |
Accretion of asset retirement obligations | 4,157 | 3,917 |
Share-based compensation (see Note 10) | 3,298 | 2,281 |
Settlement of asset retirement obligations | (416) | (289) |
Amortization and write-off of deferred financing costs | 608 | 771 |
Bad debt expense | 26 | 85 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,763 | 17,348 |
Prepaid expenses and other assets | (2,784) | (4,558) |
Payables and accrued liabilities | (21,544) | (20,662) |
Other | 444 | |
Net cash provided by operating activities | 23,101 | 95,221 |
Cash flows from investing activities: | ||
Additions to oil and gas properties | (38,616) | (16,772) |
Additions to other property and equipment | (992) | (153) |
Additions to restricted investments | (4,969) | (4,224) |
Net cash used in investing activities | (44,577) | (21,149) |
Cash flows from financing activities: | ||
Advances on Revolving Credit Facility | 53,000 | 10,000 |
Payments on Revolving Credit Facility | (50,000) | (80,000) |
Deferred financing costs | (60) | |
Shares withheld for taxes | (1,768) | (2,147) |
Net cash used in financing activities | 1,232 | (72,207) |
Net change in cash and cash equivalents | (20,244) | 1,865 |
Cash and cash equivalents, beginning of period | 20,746 | |
Cash and cash equivalents, end of period | $ 502 | $ 1,865 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Total |
Balance at Dec. 31, 2022 | $ 386 | $ 432,251 | $ (437,202) | $ (4,565) |
Net income (loss) | 0 | 0 | 352,759 | 352,759 |
Share-based compensation expense | 0 | 941 | 0 | 941 |
Shares withheld for taxes | 0 | (2,141) | 0 | (2,141) |
Other | 5 | (5) | 0 | 0 |
Balance at Mar. 31, 2023 | 391 | 431,046 | (84,443) | 346,994 |
Balance at Dec. 31, 2022 | 386 | 432,251 | (437,202) | (4,565) |
Net income (loss) | 362,575 | |||
Balance at Jun. 30, 2023 | 391 | 432,380 | (74,627) | 358,144 |
Balance at Mar. 31, 2023 | 391 | 431,046 | (84,443) | 346,994 |
Net income (loss) | 9,816 | 9,816 | ||
Share-based compensation expense | 1,340 | 1,340 | ||
Shares withheld for taxes | (6) | (6) | ||
Balance at Jun. 30, 2023 | 391 | 432,380 | (74,627) | 358,144 |
Balance at Dec. 31, 2023 | 393 | 435,095 | (44,452) | 391,036 |
Net income (loss) | 0 | 0 | (9,396) | (9,396) |
Share-based compensation expense | 0 | 1,120 | 0 | 1,120 |
Shares withheld for taxes | 0 | (1,745) | 0 | (1,745) |
Other | 5 | (5) | 0 | 0 |
Balance at Mar. 31, 2024 | 398 | 434,465 | (53,848) | 381,015 |
Balance at Dec. 31, 2023 | 393 | 435,095 | (44,452) | 391,036 |
Net income (loss) | (2,277) | |||
Balance at Jun. 30, 2024 | 398 | 436,582 | (46,691) | 390,289 |
Balance at Mar. 31, 2024 | 398 | 434,465 | (53,848) | 381,015 |
Net income (loss) | 7,119 | 7,119 | ||
Share-based compensation expense | 2,140 | 38 | 2,178 | |
Shares withheld for taxes | (23) | (23) | ||
Balance at Jun. 30, 2024 | $ 398 | $ 436,582 | $ (46,691) | $ 390,289 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation General Amplify Energy Corp. (“Amplify Energy,” “Amplify,” “it” or the “Company”) is a publicly traded Delaware corporation whose common stock is listed on the NYSE under the symbol “AMPY.” The Company operates in one reportable segment that is engaged in the acquisition, development, exploitation and production of oil and natural gas properties. The Company’s management evaluates performance based on one reportable business segment as there are not different economic environments within the operation of the Company’s oil and natural gas properties. The Company’s assets consist primarily of producing oil and natural gas properties located in Oklahoma, the Rockies (“Bairoil”), federal waters offshore Southern California (“Beta”), East Texas/North Louisiana and the Eagle Ford (non-op). Most of the Company’s oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. Basis of Presentation The Company’s accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the Company’s opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Material intercompany transactions and balances have been eliminated. The results reported in these Unaudited Condensed Consolidated Financial Statements are not necessarily indicative of results that may be expected for the entire year. Furthermore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Accordingly, the accompanying Unaudited Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Company’s annual financial statements included in its 2023 Form 10-K. Use of Estimates The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; fair value estimates; revenue recognition; and contingencies and insurance accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies There have been no changes to the Company’s significant accounting policies as described in the Company’s annual financial statements included in its 2023 Form 10-K. New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue | |
Revenue | Note 3. Revenue Revenue from Contracts with Customers Revenue is recognized when the following five steps are completed: (1) identify the contract with the customer, (2) identify the performance obligation (promise) in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when the reporting organization satisfies a performance obligation. The Company has determined that its contracts for the sale of crude oil, unprocessed natural gas, residue gas and NGLs contain monthly performance obligations to deliver product at locations specified in the contract. Control is transferred at the delivery location, at which point the performance obligation has been satisfied and revenue is recognized. Fees included in the contract that are incurred prior to control transfer are classified as gathering, processing and transportation, and fees incurred after control transfers are included as a reduction to the transaction price. The transaction price at which revenue is recognized consists entirely of variable consideration based on quoted market prices less various fees and the quantity of volumes delivered. Disaggregation of Revenue The Company has identified three material revenue streams in its business: oil, natural gas and NGLs. The following table presents the Company’s revenues disaggregated by revenue stream. For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Revenues Oil $ 57,789 $ 50,750 $ 115,210 $ 89,566 NGLs 6,565 6,411 14,091 14,196 Natural gas 7,992 10,232 18,367 29,915 Oil and natural gas sales $ 72,346 $ 67,393 $ 147,668 $ 133,677 Contract Balances Under the Company’s sales contracts, the Company invoices customers once its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. Accounts receivable attributable to the Company’s revenue contracts with customers were $30.2 million at June 30, 2024 and $31.1 million at December 31, 2023. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurements of Financial Instruments | |
Fair Value Measurements of Financial Instruments | Note 4. Fair Value Measurements of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date. Fair value estimates are based on either (i) actual market data or (ii) assumptions that other market participants would use in pricing an asset or liability, including estimates of risk. A three-tier hierarchy has been established that classifies fair value amounts recognized or disclosed in the financial statements. The hierarchy considers fair value amounts based on observable inputs (Levels 1 and 2) to be more reliable and predictable than those based primarily on unobservable inputs (Level 3). All the derivative instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets were considered Level 2. The carrying values of accounts receivables, accounts payables (including accrued liabilities), restricted investments and amounts outstanding under long-term debt agreements with variable rates included in the accompanying Unaudited Condensed Consolidated Balance Sheets approximated fair value at June 30, 2024 and December 31, 2023. The fair value estimates are based upon observable market data and are classified within Level 2 of the fair value hierarchy. These assets and liabilities are not presented in the following tables. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair market values of the derivative financial instruments reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 were based on estimated forward commodity prices. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement in its entirety. The significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables present the gross derivative assets and liabilities that are measured at fair value on a recurring basis at June 30, 2024 and December 31, 2023 for each of the fair value hierarchy levels: Fair Value Measurements at June 30, 2024 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 18,688 $ — $ 18,688 Interest rate derivatives — — — — Total assets $ — $ 18,688 $ — $ 18,688 Liabilities: Commodity derivatives $ — $ 17,385 $ — $ 17,385 Interest rate derivatives — — — — Total liabilities $ — $ 17,385 $ — $ 17,385 Fair Value Measurements at December 31, 2023 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 39,439 $ — $ 39,439 Interest rate derivatives — — — — Total assets $ — $ 39,439 $ — $ 39,439 Liabilities: Commodity derivatives $ — $ 12,365 $ — $ 12,365 Interest rate derivatives — — — — Total liabilities $ — $ 12,365 $ — $ 12,365 See Note 5 for additional information regarding the Company’s derivative instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are reported at fair value on a nonrecurring basis, as reflected on the accompanying Unaudited Condensed Consolidated Balance Sheets. The following methods and assumptions are used to estimate the fair values: ● The fair value of asset retirement obligations (“AROs”) is based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding factors such as the existence of a legal obligation for an ARO; amounts and timing of settlements; the credit-adjusted risk-free rate; and inflation rates. The initial fair value estimates are based on unobservable market data and are classified within Level 3 of the fair value hierarchy. See Note 6 for a summary of changes in AROs. ● Proved oil and natural gas properties are reviewed for impairment when events and circumstances indicate a possible decline in the recoverability of the carrying value of such properties. The Company uses an income approach based on the discounted cash flow method, whereby the present value of expected future net cash flows is discounted by applying an appropriate discount rate, for purposes of placing a fair value on the assets. The future cash flows are based on management’s estimates for the future. The unobservable inputs used to determine fair value include, but are not limited to, estimates of proved reserves, estimates of probable reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and natural gas properties (some of which are Level 3 inputs within the fair value hierarchy). ● No impairment expense was recorded on proved oil and natural gas properties during the three and six months ended June 30, 2024 and 2023. |
