AMPY Stock: Why It Substantially Fell

By Amit Chowdhry ● Oct 5, 2021
  • The stock price of Amplify Energy Corp (NYSE: AMPY) fell by over 40% in the previous trading session. This is why it happened.

The stock price of Amplify Energy Corp (NYSE: AMPY) fell by over 40% in the previous trading session. Investors are responding negatively to Amplify Energy’s involvement in an oil spill off the coast of Orange County, California — which released an estimated 126,000 gallons of oil.

The oil spill had stretch about six miles along the coast of California. Amplify ended up having to shutdown its California operations in order to limit the spill. And the Coast Guard led an operation to find the source. Residents were asked not to swim in the area, rescue wildlife, or touch the oil.

Based in Houston, Amplify was formed in 2019 following a merger with an oil company called Midstates Petroleum.

Amplify produces around 25,000 barrels of oil per day. Beta Operating Co. is an Amplify subsidiary that was operating the platform where the spill had occurred. And Beta Operating was fined $85,000 by federal regulators for safety-related issues in 2013 and 2014. 

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.