Amplify Energy Corp. (AMPY), an upstream company focused on the acquisition, production, and development of oil and gas properties, has plunged by 32.17% in the premarket trading session. As a result, AMPY stock is trading at $3.90 at the time of this writing. The decline seems to be due to the oil spill in the southern Californian region. On Friday, AMPY stock jumped some 8.08% during regular hours and closed the day at $5.75.
Reason for the decline in AMPY stock
Today, AMPY announced that on 2nd October 2021, one of its subsidiaries, namely Beta Offshore, observed oil sheen about 4 miles off the coast in southern California. Consequently, it notified coast guards regarding that and initiated its oil spill and prevention and response plan. The company said that it had sent a remotely operated vehicle (ROV) to the site to investigate and besides, to attempt to confirm the releasing point. As a precaution, the company said that all of its production and pipeline operations in Beta Field have been temporarily shut down. Amplify Energy said that it is working cooperatively with Coast Guards, the California Department of Fish, and Wildlife’s Office of Spill Prevention and Response (CDFW-OSPR).
AMPY Q2 2021 financials
On 4th August, AMPY reported the quarterly results for the second quarter of the fiscal year 2021, which ended 30th June 2021. According to the details, the company generated $80.39 million in terms of total revenue. During the first quarter of 2021, the total revenue stood at $72.46 million. The costs and expenses bore by the company during the period stood at $117.74 million. During the first quarter of 2021, the total costs and expenses stood at $88.65 million. The net loss for the period stood at $35.02 million. For the first quarter of 2021, the net loss remained at $19.32 million. The basic and diluted loss per share for the period stood at $0.92. For the first quarter of 2021, the basic and diluted loss per share stood at $0.51. The total assets in possession of the company stood at $395.32 million on 30th June. The total liabilities remained at $482.70 million.
Future for AMPY?
Because AMPY is an energy-related stock, its price has gained a lot of momentum during the last few months, based on subsidence in the effects of a pandemic on the economy. The stock has increased by 54% during the last month, and 634% during the last 12 months. Analysts hope that during the next fiscal, the economies around the world would need more and more energy and reach the pre-pandemic economic level, energy-related stock, including AMPY, could be a major beneficiary of it.