Risk Management and Derivative
Risk Management and Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Risk Management and Derivative Instruments | |
Risk Management and Derivative Instruments | Note 5. Risk Management and Derivative Instruments Derivative instruments are utilized to manage exposure to commodity price and interest rate fluctuations and to achieve a more predictable cash flow in connection with natural gas and oil sales and borrowing related activities. These instruments limit exposure to declines in prices but also limit the benefits that would be realized if prices increase. Certain inherent business risks are associated with commodity derivative contracts, including market risk and credit risk. Market risk is the risk that the price of natural gas or oil will change, either favorably or unfavorably, in response to changing market conditions. Credit risk is the risk of loss from nonperformance by the counterparty to a contract. It is the Company’s policy to enter into derivative contracts only with creditworthy counterparties, which are generally financial institutions, deemed by management as competent and competitive market makers. Some of the lenders, or certain of their affiliates, under the Company’s current credit agreements are counterparties to its derivative contracts. While collateral is generally not required to be posted by counterparties, credit risk associated with derivative instruments is minimized by limiting exposure to any single counterparty and entering into derivative instruments only with creditworthy counterparties that are generally large financial institutions. Additionally, master netting agreements are used to mitigate risk of loss due to default with counterparties on derivative instruments. The Company has also entered into International Swaps and Derivatives Association Master Agreements (“ISDA Agreements”) with each of its counterparties. The terms of the ISDA Agreements provide the Company and each of its counterparties with rights of set-off upon the occurrence of defined acts of default by either the Company or its counterparty to a derivative, whereby the party not in default may set-off all liabilities owed to the defaulting party against all net derivative asset receivables from the defaulting party. As a result, had certain counterparties failed completely to perform according to the terms of the existing contracts, the Company would have the right to offset $3.2 million against amounts outstanding under our Revolving Credit Facility at June 30, 2024. See Note 7 for additional information regarding the Company’s Revolving Credit Facility. Commodity Derivatives The Company may use a combination of commodity derivatives (e.g., floating-for-fixed swaps, put options and costless collars) to manage exposure to commodity price volatility. The Company recognizes all derivative instruments at fair value. The Company enters into natural gas derivative contracts that are indexed to NYMEX-Henry Hub. The Company also enters into oil derivative contracts indexed to NYMEX-WTI. At June 30, 2024, the Company had the following open commodity positions: Remaining 2024 2025 2026 Natural Gas Derivative Contracts: Fixed price swap contracts: Average monthly volume (MMBtu) 775,000 675,000 500,000 Weighted-average fixed price $ 3.73 $ 3.74 $ 3.79 Collar contracts: Two-way collars Average monthly volume (MMBtu) 500,000 500,000 500,000 Weighted-average floor price $ 3.50 $ 3.50 $ 3.55 Weighted-average ceiling price $ 4.10 $ 4.10 $ 4.17 Crude Oil Derivative Contracts: Fixed price swap contracts: Average monthly volume (Bbls) 83,000 78,583 30,917 Weighted-average fixed price $ 74.34 $ 71.79 $ 70.68 Collar contracts: Two-way collars Average monthly volume (Bbls) 102,000 59,500 — Weighted-average floor price $ 70.00 $ 70.00 $ — Weighted-average ceiling price $ 80.20 $ 80.20 $ — Balance Sheet Presentation The following table summarizes both: (i) the gross fair value of derivative instruments by the appropriate balance sheet classification even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the balance sheet and (ii) the net recorded fair value as reflected on the balance sheet at June 30, 2024 and December 31, 2023. There was no cash collateral received or pledged associated with the Company’s derivative instruments since most of its counterparties, or certain of its affiliates, to its derivative contracts are lenders under its Revolving Credit Facility. Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives June 30, June 30, December 31, December 31, Type Balance Sheet Location 2024 2024 2023 2023 (In thousands) Commodity contracts Short-term derivative instruments $ 11,726 $ 9,946 $ 21,657 $ 3,988 Interest rate swaps Short-term derivative instruments — — — — Gross fair value 11,726 9,946 21,657 3,988 Netting arrangements (9,946) (9,946) (3,988) (3,988) Net recorded fair value Short-term derivative instruments $ 1,780 $ — $ 17,669 $ — Commodity contracts Long-term derivative instruments $ 6,962 $ 7,439 $ 17,782 $ 8,377 Interest rate swaps Long-term derivative instruments — — — — Gross fair value 6,962 7,439 17,782 8,377 Netting arrangements (6,962) (6,962) (8,377) (8,377) Net recorded fair value Long-term derivative instruments $ — $ 477 $ 9,405 $ — Loss (Gain) on Derivative Instruments The Company does not designate derivative instruments as hedging instruments for accounting and financial reporting purposes. Accordingly, all gains and losses, including changes in the derivative instruments’ fair values, have been recorded in the accompanying Unaudited Condensed Consolidated Statements of Operations. The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): For the Three Months Ended For the Six Months Ended Statements of June 30, June 30, Operations Location 2024 2023 2024 2023 Commodity derivative contracts Loss (gain) on commodity derivatives $ 1,225 $ (3,798) $ 17,789 $ (18,957) |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2024 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | Note 6. Asset Retirement Obligations The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the six months ended June 30, 2024 (in thousands): Asset retirement obligations at beginning of period $ 123,494 Liabilities settled (416) Liabilities removed upon sale of wells — Accretion expense 4,157 Revision of estimates 80 Asset retirement obligation at end of period 127,315 Less: Current portion 1,576 Asset retirement obligations - long-term portion $ 125,739 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt. | |
Long-Term Debt | Note 7. Long-Term Debt The following table presents the Company’s consolidated debt obligations at the dates indicated: June 30, December 31, 2024 2023 (In thousands) Revolving Credit Facility (1) $ 118,000 $ 115,000 Total long-term debt $ 118,000 $ 115,000 (1) The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. Amended and Restated Credit Agreement On July 31, 2023, OLLC and Amplify Acquisitionco LLC (“Acquisitionco”), as the direct parent of OLLC and wholly owned subsidiary of the Company, entered into the Amended and Restated Credit Agreement, providing for a senior secured reserve-based revolving credit facility. The Revolving Credit Facility is guaranteed by the Company and all of its material subsidiaries and secured by substantially all of its assets. The Revolving Credit Facility matures on July 31, 2027, and is a replacement in full of the prior Revolving Credit Facility by and among OLLC, Acquisitionco, the guarantors party thereto, the lenders party thereto and KeyBank National Association, as the administrative agent (as amended, the “Prior Revolving Credit Facility”). The aggregate principal amount of loans outstanding under the Revolving Credit Facility as of June 30, 2024, was $118.0 million. The borrowing base under the facility is $150.0 million with elected commitments of $135.0 million, and, consistent with the Prior Revolving Credit Facility, the Revolving Credit Facility borrowing base will be subject to redetermination on at least a semi-annual basis, primarily based on a reserve engineering report. Certain key terms and conditions under the Revolving Credit Facility include (but are not limited to): ● A maturity date of July 31, 2027; ● The loans shall bear interest at a rate per annum equal to (i) adjusted SOFR or (ii) an adjusted base rate, plus an applicable margin based on a utilization ratio of the lesser of the borrowing base and the aggregate commitments. The applicable margin ranges from 2.00% to 3.00% for adjusted base rate borrowings, and 3.00% to 4.00% for adjusted SOFR borrowings; ● The unused commitments under the Revolving Credit Facility will accrue a commitment fee of 0.50% , payable quarterly in arrears; ● Certain financial covenants, including the maintenance of (i) a net debt leverage ratio not to exceed 3.00 to 1.00, determined as of the last day of each fiscal quarter for the four fiscal-quarter period then ending and (ii) a current ratio of not less than 1.00 to 1.00 , determined as of the last day of each fiscal quarter, in each case commencing with the fiscal quarter ending December 31, 2023; ● Certain events of default, including, without limitation: non-payment; breaches of representations and warranties; non-compliance with covenants or other agreements; cross-default to material indebtedness; judgments; change of control; and voluntary and involuntary bankruptcy; and ● Initial minimum hedging requirements covering 75% of the reasonably projected monthly production of hydrocarbons from proved developed producing reserves for the 24-month period following the effective date of the Revolving Credit Facility (the “First Period”) and (ii) 50% for the 12-month period immediately following the First Period. On May 2, 2024, OLLC completed its spring 2024 borrowing base redetermination, which reaffirmed the borrowing base of $150.0 million with elected commitments of $135.0 million. The next redetermination is expected in the fourth quarter of 2024. As of June 30, 2024, the Company was in compliance with all the financial (current ratio and total leverage ratio) and non-financial covenants associated with the Revolving Credit Facility. Weighted-Average Interest Rates The following table presents the weighted-average interest rates paid, excluding commitment fees, on the Company’s consolidated variable-rate debt obligations for the periods presented: For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revolving Credit Facility 9.35 % 8.67 % 9.37 % 9.31 % Letters of Credit At June 30, 2024, the Company had no letters of credit outstanding. Unamortized Deferred Financing Costs Unamortized deferred financing costs associated with the Company’s Revolving Credit Facility were $3.8 million at June 30, 2024. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity | |
