Amplify Energy
| Company type | Public |
|---|---|
| Industry | Oil exploration and production |
| Headquarters | Houston , United States |
Key people | Martyn Willsher (CEO) |
| Products | Oil, natural gas |
Number of employees | 230 |
Amplify Energy Corp is an oil exploration and production company based in Houston, Texas. It is publicly traded on the and has a workforce of about 230 employees.[1]
Wells
Amplify's operations extend across Texas and the Western region, overseeing roughly 1,000 oil wells alongside 1,500 natural gas wells. The company makes extensive use of fracking, incorporating water injection methods in its Bairoil, Wyoming projects,[1] and reintroduces significant amounts of brine water into wells located in Oklahoma. Restrictions have been placed on Amplify’s wastewater injection permits due to seismic events associated with brine reinjection. In 2017, the company also performed hydraulic fracturing on two wells situated in Panola County.[2][3]
Beta field platforms
Through its Beta Offshore division (Beta Operating Company LLC, registered in Delaware), Amplify holds ownership of three oil platforms near Los Angeles, California: Elly, Ellen, and Eureka. The Elly and Ellen platforms are interconnected; Ellen and Eureka possess production wells and are linked by pipeline to Elly. At the Elly platform, oil, gas, and water are separated; the gas is utilized as fuel while oil is transported via a 16-inch pipeline to the Port of Long Beach. The pipeline, extending 17.5 miles, is owned and operated by San Pedro Bay Pipeline Company, which Amplify owns according to its 2019 Form 10-K. Hydraulic fracturing is neither practiced nor permitted in the Beta field due to prohibitions or stringent restrictions imposed by court orders from the Bureau of Ocean Energy Management. The installation of the Elly platform dates back to 1980 as recorded by the U.S. Bureau of Safety and Environmental Enforcement.
2021 oil spill, pipeline drag
In October 2021, an extensive oil spill occurred off the Southern California coastline, releasing between approximately 25,000 and 144,000 gallons of oil and contaminating beaches such as Huntington Beach and Newport Beach. Initial volume estimates were progressively adjusted downward; CNN later reported a figure near 131,000 gallons. The spill inflicted environmental harm evidenced by wildlife fatalities washing up along shorelines.
Amplify’s CEO Martyn Willsher acknowledged that the company had owned the affected pipeline for nearly nine years and pledged comprehensive cleanup efforts. The National Transportation Safety Board initiated an investigation to determine the spill’s origin. Media outlets criticized Amplify for a delay of about 15 hours in alerting federal authorities after the spill was detected.
In November 2021, investigations by the U.S. Coast Guard revealed that at least one container vessel—the Beijing, chartered by COSCO—was involved in an anchor-dragging event on January 25, 2021, amid severe weather conditions impacting Los Angeles and Long Beach ports. The MSC Danit was also implicated; owners and operators of both ships were designated parties of interest. The anchors reportedly dragged along approximately 100 feet of underwater pipeline on the seabed, causing damage to its concrete casing. Prior inspections conducted in October 2020 had found no damage; marine growth on the pipeline indicates that harm occurred several months before discovery.
In August 2022, Amplify announced its intention to plead guilty to misdemeanor charges related to negligent discharge of oil from this incident. The company agreed to pay fines totaling around $7 million over a three-year period and reimburse nearly $6 million to governmental agencies, subject to court approval. Additionally, as part of the settlement agreement, Amplify will implement an upgraded leak detection system.
Oil Sheen Incident Near Platform in 2024
In March 2024, an oil sheen extending approximately 2.5 miles was identified about 1.5 miles offshore from Huntington Beach. The response involved multiple agencies, including the U.S. Coast Guard, California Department of Fish and Wildlife, local lifeguards, and the Orange County Sheriff’s Office. Early investigations suggested a nearby platform might be responsible. Following reports of the spill, Amplify Energy’s stock experienced a significant decline, closing down 17.7% on March 8 without immediate rebound. The company asserted there was "no indication that this sheen is related to our operations" and committed to full cooperation with authorities.