Equity | Note 8. Equity Common Stock The Company’s authorized capital stock includes 250,000,000 shares of common stock, $0.01 par value per share. The following is a summary of the changes in the Company’s common stock issued for the six months ended June 30, 2024: Common Stock Balance, December 31, 2023 39,147,205 Issuance of common stock — Restricted stock units vested 740,597 Shares withheld for taxes (1) (249,855) Balance, June 30, 2024 39,637,947 (1) Represents the net settlement on vesting of restricted stock to satisfy tax withholding requirements. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings (Loss) per Share | |
Earnings (Loss) per Share | Note 9. Earnings (Loss) per Share The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income (loss) $ 7,119 $ 9,816 $ (2,277) $ 362,575 Less: Net income allocated to participating securities 346 433 — 16,422 Basic and diluted earnings available to common stockholders $ 6,773 $ 9,383 $ (2,277) $ 346,153 Common shares: Common shares outstanding — basic 39,629 38,971 39,519 38,833 Dilutive effect of potential common shares — — — — Common shares outstanding — diluted 39,629 38,971 39,519 38,833 Net earnings (loss) per share: Basic $ 0.17 $ 0.24 $ (0.06) $ 8.91 Diluted $ 0.17 $ 0.24 $ (0.06) $ 8.91 |
Long-Term Incentive Plans
Long-Term Incentive Plans | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Incentive Plans | |
Long-Term Incentive Plans | Note 10. Long-Term Incentive Plans On May 15, 2024, the Company’s shareholders approved the Amplify Energy Corp. 2024 Equity Incentive Plan (the “2024 EIP”), which had previously been approved by the board of directors of the Company. No further awards will be granted under the prior Legacy Equity Incentive Plan (“EIP,” and together with the 2024 EIP, the “EIP Plans”). The 2024 EIP provides for awards that can be granted in the form of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance awards, stock awards and other incentive awards. To the extent that an award, other than stock options or stock appreciation rights, under the 2024 EIP has expired or been forfeited or canceled for any reason without having been exercised in full, the unexercised award would then be available again for future grants under the 2024 EIP. The 2024 EIP is administered by the board of directors of the Company. Restricted Stock Units Restricted Stock Units with Service Vesting Condition Restricted stock units with service vesting conditions (“TSUs”) are accounted for as either equity-classified awards or liability-classified awards. The grant-date fair value is recognized as compensation cost on a straight-line basis over the requisite service period and forfeitures are accounted for as they occur. The Company considered its intent and ability to settle awards in cash or shares of stock in determining whether to classify the awards as equity or liability awards. Compensation costs for equity-classified awards are recorded as general and administrative expense. The fair value of liability-classified awards is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general administrative expense and are remeasured at fair value each reporting period. In February 2024, the Company granted contingent cash-settlement awards in the form of TSUs (the “2024 TSUs”). In May 2024, the Company received shareholder approval of the 2024 EIP, which removed the contingent consideration around the 2024 TSUs. As of June 30, 2024, the 2024 TSUs were reclassified as equity awards. The compensation cost related to these awards is determined by the fair value of the award on the modification date. The 2024 TSUs will vest in substantially equal installments over a three-year period. The unrecognized cost associated with the TSUs was $7.0 million at June 30, 2024. The Company expects to recognize the unrecognized compensation cost for these awards over a weighted average period of approximately 2.1 years. The following table summarizes information regarding the TSUs activity for the period presented: ` Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) TSUs outstanding at December 31, 2023 1,331,456 $ 5.77 Granted (2) 711,676 $ 6.30 Forfeited (5,922) $ 5.04 Vested (633,553) $ 5.02 TSUs outstanding at June 30, 2024 1,403,657 $ 6.38 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of TSUs issued for the six months ended June 30, 2024 was $4.5 million based on a grant-date market price ranging from $6.26 per share to $6.30 per share. Restricted Stock Units with Market and Service Vesting Conditions Restricted stock units with market and service vesting conditions (“PSUs”) are accounted for as either equity-classified or liability-classified awards. The grant-date fair value is recognized as compensation cost on a graded-vesting basis. The fair value of the awards is estimated on their grant dates using a Monte Carlo The 2022 and 2023 PSU awards are accounted for as equity-classified awards and were issued with a three-year vesting period beginning on the grant date and ending on the third anniversary of the grant date. The three-year performance period for the 2022 awards is January 1, 2022 through December 31, 2024. The three-year performance period for the 2023 awards is January 1, 2023 through December 31, 2025. In February 2024, the Company granted contingent cash-settlement awards in the form of PSUs (the “2024 PSUs”). In May 2024, the Company received shareholder approval of the 2024 EIP, which removed the contingent consideration around the 2024 PSUs. As of June 30, 2024, the 2024 PSUs are reclassified as equity awards with a three-year vesting period. The compensation cost related to these awards is determined by the fair value of the award on the modification date. The three-year performance period for the 2024 PSUs is January 1, 2024 through December 31, 2026. Compensation costs related to PSU awards are recorded as general and administrative expense. The unrecognized cost associated with PSU awards was $4.2 million at June 30, 2024. The Company expects to recognize the unrecognized compensation cost for PSU awards over a weighted-average period of approximately 2.1 years. The below table reflects the ranges for the assumptions used in the Monte Carlo model for the 2024 PSUs: Date of Grant: February 2024 Modification Date: May 2024 Expected volatility 75.8 % 63.2 % Dividend yield 0.00 % 0.00 % Risk-free interest rate 4.19 % 4.72 % The following table summarizes information regarding the PSU activity for the period presented: Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PSUs outstanding at December 31, 2023 402,701 $ 9.31 Granted (2) 312,843 $ 7.55 Forfeited — $ — Vested (107,044) $ 2.63 PSUs outstanding at June 30, 2024 608,500 $ 9.58 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of PSUs issued for the six months ended June 30, 2024 was $2.4 million based on a calculated fair value price ranging from $2.63 to $8.33 per share. Compensation Expense The following table summarizes the amount of recognized compensation expense associated with the EIP Plans, which are reflected in the accompanying Unaudited Condensed Consolidated Statements of Operations for the periods presented (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Share-based compensation costs TSUs $ 1,272 $ 1,040 $ 2,363 $ 1,938 PSUs 495 300 935 343 $ 1,767 $ 1,340 $ 3,298 $ 2,281 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Leases | Note 11. Leases The Company has leases for office space, warehouse space and equipment in its corporate office and operating regions as well as vehicles, compressors and surface rentals related to its business operations. In addition, the Company has right-of-way leases to operate the San Pedro Bay Pipeline. Most of the Company’s leases, other than its corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of the Company’s leases can be terminated with 30-day prior written notice. The majority of its month-to-month leases are not included as a lease liability in its balance sheet because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less. For the quarter ended June 30, 2024, all of the Company’s leases qualified as operating leases, and it did not have any existing or new leases qualifying as financing leases or variable leases. The Company’s corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, the Company uses an incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, the Company applies a portfolio approach based on the applicable lease terms and the current economic environment. The Company uses a reasonable market interest rate for its office equipment and vehicle leases. For the six months ended June 30, 2024 and 2023, the Company recognized approximately $1.0 million and $1.1 million, respectively, of costs relating to the operating leases in the Unaudited Condensed Consolidated Statements of Operations. Supplemental cash flow information related to the Company’s lease liabilities is included in the table below: For the Six Months Ended June 30, 2024 2023 (In thousands) Non-cash amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 744 $ 948 The following table presents the Company’s right-of-use assets and lease liabilities for the period presented: June 30, December 31, 2024 2023 (In thousands) Right-of-use asset $ 5,012 $ 5,756 Lease liabilities: Current lease liability 1,773 1,737 Long-term lease liability 4,241 5,090 Total lease liability $ 6,014 $ 6,827 The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands): Office and Leased vehicles warehouse and office leases equipment Total 2024 $ 713 $ 377 $ 1,090 2025 1,426 573 1,999 2026 1,203 87 1,290 2027 834 4 838 2028 and thereafter 1,793 — 1,793 Total lease payments 5,969 1,041 7,010 Less: interest 934 62 996 Present value of lease liabilities $ 5,035 $ 979 $ 6,014 The weighted average remaining lease terms and discount rate for all of the Company’s operating leases for the period presented: June 30, 2024 2023 Weighted average remaining lease term (years): Office and warehouse space 4.08 4.46 Vehicles 0.19 0.35 Office equipment 0.01 0.03 Weighted average discount rate: Office and warehouse space 5.44 % 5.01 % Vehicles 1.09 % 1.27 % Office equipment 0.05 % 0.10 % |
Supplemental Disclosures to the
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | Note 12. Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows Accrued Liabilities Current accrued liabilities consisted of the following at the dates indicated (in thousands): June 30, December 31, 2024 2023 Accrued lease operating expense $ 11,072 $ 14,239 Accrued liability - pipeline incident 2,436 9,331 Accrued liability - current portion of pipeline incident settlement 2,000 2,000 Accrued capital expenditures 6,459 8,019 Accrued general and administrative expense 3,409 5,335 Accrued production and ad valorem tax 3,517 3,502 Accrued commitment fee and other expense 2,550 2,626 Operating lease liability 1,773 1,737 Asset retirement obligations 1,576 1,493 Accrued current income tax payable 359 — Accrued interest payable 348 1,792 Other 332 797 Accrued liabilities $ 35,831 $ 50,871 Accounts Receivable Accounts receivable consisted of the following at the dates indicated (in thousands): June 30, December 31, 2024 2023 Oil and natural gas receivables $ 30,186 $ 31,131 Insurance receivable - pipeline incident 1,586 3,571 Joint interest owners and other 6,208 6,042 Total accounts receivable 37,980 40,744 Less: allowance for doubtful accounts (1,674) (1,648) Total accounts receivable, net $ 36,306 $ 39,096 Supplemental Cash Flows Supplemental cash flows for the periods presented (in thousands): For the Six Months Ended June 30, 2024 2023 Supplemental cash flows: Cash paid for interest, net of amounts capitalized $ 6,437 $ 7,155 Cash paid for taxes 1,040 5,050 Noncash investing and financing activities: Increase (decrease) in capital expenditures in payables and accrued liabilities (1,561) 3,294 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions | |
Related Party Transactions | Note 13. Related Party Transactions Related Party Agreements There have been no transactions between the Company and any related person in which the related person had a direct or indirect material interest for the three and six months ended June 30, 2024 and 2023. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Litigation and Environmental As part of our normal business activities, we may be named as defendants in litigation and legal proceedings, including those arising from regulatory and environmental matters. Although the Company is insured against various risks to the extent it believes it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify it against liabilities arising from future legal proceedings. Environmental costs for remediation are accrued based on estimates of known remediation requirements. Such accruals are based on management’s best estimate of the ultimate cost to remediate a site and are adjusted as further information and circumstances develop. Those estimates may change substantially depending on information about the nature and extent of contamination, appropriate remediation technologies and regulatory approvals. Expenditures to mitigate or prevent future environmental contamination are capitalized. Ongoing environmental compliance costs are charged to expense as incurred. In accruing for environmental remediation liabilities, costs of future expenditures for environmental remediation are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable. At June 30, 2024 and December 31, 2023, the Company had no environmental reserves recorded in its Unaudited Condensed Consolidated Balance Sheet. Revenue Payables in Suspense During 2024, the Company determined that it had improperly classified certain non-operated revenue within revenues payable in suspense from 2015 through 2024 and had also retained revenue suspense on assets previously sold in 2018 for which no obligation existed subsequent to the date of close. As a result, the Company recorded an out-of-period adjustment of $2.8 million in 2024 to release such amounts as previously accrued within revenue payables in suspense, of which $2.2 million and $0.6 million included in oil and natural gas revenue Beta Pipeline Incident Please refer to “Note 16. Beta Pipeline Incident” for details. Sinking Fund Trust Agreement Beta Operating Company, LLC (“Beta LLC”), a wholly owned subsidiary, assumed an obligation with a third party to make payments into a sinking fund in connection with the Company’s properties in federal waters offshore Southern California, the purpose of which is to provide funds adequate to decommission the portion of the San Pedro Bay Pipeline that lies within state waters and the surface facilities. Interest earned in the account stays in the account. The obligation to fund ceases when the aggregate value of the account reaches $4.3 million. As of June 30, 2024, the account balance included in restricted investments was approximately $4.5 million. Supplemental Bond for Decommissioning Liabilities Trust Agreement Beta LLC has a decommissioning obligation with BOEM in connection with the Company’s properties in federal waters offshore Southern California. The Company supports its decommissioning obligation with $161.3 million of A-rated surety bonds. In December 2021, the Company entered into two escrow funding agreements with its surety providers to fund interest-bearing escrow accounts on a quarterly basis to reimburse and indemnify the surety providers for any claims arising under the surety bonds related to the decommissioning of our Beta LLC properties. In March 2024, the Company amended one of the escrow funding agreements to decrease the amount funded from $14.8 million per year to $8.0 million per year. There were no changes made to the second escrow agreement. The obligation for these agreements ceases when the total aggregate value of the escrow accounts reaches $172.6 million. The below table outlines the updated funding commitment for these agreements at June 30, 2024 (in thousands): Payment Due by Period Funding commitment Total Remaining 2024 2025 2026 2027 2028 Thereafter Federal escrow fund payments $ 142,728 $ 4,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 106,728 State escrow fund payments 9,770 517 1,034 1,034 1,034 1,034 5,117 Total sinking fund payments $ 152,498 $ 4,517 $ 9,034 $ 9,034 $ 9,034 $ 9,034 $ 111,845 As of June 30, 2024, the Company has funded $20.4 million into the escrow accounts which is reflected in “Restricted investments” on the Unaudited Condensed Consolidated Balance Sheet. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Taxes | |
Income Taxes | Note 15. Income Taxes The Company’s current income tax benefit (expense) was ($0.6) million and ($2.0) million for the three and six months ended June 30, 2024, respectively. The Company’s current income tax benefit (expense) was $6.9 million and ($5.7) million for the three and six months ended June 30, 2023, respectively. The Company’s deferred income tax benefit (expense) was ($2.1) million and $2.6 million for the three and six months ended June 30, 2024, respectively. The Company’s deferred income tax benefit (expense) was less than ($0.1) million and $259.4 million for the three and six months ended June 30, 2023, respectively. The effective tax rates for the three and six months ended June 30, 2024 were 27.4% and 21.3%, respectively. The effective tax rates for the three and six months ended June 30, 2023 were (226.0%) and (233.2%), respectively. The item that had the most significant impact on the difference between the statutory U.S. federal income tax rate of 21% and the effective tax rate for the three months ended June 30, 2024 was higher income earned in the current quarter. The item that had the most significant impact on the difference between the statutory U.S. federal income tax rate of 21% and the effective tax rate for the three and six months ended June 30, 2023, was the release of the valuation allowance. |
Beta Pipeline Incident
Beta Pipeline Incident | 6 Months Ended |
Jun. 30, 2024 | |
Beta Pipeline Incident | |
Beta Pipeline Incident | Note 16. Beta Pipeline Incident On October 2, 2021, contractors operating under the direction of Beta LLC observed an oil sheen on the water approximately four miles off the coast of Newport Beach, California. Beta LLC platform personnel were notified and promptly initiated the Company’s Oil Spill Response Plan. On October 3, 2021, a Unified Command, consisting of the Company, the U.S. Coast Guard and California Department of Fish and Wildlife’s Office of Spill Prevention and Response, was established to respond to the Incident. Reports from the Unified Command’s contracted commercial divers and Remotely Operated Vehicle footage indicated that a 4,000-foot section of the Company’s pipeline had been displaced and that the pipeline had a 13-inch split, running parallel to the pipe, releasing approximately 588 barrels of oil. All operations were suspended and the pipeline was shut-in pending the Company’s receipt of the required regulatory approvals to restart operations, including but not limited to, approval of a written restart plan from the Pipeline and Hazardous Materials Safety Administration (“PHMSA”), Office of Pipeline Safety. On April 10, 2023, the Company announced that it received the required approvals from federal regulatory agencies to restart operations at the Beta Field. Since such date, the pipeline has been operated in accordance with the restart procedures that were reviewed and approved by PHMSA. On December 15, 2021, a federal grand jury in the Central District of California returned a federal criminal indictment against the Company, Beta LLC, and San Pedro Bay Pipeline Company in connection with the Incident. As previously disclosed, state authorities were conducting parallel criminal investigations. The Company reached court-approved agreements to resolve all criminal matters stemming from the Incident. As part of the resolution with the United States, the Company agreed to plead guilty to one count of misdemeanor negligent discharge of oil in violation of the Clean Water Act, and, agreed to pay a fine of approximately $7.1 million in installments over a period of three years, serve a term of four years’ probation and reimburse governmental agencies approximately $5.8 million for their response to this event. Additionally, as part of the resolution with the state of California, the Company agreed to enter a plea of No Contest to six misdemeanor charges, and, as a result, paid a fine in the amount of $4.9 million to be distributed among the state of California, including the State’s Fish and Game Preservation Fund, and Orange County, agreed to serve a one-year term of probation and agreed to certain compliance enhancements to its operations. The Company is currently subject to a number of ongoing investigations related to the Incident by certain federal and state agencies and may be subject to new investigations and proceedings in the future, the results of which may have a material impact on the Company’s business and results of operations and could put pressure on its liquidity position going forward. With respect to PHMSA’s investigation, on April 6, 2023, PHMSA provided the Company notice of PHMSA’s positions regarding “probable violations of the Pipeline Safety Regulations” in connection with the Incident. The Company has responded to the notice and is conferring with PHMSA regarding a resolution. Amplify continues to comply with all regulatory requirements and investigations. The outcomes of these investigations and the nature of any remedies pursued will depend on the discretion