Around 85 gallons of oil were recovered, accounting for roughly 85% of the visible sheen before adverse weather conditions hindered further cleanup efforts. By the next day, the oil slick had largely dissipated. Cleanup crews addressed tar deposits discovered on the beach, though no beach closures were necessary. One grebe affected by oil was rescued, and investigations into the source continued under Coast Guard supervision. Coastal cities nearby—such as Newport Beach, Long Beach, and Laguna Beach—closely monitored their shorelines for impacts.
Chemical analysis suggested the oil matched natural seepage originating from the seabed rather than leaks from vessels or drilling platforms. While test results were inconclusive, the Coast Guard reported no evidence linking the sheen to local oil rigs. Within days, Amplify Energy’s share price recovered most of its initial losses, reflecting restored investor confidence following the clarification of circumstances.
History
Amplify Energy emerged as the successor to Memorial Production Partners, which filed for Chapter 11 bankruptcy in 2017 and traded under a different ticker symbol. Ken Mariani, previously with EnerVest, assumed the role of Amplify’s CEO in May 2018. In 2019, Amplify merged with Midstates Petroleum, a Tulsa-based firm that had undergone bankruptcy proceedings in 2016.
During Memorial Production Partners’ bankruptcy restructuring in 2017, its debt was reduced from $1.3 billion to $430 million. Memorial originated from the NGP private equity fund portfolio; its Beta field was initially discovered by Royal Dutch Shell in 1976. The Huntington Beach field itself was first identified by Standard Oil Co. in 1920 and has yielded over one billion barrels of oil, ranking it historically as the United States’ twelfth largest oil field.
David J. Sambrooks, former CEO of Midstates Petroleum, received total compensation of $5.3 million in 2019—including $3.5 million in severance—$1.1 million in 2018, and $2.7 million in 2017. Scott C. Weatherholt, serving as EVP and general counsel, earned $3 million in 2019 (including $1.9 million severance), $1.6 million in 2018, and $416,000 in 2017.
Prior to merging, Amplify repurchased $1.3 million worth of stock in early 2019 after approving a $25 million buyback program in 2018. Following the merger, an additional $25 million stock repurchase was authorized; by late 2019 approximately $24.9 million had been reacquired.
Amplify reported gross revenues of $275.6 million in 2019, down from $340 million in the previous year. That year it paid dividends totaling $15.9 million. The company maintained a revolving credit facility with Bank of Montreal, initially set at $450 million but averaging borrowings around $265 million; this credit line was reduced to $285 million by mid-2020 and further adjusted to approximately $260 million monthly draws—with $264 million outstanding as of June.
Fir Tree Capital Management, a hedge fund founded by Jeff Tannenbaum, holds an approximate 27.7% stake in Amplify’s shares; Brigade Capital Management owns about 10.7%.
In terms of customers during 2019, Amplify’s largest clients included Phillips 66 (27%), Sinclair Oil (21%), and BP America (13%).
CEO Ken Mariani retired on April 1, 2020; CFO Martyn Willsher was appointed interim CEO.
On April 20, 2020, the New York Stock Exchange notified Amplify regarding possible delisting due to low stock prices; compliance was regained by June.
During the COVID-19 pandemic period, Amplify secured a federally guaranteed loan amounting to $5.5 million on April 24 under the Paycheck Protection Program (PPP). This loan attracted scrutiny given Amplify’s public company status and recent stock repurchases totaling $26 million; nonetheless, management expected most of this PPP loan would be forgiven according to program guidelines.
Leadership
- Martyn Willsher has held the position of CEO since January 21, 2021, after serving as interim CEO from April 3, 2020, until January 2021. Prior to that, he was the CFO from April 27, 2018, to January 19, 2021. His base salary for 2020 was $350,000.
- Ken Mariani served as CEO between 2018 and 2020. His remuneration package comprised a $600,000 salary, potential bonuses up to $600,000 in cash and stock, and the vesting of 250,000 shares. In 2019, he earned a cash bonus of $334,000.
- William Scarff acted as CEO from 2016 through 2018.
- John Weinzierl was the company’s CEO from 2011 until 2016.
Board of directors
As of October 5, 2021: Christopher W. Hamm, Chairman Patrice Douglas Randal T. Klein Evan S. Lederman David H. Proman Todd R. Snyder Martyn Willsher, CEO
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