of the relevant authorities and may result in regulatory or other enforcement actions, as well as civil liability. The Company, Beta LLC, and San Pedro Bay Pipeline Company were named as defendants in a consolidated putative class action in the United States District Court for the Central District of California, asserting claims against the Company, Beta LLC, San Pedro Bay Pipeline Company, among others. On August 25, 2022, the Company reached an agreement in principle with plaintiffs in the class action to resolve all civil claims against it and its subsidiaries. The settlement of $50.0 million, which also includes certain injunctive relief, has been and will continue to be funded under the Company’s insurance policies. The Court granted final approval of the settlement on April 24, 2023. Separately, on March 1, 2023, the Company announced that the vessels that struck and damaged the pipeline and their respective owners and operators agreed to pay the Company $96.5 million in a settlement. This settlement resolved Amplify’s affirmative claims related to the Incident, and as such, Amplify dismissed its legal claims against those parties. Under the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq. (“OPA 90”), the Company’s pipeline was designated by the U.S. Coast Guard as the source of the oil discharge and therefore the Company is financially responsible for remediation and for certain costs and economic damages as provided for in OPA 90, as well as certain natural resource damages associated with the spill and certain costs determined by federal and state trustees engaged in a joint assessment of such natural resource damages. The Company is currently processing covered claims under OPA 90 as expeditiously as possible. In addition, the Natural Resource Damage Assessment remains ongoing and therefore the extent, timing and cost related to such assessment are difficult to project. While the Company anticipates insurance will reimburse it for expenses related to the Natural Resource Damage Assessment, any potentially uncovered expenses may be material and could impact the Company’s business and results of operations and could put pressure on its liquidity position going forward. Based on presently enacted laws and regulations and currently available facts, the Company estimates that the total costs it has incurred or will incur with respect to the Incident to be between approximately $190.0 million to $210.0 million. The range of total costs is based on the Company’s assumptions regarding (i) settlement of costs associated with certain vendors for response and remediation expenses, (ii) resolution of certain third-party claims, excluding claims with respect to losses, which are not probable or reasonably estimable, and (iii) future claims and lawsuits. While the Company believes it has accurately reflected all probable and reasonably estimable costs incurred in the Company’s Unaudited Consolidated Statements of Operations, these estimates are subject to uncertainties associated with the underlying assumptions. Accordingly, as the Company’s assumptions and estimates may change in future periods based on future events, the Company can provide no assurance that total costs will not materially change in future periods. The Company’s estimates do not include (i) the nature, extent and cost of future legal services that will be required in connection with all lawsuits, claims and other matters requiring legal or expert advice associated with the Incident, (ii) any lost revenue associated with the suspension of operations at Beta, (iii) any liabilities or costs, including regulatory costs, that are not reasonably estimable at this time or that relate to contingencies where the Company currently regards the likelihood of loss as being only reasonably possible or remote and (iv) the costs associated with the permanent repair of the pipeline and the restart of operations at Beta. In accordance with customary insurance practice, the Company maintains insurance policies, including loss of production insurance, against many potential losses or liabilities arising from its operations, which, in addition to the settlement amount disclosed, have covered a material portion of aggregate costs associated with the Incident. However, the Company can provide no assurance that its coverage will continue to adequately protect it against liability from all potential consequences, damages and losses related to the Incident and such view and understanding is preliminary and subject to change. On June 30, 2024, and December 31, 2023, the Company’s insurance receivables were $1.6 million and $3.6 million, respectively. Excluding the costs associated with the resolution of the federal and state matters discussed above, for the six months ended June 30, 2024, the Company incurred response and remediation expenses and legal fees of $1.2 million, which primarily relates to certain legal costs that are not expected to be recovered under an insurance policy and are classified as “Pipeline Incident Loss” on the Company’s Unaudited Condensed Consolidated Statements of Operations. For more information, please see our annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 7, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 7,119 | $ (9,396) | $ 9,816 | $ 352,759 | $ (2,277) | $ 362,575 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of Significant Accounting Policies | |
General | General Amplify Energy Corp. (“Amplify Energy,” “Amplify,” “it” or the “Company”) is a publicly traded Delaware corporation whose common stock is listed on the NYSE under the symbol “AMPY.” The Company operates in one reportable segment that is engaged in the acquisition, development, exploitation and production of oil and natural gas properties. The Company’s management evaluates performance based on one reportable business segment as there are not different economic environments within the operation of the Company’s oil and natural gas properties. The Company’s assets consist primarily of producing oil and natural gas properties located in Oklahoma, the Rockies (“Bairoil”), federal waters offshore Southern California (“Beta”), East Texas/North Louisiana and the Eagle Ford (non-op). Most of the Company’s oil and natural gas properties are located in large, mature oil and natural gas reservoirs. The Company’s properties consist primarily of operated and non-operated working interests in producing and undeveloped leasehold acreage and working interests in identified producing wells. |
Basis of Presentation | Basis of Presentation The Company’s accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the Company’s opinion, the accompanying Unaudited Condensed Consolidated Financial Statements include all adjustments of a normal recurring nature necessary for fair presentation. Material intercompany transactions and balances have been eliminated. The results reported in these Unaudited Condensed Consolidated Financial Statements are not necessarily indicative of results that may be expected for the entire year. Furthermore, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Accordingly, the accompanying Unaudited Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Company’s annual financial statements included in its 2023 Form 10-K. |
Use of Estimates | Use of Estimates The preparation of the accompanying Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include, but are not limited to, oil and natural gas reserves; fair value estimates; revenue recognition; and contingencies and insurance accounting. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue | |
Schedule of revenues disaggregated by stream | For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 (In thousands) Revenues Oil $ 57,789 $ 50,750 $ 115,210 $ 89,566 NGLs 6,565 6,411 14,091 14,196 Natural gas 7,992 10,232 18,367 29,915 Oil and natural gas sales $ 72,346 $ 67,393 $ 147,668 $ 133,677 |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurements of Financial Instruments | |
Schedule of assets and liabilities measured at fair value on recurring basis | Fair Value Measurements at June 30, 2024 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 18,688 $ — $ 18,688 Interest rate derivatives — — — — Total assets $ — $ 18,688 $ — $ 18,688 Liabilities: Commodity derivatives $ — $ 17,385 $ — $ 17,385 Interest rate derivatives — — — — Total liabilities $ — $ 17,385 $ — $ 17,385 Fair Value Measurements at December 31, 2023 Significant Quoted Prices in Significant Other Unobservable Active Market Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Fair Value (In thousands) Assets: Commodity derivatives $ — $ 39,439 $ — $ 39,439 Interest rate derivatives — — — — Total assets $ — $ 39,439 $ — $ 39,439 Liabilities: Commodity derivatives $ — $ 12,365 $ — $ 12,365 Interest rate derivatives — — — — Total liabilities $ — $ 12,365 $ — $ 12,365 |
Risk Management and Derivativ_2
Risk Management and Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Risk Management and Derivative Instruments | |
Schedule of open commodity positions | Remaining 2024 2025 2026 Natural Gas Derivative Contracts: Fixed price swap contracts: Average monthly volume (MMBtu) 775,000 675,000 500,000 Weighted-average fixed price $ 3.73 $ 3.74 $ 3.79 Collar contracts: Two-way collars Average monthly volume (MMBtu) 500,000 500,000 500,000 Weighted-average floor price $ 3.50 $ 3.50 $ 3.55 Weighted-average ceiling price $ 4.10 $ 4.10 $ 4.17 Crude Oil Derivative Contracts: Fixed price swap contracts: Average monthly volume (Bbls) 83,000 78,583 30,917 Weighted-average fixed price $ 74.34 $ 71.79 $ 70.68 Collar contracts: Two-way collars Average monthly volume (Bbls) 102,000 59,500 — Weighted-average floor price $ 70.00 $ 70.00 $ — Weighted-average ceiling price $ 80.20 $ 80.20 $ — |
Schedule of fair value of derivative instruments by the appropriate balance sheet classification | Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives June 30, June 30, December 31, December 31, Type Balance Sheet Location 2024 2024 2023 2023 (In thousands) Commodity contracts Short-term derivative instruments $ 11,726 $ 9,946 $ 21,657 $ 3,988 Interest rate swaps Short-term derivative instruments — — — — Gross fair value 11,726 9,946 21,657 3,988 Netting arrangements (9,946) (9,946) (3,988) (3,988) Net recorded fair value Short-term derivative instruments $ 1,780 $ — $ 17,669 $ — Commodity contracts Long-term derivative instruments $ 6,962 $ 7,439 $ 17,782 $ 8,377 Interest rate swaps Long-term derivative instruments — — — — Gross fair value 6,962 7,439 17,782 8,377 Netting arrangements (6,962) (6,962) (8,377) (8,377) Net recorded fair value Long-term derivative instruments $ — $ 477 $ 9,405 $ — |
Schedule of gains and losses related to derivative instruments | The following table details the gains and losses related to derivative instruments for the periods indicated (in thousands): For the Three Months Ended For the Six Months Ended Statements of June 30, June 30, Operations Location 2024 2023 2024 2023 Commodity derivative contracts Loss (gain) on commodity derivatives $ 1,225 $ (3,798) $ 17,789 $ (18,957) |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Asset Retirement Obligations | |
Schedule of changes in the asset retirement obligations | The following table presents the changes in the asset retirement obligations for the six months ended June 30, 2024 (in thousands): Asset retirement obligations at beginning of period $ 123,494 Liabilities settled (416) Liabilities removed upon sale of wells — Accretion expense 4,157 Revision of estimates 80 Asset retirement obligation at end of period 127,315 Less: Current portion 1,576 Asset retirement obligations - long-term portion $ 125,739 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt. | |
Schedule of consolidated debt obligations | June 30, December 31, 2024 2023 (In thousands) Revolving Credit Facility (1) $ 118,000 $ 115,000 Total long-term debt $ 118,000 $ 115,000 (1) The carrying amount of the Company’s Revolving Credit Facility approximates fair value because the interest rates are variable and reflective of market rates. |
Schedule of weighted-average interest rates paid on variable-rate debt obligations | For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revolving Credit Facility 9.35 % 8.67 % 9.37 % 9.31 % |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity | |
Schedule of summary of changes in common stock issued | Common Stock Balance, December 31, 2023 39,147,205 Issuance of common stock — Restricted stock units vested 740,597 Shares withheld for taxes (1) (249,855) Balance, June 30, 2024 39,637,947 (1) Represents the net settlement on vesting of restricted stock to satisfy tax withholding requirements. |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings (Loss) per Share | |
Schedule of calculation of earnings (loss) per share | The following sets forth the calculation of earnings (loss) per share, or EPS, for the periods indicated (in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net income (loss) $ 7,119 $ 9,816 $ (2,277) $ 362,575 Less: Net income allocated to participating securities 346 433 — 16,422 Basic and diluted earnings available to common stockholders $ 6,773 $ 9,383 $ (2,277) $ 346,153 Common shares: Common shares outstanding — basic 39,629 38,971 39,519 38,833 Dilutive effect of potential common shares — — — — Common shares outstanding — diluted 39,629 38,971 39,519 38,833 Net earnings (loss) per share: Basic $ 0.17 $ 0.24 $ (0.06) $ 8.91 Diluted $ 0.17 $ 0.24 $ (0.06) $ 8.91 |
Long-Term Incentive Plans (Tabl
Long-Term Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity-based Awards | |
Summary of amount of recognized compensation expense | The following table summarizes the amount of recognized compensation expense associated with the EIP Plans, which are reflected in the accompanying Unaudited Condensed Consolidated Statements of Operations for the periods presented (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2024 2023 2024 2023 Share-based compensation costs TSUs $ 1,272 $ 1,040 $ 2,363 $ 1,938 PSUs 495 300 935 343 $ 1,767 $ 1,340 $ 3,298 $ 2,281 |
TSUs | |
Equity-based Awards | |
Summary of information regarding restricted stock unit awards | ` Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) TSUs outstanding at December 31, 2023 1,331,456 $ 5.77 Granted (2) 711,676 $ 6.30 Forfeited (5,922) $ 5.04 Vested (633,553) $ 5.02 TSUs outstanding at June 30, 2024 1,403,657 $ 6.38 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of TSUs issued for the six months ended June 30, 2024 was $4.5 million based on a grant-date market price ranging from $6.26 per share to $6.30 per share. |
PSUs | |
Equity-based Awards | |
Summary of information regarding restricted stock unit awards | Weighted- Average Grant- Number of Date Fair Value Units per Unit (1) PSUs outstanding at December 31, 2023 402,701 $ 9.31 Granted (2) 312,843 $ 7.55 Forfeited — $ — Vested (107,044) $ 2.63 PSUs outstanding at June 30, 2024 608,500 $ 9.58 (1) Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. (2) The aggregate grant-date fair value of PSUs issued for the six months ended June 30, 2024 was $2.4 million based on a calculated fair value price ranging from $2.63 to $8.33 per share. |
2024 PSUs | |
Equity-based Awards | |
Schedule of ranges for the assumptions used in the Monte Carlo model | Date of Grant: February 2024 Modification Date: May 2024 Expected volatility 75.8 % 63.2 % Dividend yield 0.00 % 0.00 % Risk-free interest rate 4.19 % 4.72 % |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases | |
Schedule of Supplemental Cash Flow Information Related to Lease Liabilities | For the Six Months Ended June 30, 2024 2023 (In thousands) Non-cash amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 744 $ 948 |
Schedule of Right-of-Use Assets and Lease Liabilities | June 30, December 31, 2024 2023 (In thousands) Right-of-use asset $ 5,012 $ 5,756 Lease liabilities: Current lease liability 1,773 1,737 Long-term lease liability 4,241 5,090 Total lease liability $ 6,014 $ 6,827 |
Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases | The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands): Office and Leased vehicles warehouse and office leases equipment Total 2024 $ 713 $ 377 $ 1,090 2025 1,426 573 1,999 2026 1,203 87 1,290 2027 834 4 838 2028 and thereafter 1,793 — 1,793 Total lease payments 5,969 1,041 7,010 Less: interest 934 62 996 Present value of lease liabilities $ 5,035 $ 979 $ 6,014 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases | June 30, 2024 2023 Weighted average remaining lease term (years): Office and warehouse space 4.08 4.46 Vehicles 0.19 0.35 Office equipment 0.01 0.03 Weighted average discount rate: Office and warehouse space 5.44 % 5.01 % Vehicles 1.09 % 1.27 % Office equipment 0.05 % 0.10 % |
Supplemental Disclosures to t_2
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | |
Summary of Current Accrued Liabilities | Current accrued liabilities consisted of the following at the dates indicated (in thousands): June 30, December 31, 2024 2023 Accrued lease operating expense $ 11,072 $ 14,239 Accrued liability - pipeline incident 2,436 9,331 Accrued liability - current portion of pipeline incident settlement 2,000 2,000 Accrued capital expenditures 6,459 8,019 Accrued general and administrative expense 3,409 5,335 Accrued production and ad valorem tax 3,517 3,502 Accrued commitment fee and other expense 2,550 2,626 Operating lease liability 1,773 1,737 Asset retirement obligations 1,576 1,493 Accrued current income tax payable 359 — Accrued interest payable 348 1,792 Other 332 797 Accrued liabilities $ 35,831 $ 50,871 |
Summary of accounts receivable | Accounts receivable consisted of the following at the dates indicated (in thousands): June 30, December 31, 2024 2023 Oil and natural gas receivables $ 30,186 $ 31,131 Insurance receivable - pipeline incident 1,586 3,571 Joint interest owners and other 6,208 6,042 Total accounts receivable 37,980 40,744 Less: allowance for doubtful accounts (1,674) (1,648) Total accounts receivable, net $ 36,306 $ 39,096 |
Summary of Supplemental Cash Flows | Supplemental cash flows for the periods presented (in thousands): For the Six Months Ended June 30, 2024 2023 Supplemental cash flows: Cash paid for interest, net of amounts capitalized $ 6,437 $ 7,155 Cash paid for taxes 1,040 5,050 Noncash investing and financing activities: Increase (decrease) in capital expenditures in payables and accrued liabilities (1,561) 3,294 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies. | |
Schedule of funding commitment | The below table outlines the updated funding commitment for these agreements at June 30, 2024 (in thousands): Payment Due by Period Funding commitment Total Remaining 2024 2025 2026 2027 2028 Thereafter Federal escrow fund payments $ 142,728 $ 4,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 106,728 State escrow fund payments 9,770 517 1,034 1,034 1,034 1,034 5,117 Total sinking fund payments $ 152,498 $ 4,517 $ 9,034 $ 9,034 $ 9,034 $ 9,034 $ 111,845 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Detail) | 6 Months Ended |
Jun. 30, 2024 segment | |
Organization and Basis of Presentation | |
Number of reportable business segments | 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) item | Dec. 31, 2023 USD ($) | |
Revenue | ||
Number of revenue streams | item | 3 | |
Accounts receivable attributable to revenue from contracts with customers | $ | $ 30.2 | $ 31.1 |
Revenue - Summary of Revenues D
Revenue - Summary of Revenues Disaggregated (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenues | $ 79,503 | $ 71,971 | $ 155,802 | $ 151,841 |
Oil and natural gas sales | ||||
Revenues: | ||||
Total revenues | 72,346 | 67,393 | 147,668 | 133,677 |
Oil | ||||
Revenues: | ||||
Total revenues | 57,789 | 50,750 | 115,210 | 89,566 |
NGLs | ||||
Revenues: | ||||
Total revenues | 6,565 | 6,411 | 14,091 | 14,196 |
Natural gas | ||||
Revenues: | ||||
Total revenues | $ 7,992 | $ 10,232 | $ 18,367 | $ 29,915 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | $ 18,688 | $ 39,439 |
Total liabilities | 17,385 | 12,365 |
Quoted Prices in Active Market (Level 1) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 18,688 | 39,439 |
Total liabilities | 17,385 | 12,365 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Commodity derivatives | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 18,688 | 39,439 |
Total liabilities | 17,385 | 12,365 |
Commodity derivatives | Quoted Prices in Active Market (Level 1) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 18,688 | 39,439 |
Total liabilities | 17,385 | 12,365 |
Commodity derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives | Quoted Prices in Active Market (Level 1) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis | ||
Total assets | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements of Fi_4
Fair Value Measurements of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Proved oil and natural gas properties | ||||
Assets And Liabilities Carrying Value And Fair Value | ||||
Impairment expense | $ 0 | $ 0 | $ 0 | $ 0 |
Risk Management and Derivativ_3
Risk Management and Derivative Instruments - Additional Information and Commodity Derivatives (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) MMBTU $ / bbl $ / MMBTU bbl | |
Revolving Credit Facility | |
Derivative | |
Amount offset of outstanding under the revolving credit facility | $ | $ 3.2 |
Natural gas derivative fixed price swaps 2024 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 775,000 |
Weighted-average fixed price | 3.73 |
Natural gas derivative two way collar contracts 2024 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 500,000 |
Weighted-average floor price | 3.50 |
Weighted-average ceiling price | 4.10 |
Crude oil derivative fixed price swap 2024 | |
Derivative | |
Average monthly volume (Bbls) | bbl | 83,000 |
Weighted-average fixed price | $ / bbl | 74.34 |
Crude oil derivative two way collars contracts 2024 | |
Derivative | |
Average monthly volume (Bbls) | bbl | 102,000 |
Weighted-average floor price | $ / bbl | 70 |
Weighted-average ceiling price | $ / bbl | 80.20 |
Natural gas derivative fixed price swaps 2025 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 675,000 |
Weighted-average fixed price | 3.74 |
Natural gas derivative two way collar contracts 2025 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 500,000 |
Weighted-average floor price | 3.50 |
Weighted-average ceiling price | 4.10 |
Crude oil derivative fixed price swap 2025 | |
Derivative | |
Average monthly volume (Bbls) | bbl | 78,583 |
Weighted-average fixed price | $ / bbl | 71.79 |
Crude oil derivative two way collars contracts 2025 | |
Derivative | |
Average monthly volume (Bbls) | bbl | 59,500 |
Weighted-average floor price | $ / bbl | 70 |
Weighted-average ceiling price | $ / bbl | 80.20 |
Natural gas derivative fixed price swaps 2026 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 500,000 |
Weighted-average fixed price | 3.79 |
Natural gas derivative two way collar contracts 2026 | |
Derivative | |
Average monthly volume (MMBtu) | MMBTU | 500,000 |
Weighted-average floor price | 3.55 |
Weighted-average ceiling price | 4.17 |
Crude oil derivative fixed price swap 2026 | |
Derivative | |
Average monthly volume (Bbls) | bbl | 30,917 |
Weighted-average fixed price | $ / bbl | 70.68 |
Risk Management and Derivativ_4
Risk Management and Derivative Instruments - Balance Sheet Presentation (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedges, Assets | ||
Cash collateral received | $ 0 | $ 0 |
Cash collateral pledged | 0 | 0 |
Net recorded fair value, Current assets | 1,780 | 17,669 |
Net recorded fair value, Non-Current assets | 0 | 9,405 |
Net recorded fair value, Current liabilities | 0 | 0 |
Net recorded fair value, Non current liabilities | 477 | 0 |
Short-term derivative instruments | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 11,726 | 21,657 |
Asset Derivatives, Netting arrangements | (9,946) | (3,988) |
Liability Derivatives, Gross fair value | 9,946 | 3,988 |
Liability Derivatives, Netting arrangements | (9,946) | (3,988) |
Short-term derivative instruments | Commodity derivatives | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 11,726 | 21,657 |
Liability Derivatives, Gross fair value | 9,946 | 3,988 |
Short-term derivative instruments | Interest rate swaps | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 0 | 0 |
Liability Derivatives, Gross fair value | 0 | 0 |
Long-term derivative instruments | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 6,962 | 17,782 |
Asset Derivatives, Netting arrangements | (6,962) | (8,377) |
Liability Derivatives, Gross fair value | 7,439 | 8,377 |
Liability Derivatives, Netting arrangements | (6,962) | (8,377) |
Long-term derivative instruments | Commodity derivatives | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 6,962 | 17,782 |
Liability Derivatives, Gross fair value | 7,439 | 8,377 |
Long-term derivative instruments | Interest rate swaps | ||
Derivative Instruments and Hedges, Assets | ||
Asset Derivatives, Gross fair value | 0 | 0 |
Liability Derivatives, Gross fair value | $ 0 | $ 0 |
Risk Management and Derivativ_5
Risk Management and Derivative Instruments - (Gains) Losses on Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Loss (gain) on commodity derivative instruments | $ 1,225 | $ (3,798) | $ 17,789 | $ (18,957) |
Commodity derivative contracts | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Loss (gain) on commodity derivative instruments | $ 1,225 | $ (3,798) | $ 17,789 | $ (18,957) |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Asset Retirement Obligations | |||||
Asset retirement obligations at beginning of period | $ 123,494 | ||||
Liabilities settled | (416) | ||||
Liabilities removed upon sale of wells | 0 | ||||
Accretion expense | $ 2,096 | $ 1,975 | 4,157 | $ 3,917 | |
Revision of estimates | 80 | ||||
Asset retirement obligation at end of period | 127,315 | 127,315 | |||
Less: Current portion | 1,576 | 1,576 | $ 1,493 | ||
Asset retirement obligations - long-term portion | $ 125,739 | $ 125,739 | $ 122,001 |
Long-Term Debt - Consolidated d
Long-Term Debt - Consolidated debt obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt | ||
Total long-term debt | $ 118,000 | $ 115,000 |
Revolving Credit Facility | ||
Debt | ||
Revolving Credit Facility | $ 118,000 | $ 115,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | Jul. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | May 02, 2024 USD ($) |
Debt | |||
Letters of credit outstanding | $ 0 | ||
Revolving Credit Facility | |||
Debt | |||
Unamortized deferred financing costs | 3.8 | ||
New Revolving Credit Facility | |||
Debt | |||
Aggregate principal amount of loans outstanding | $ 118 | ||
Borrowing capacity | $ 150 | $ 150 | |
Elected commitments | $ 135 | $ 135 | |
Line of credit facility, unused capacity, commitment fee percentage (in %) | 0.50% | ||
Net debt leverage ratio | 3 | ||
New Revolving Credit Facility | For 24-month period following the effective date of the Revolving Credit Facility | |||
Debt | |||
Debt instrument, percentage of hedging requirement of reasonably anticipated projected production of hydrocarbons (in %) | 75% | ||
New Revolving Credit Facility | For 12-month period immediately following the First Period | |||
Debt | |||
Debt instrument, percentage of hedging requirement of reasonably anticipated projected production of hydrocarbons (in %) | 50% | ||
New Revolving Credit Facility | Minimum | |||
Debt | |||
Current ratio | 1 | ||
New Revolving Credit Facility | Maximum | |||
Debt | |||
Current ratio | 1 | ||
New Revolving Credit Facility | Base rate | Minimum | |||
Debt | |||
Debt instrument, basis spread on variable rate (in %) | 2% | ||
New Revolving Credit Facility | Base rate | Maximum | |||
Debt | |||
Debt instrument, basis spread on variable rate (in %) | 3% | ||
New Revolving Credit Facility | SOFR | Minimum | |||
Debt | |||
Debt instrument, basis spread on variable rate (in %) | 3% | ||
New Revolving Credit Facility | SOFR | Maximum | |||
Debt | |||
Debt instrument, basis spread on variable rate (in %) | 4% |
Long-Term Debt - Weighted-Avera
Long-Term Debt - Weighted-Average Interest Rates (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revolving Credit Facility | ||||
Debt | ||||
Revolving Credit Facility, Weighted-Average Interest Rates | 9.35% | 8.67% | 9.37% | 9.31% |
Equity - Additional Information
Equity - Additional Information (Detail) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Equity | ||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Equity - Summary of Changes in
Equity - Summary of Changes in Common Stock (Detail) | 6 Months Ended | |
Jun. 30, 2024 shares | ||
Equity (Deficit) | ||
Beginning balance | 39,147,205 | |
Ending balance | 39,637,947 | |
Common Stock | ||
Equity (Deficit) | ||
Beginning balance | 39,147,205 | |
Restricted stock units vested | 740,597 | |
Shares withheld for taxes | (249,855) | [1] |
Ending balance | 39,637,947 | |
[1] Represents the net settlement on vesting of restricted stock to satisfy tax withholding requirements. |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings (Loss) per Share | ||||||
Net income (loss) | $ 7,119 | $ (9,396) | $ 9,816 | $ 352,759 | $ (2,277) | $ 362,575 |
Less: Net income allocated to participating securities | 346 | 433 | 0 | 16,422 | ||
Net income (loss) available to common stockholders | $ 6,773 | $ 9,383 | $ (2,277) | $ 346,153 | ||
Common shares: | ||||||
Common shares outstanding - basic (in shares) | 39,629 | 38,971 | 39,519 | 38,833 | ||
Dilutive effect of potential common shares (in shares) | 0 | 0 | 0 | 0 | ||
Common shares outstanding - diluted (in shares) | 39,629 | 38,971 | 39,519 | 38,833 | ||
Net earnings (loss) per share - Basic (in dollars per shares) | $ 0.17 | $ 0.24 | $ (0.06) | $ 8.91 | ||
Net earnings (loss) per share - Diluted (in dollars per shares) | $ 0.17 | $ 0.24 | $ (0.06) | $ 8.91 |
Long-Term Incentive Plans - Add
Long-Term Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity-based Awards | ||||
Share based compensation recognized | $ 1,767 | $ 1,340 | $ 3,298 | $ 2,281 |
TSUs | ||||
Equity-based Awards | ||||
Unrecognized compensation cost | 7,000 | $ 7,000 | ||
Weighted-average period of unrecognized compensation cost | 2 years 1 month 6 days | |||
Vesting period | 3 years | |||
PSUs | ||||
Equity-based Awards | ||||
Unrecognized compensation cost | $ 4,200 | $ 4,200 | ||
Weighted-average period of unrecognized compensation cost | 2 years 1 month 6 days | |||
Fair value estimation method | us-gaap:MonteCarloModelMember | |||
Vesting period | 3 years | |||
PSUs | Maximum | ||||
Equity-based Awards | ||||
Percentage of Potential Payout | 200% | |||
PSUs | Minimum | ||||
Equity-based Awards | ||||
Percentage of Potential Payout | 0% | |||
2022 PSU Awards | ||||
Equity-based Awards | ||||
Performance period | 3 years | |||
2023 PSU Awards | ||||
Equity-based Awards | ||||
Performance period | 3 years | |||
2024 PSUs | ||||
Equity-based Awards | ||||
Vesting period | 3 years | |||
Performance period | 3 years |
Long-Term Incentive Plans - Sum
Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Units (Detail) | 6 Months Ended | |
Jun. 30, 2024 $ / shares shares | ||
TSUs | ||
Equity-based Awards | ||
Outstanding, Number of Units, Beginning Balance | shares | 1,331,456 | |
Granted, Number of Units | shares | 711,676 | [1] |
Forfeited, Number of Units | shares | (5,922) | |
Vested, Number of Units | shares | (633,553) | |
Outstanding, Number of Units, Ending Balance | shares | 1,403,657 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares | $ 5.77 | [2] |
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 6.30 | [1],[2] |
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 5.04 | [2] |
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 5.02 | [2] |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 6.38 | [2] |
Management Incentive Plan | PSUs | ||
Equity-based Awards | ||
Outstanding, Number of Units, Beginning Balance | shares | 402,701 | |
Granted, Number of Units | shares | 312,843 | [3] |
Forfeited, Number of Units | shares | 0 | |
Vested, Number of Units | shares | (107,044) | |
Outstanding, Number of Units, Ending Balance | shares | 608,500 | |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Beginning balance | $ / shares | $ 9.31 | [2] |
Granted, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 7.55 | [2],[3] |
Forfeited, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 0 | [2] |
Vested, Weighted-Average Grant Date Fair Value per Unit | $ / shares | 2.63 | [2] |
Outstanding, Weighted-Average Grant Date Fair Value per unit, Ending balance | $ / shares | $ 9.58 | [2] |
[1] The aggregate grant-date fair value of TSUs issued for the six months ended June 30, 2024 was $4.5 million based on a grant-date market price ranging from $6.26 per share to $6.30 per share. Determined by dividing the aggregate grant-date fair value of awards by the number of awards issued. The aggregate grant-date fair value of PSUs issued for the six months ended June 30, 2024 was $2.4 million based on a calculated fair value price ranging from $2.63 to $8.33 per share. |
Long-Term Incentive Plans - S_2
Long-Term Incentive Plans - Summary of Information Regarding Restricted Stock Units (Parenthetical) (Detail) $ / shares in Units, $ in Millions | Jun. 30, 2024 USD ($) $ / shares |
TSUs | |
Equity-based Awards | |
Aggregate grant date fair value of restricted stock units issued | $ | $ 4.5 |
TSUs | Minimum | |
Equity-based Awards | |
Grant date market price | $ 6.26 |
TSUs | Maximum | |
Equity-based Awards | |
Grant date market price | $ 6.30 |
PSUs | |
Equity-based Awards | |
Aggregate grant date fair value of restricted stock units issued | $ | $ 2.4 |
PSUs | Minimum | |
Equity-based Awards | |
Calculated fair value price | $ 2.63 |
PSUs | Maximum | |
Equity-based Awards | |
Calculated fair value price | $ 8.33 |
Long-Term Incentive Plans - Ass
Long-Term Incentive Plans - Assumptions Used in Monte Carlo Model (Detail) - 2024 PSUs | 1 Months Ended | |
May 31, 2024 | Feb. 29, 2024 | |
Equity-based Awards | ||
Expected volatility | 63.20% | 75.80% |
Dividend yield | 0% | 0% |
Risk-free interest rate | 4.72% | 4.19% |
Long-Term Incentive Plans - S_3
Long-Term Incentive Plans - Summary of Amount of Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity-based Awards | ||||
Share-based compensation costs | $ 1,767 | $ 1,340 | $ 3,298 | $ 2,281 |
TSUs | ||||
Equity-based Awards | ||||
Share-based compensation costs | 1,272 | 1,040 | 2,363 | 1,938 |
PSUs | ||||
Equity-based Awards | ||||
Share-based compensation costs | $ 495 | $ 300 | $ 935 | $ 343 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Lease, option to terminate | leases can be terminated with 30-day prior written notice. | |
Lease termination period with prior written notice | 30 days | |
Operating lease costs | $ 1 | $ 1.1 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Lease Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases | ||
Non-cash amounts included in the measurement of lease liabilities, operating cash flows from operating leases | $ 744 | $ 948 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
Right-of-use asset | $ 5,012 | $ 5,756 |
Current lease liability | 1,773 | 1,737 |
Long-term lease liability | 4,241 | 5,090 |
Total lease liability | $ 6,014 | $ 6,827 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Minimum Lease Payment Obligation Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases | ||
2024 | $ 1,090 | |
2025 | 1,999 | |
2026 | 1,290 | |
2027 | 838 | |
2028 and thereafter | 1,793 | |
Total lease payments | 7,010 | |
Less: interest | 996 | |
Present value of lease liabilities | 6,014 | $ 6,827 |
Office and warehouse leases | ||
Leases | ||
2024 | 713 | |
2025 | 1,426 | |
2026 | 1,203 | |
2027 | 834 | |
2028 and thereafter | 1,793 | |
Total lease payments | 5,969 | |
Less: interest | 934 | |
Present value of lease liabilities | 5,035 | |
Leased vehicles and office equipment | ||
Leases | ||
2024 | 377 | |
2025 | 573 | |
2026 | 87 | |
2027 | 4 | |
2028 and thereafter | 0 | |
Total lease payments | 1,041 | |
Less: interest | 62 | |
Present value of lease liabilities | $ 979 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Terms and Discount Rate of Operating Leases (Detail) | Jun. 30, 2024 | Jun. 30, 2023 |
Office and warehouse space | ||
Leases | ||
Weighted average remaining lease term | 4 years 29 days | 4 years 5 months 15 days |
Weighted average discount rate | 5.44% | 5.01% |
Vehicles | ||
Leases | ||
Weighted average remaining lease term | 2 months 8 days | 4 months 6 days |
Weighted average discount rate | 1.09% | 1.27% |
Office equipment | ||
Leases | ||
Weighted average remaining lease term | 3 days | 10 days |
Weighted average discount rate | 0.05% | 0.10% |
Supplemental Disclosures to t_3
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | ||
Accrued lease operating expense | $ 11,072 | $ 14,239 |
Accrued liability - pipeline incident | 2,436 | 9,331 |
Accrued liability - current portion of pipeline incident settlement | 2,000 | 2,000 |
Accrued capital expenditures | 6,459 | 8,019 |
Accrued general and administrative expense | 3,409 | 5,335 |
Accrued production and ad valorem tax | 3,517 | 3,502 |
Accrued commitment fee and other expense | 2,550 | 2,626 |
Operating lease liability | $ 1,773 | $ 1,737 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Asset retirement obligations | $ 1,576 | $ 1,493 |
Accrued current income tax payable | 359 | 0 |
Accrued interest payable | 348 | 1,792 |
Other | 332 | 797 |
Accrued liabilities | $ 35,831 | $ 50,871 |
Supplemental Disclosures to t_4
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows | ||
Oil and natural gas receivables | $ 30,186 | $ 31,131 |
Insurance receivable - pipeline incident | 1,586 | 3,571 |
Joint interest owners and other | 6,208 | 6,042 |
Total accounts receivable | 37,980 | 40,744 |
Less: allowance for doubtful accounts | (1,674) | (1,648) |
Total accounts receivable, net | $ 36,306 | $ 39,096 |
Supplemental Disclosures to t_5
Supplemental Disclosures to the Unaudited Condensed Consolidated Balance Sheets and Unaudited Condensed Consolidated Statements of Cash Flows - Summary of Supplemental Cash Flows (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental cash flows: | ||
Cash paid for interest, net of amounts capitalized | $ 6,437 | $ 7,155 |
Cash paid for taxes | 1,040 | 5,050 |
Noncash investing and financing activities: | ||
Increase (decrease) in capital expenditures in payables and accrued liabilities | $ (1,561) | $ 3,294 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transactions | ||||
Significant transaction with related party | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 USD ($) agreement | Dec. 31, 2021 USD ($) agreement | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Commitments and Contingencies: | |||||||
Remaining environmental accrued liability recorded | $ 0 | $ 0 | $ 0 | ||||
Total revenues | 79,503,000 | $ 71,971,000 | 155,802,000 | $ 151,841,000 | |||
Sinking fund account maximum value upon which obligation ceases | $ 172,600,000 | 4,300,000 | 4,300,000 | ||||
Restricted Investment - decommissioning of offshore production facilities | 4,500,000 | 4,500,000 | |||||
Beta's decommissioning obligations, full supported by surety bonds | 161,300,000 | 161,300,000 | |||||
Beta's decommissioning obligations, cash | 20,400,000 | 20,400,000 | |||||
Number of escrow funding agreements | agreement | 2 | ||||||
Number of escrow funding agreements amended | agreement | 1 | ||||||
Escrow funded yearly amount | $ 8,000,000 | $ 14,800,000 | |||||
Oil and natural gas sales | |||||||
Commitments and Contingencies: | |||||||
Total revenues | 72,346,000 | 67,393,000 | 147,668,000 | 133,677,000 | |||
Other income | |||||||
Commitments and Contingencies: | |||||||
Total revenues | 7,157,000 | $ 4,578,000 | 8,134,000 | $ 18,164,000 | |||
Prior period adjustment | |||||||
Commitments and Contingencies: | |||||||
Revenue payables in suspense | $ (2,800,000) | $ (2,800,000) | |||||
Error correction, type extensible enumeration | ampy:RevisionOfImproperlyClassifiedCertainNonOperatedRevenueMember | ||||||
Prior period adjustment | Oil and natural gas sales | |||||||
Commitments and Contingencies: | |||||||
Total revenues | $ 2,200,000 | ||||||
Prior period adjustment | Other income | |||||||
Commitments and Contingencies: | |||||||
Total revenues | $ 600,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Funding Commitment (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Sinking fund payments | |
Other Commitments [Line Items] | |
Total | $ 152,498 |
Remaining 2024 | 4,517 |
2025 | 9,034 |
2026 | 9,034 |
2027 | 9,034 |
2028 | 9,034 |
Thereafter | 111,845 |
Federal escrow fund payments | |
Other Commitments [Line Items] | |
Total | 142,728 |
Remaining 2024 | 4,000 |
2025 | 8,000 |
2026 | 8,000 |
2027 | 8,000 |
2028 | 8,000 |
Thereafter | 106,728 |
State escrow fund payments | |
Other Commitments [Line Items] | |
Total | 9,770 |
Remaining 2024 | 517 |
2025 | 1,034 |
2026 | 1,034 |
2027 | 1,034 |
2028 | 1,034 |
Thereafter | $ 5,117 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Line Items] | ||||
Current income tax benefit (expense) | $ (557) | $ 6,853 | $ (1,952) | $ (5,674) |
Deferred income tax benefit (expense) | $ (2,135) | $ (48) | $ 2,568 | $ 259,422 |
Effective tax rate | 27.40% | (226.00%) | 21.30% | (233.20%) |
Statutory tax rate | 21% | 21% | 21% | |
Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred income tax benefit (expense) | $ (100) |
Beta Pipeline Incident (Details
Beta Pipeline Incident (Details) $ in Thousands | Aug. 25, 2022 USD ($) | Dec. 15, 2021 USD ($) item | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 01, 2023 USD ($) | Oct. 03, 2021 item bbl | Oct. 02, 2021 item |
Beta Pipeline Incident | |||||||
Amount agreed to be receivable in a settlement | $ 96,500 | ||||||
Amount receivable | $ 1,586 | $ 3,571 | |||||
Beta Pipeline Incident | |||||||
Beta Pipeline Incident | |||||||
Number of foot section of pipeline displaced with lateral movement | item | 4,000 | ||||||
Number of inch split running parallel to pipe | item | 13 | ||||||
Volume of oil expected to be released | bbl | 588 | ||||||
Settlement amount | $ 50,000 | ||||||
Estimated aggregate costs | 1,200 | ||||||
Beta Pipeline Incident | Accounts Receivable | |||||||
Beta Pipeline Incident | |||||||
Amount receivable | 1,600 | $ 3,600 | |||||
Beta Pipeline Incident | Minimum | |||||||
Beta Pipeline Incident | |||||||
Estimated aggregate costs | 190,000 | ||||||
Beta Pipeline Incident | Maximum | |||||||
Beta Pipeline Incident | |||||||
Estimated aggregate costs | $ 210,000 | ||||||
Beta Pipeline Incident | Pending Litigation | |||||||
Beta Pipeline Incident | |||||||
Estimated litigation liability | $ 7,100 | ||||||
Installment period | 3 years | ||||||
Probation period | 4 years | ||||||
Reimbursement amount payable to government agencies | $ 5,800 | ||||||
Beta Pipeline Incident | CALIFORNIA | |||||||
Beta Pipeline Incident | |||||||
Number of miles off the coast of beach | item | 4 | ||||||
Beta Pipeline Incident | CALIFORNIA | Pending Litigation | |||||||
Beta Pipeline Incident | |||||||
Probation period | 1 year | ||||||
Number of misdemeanor charges | item | 6 | ||||||
Payment of litigation liability | $ 4,900 |