AMPY Stock: Why It Substantially Increased Today

By Amit Chowdhry ● Oct 7, 2021
  • The stock price of Amplify Energy Corp (NYSE: AMPY) increased by over 17% today. This is why it happened.

The stock price of Amplify Energy Corp (NYSE: AMPY) increased by over 17% today. Investors appear to be responding positively to reports that there is a better understanding in the recent crude oil spill into the ocean off Orange County.

According to the Coast Guard, the preliminary reports indicate that an anchor might have hooked the pipeline and tore the metal open. Around 4,000 feet of the pipeline was moved 105 feet from its original position. And divers found a 13-inch split in the line, which is likely the source of the oil release.

The volume of oil that was leaked is likely going to be revised downward. And around 5,000 gallons were already recovered. Currently, there is a near record backup of ships that are waiting by Southern California ports. And with a high number of vessels waiting to unload containers, the more of a risk that something would occur according to Paul Blomerus, Executive Director of Clear Seas Centre for Responsible Marine Shipping via Bloomberg.

During a briefing, Martyn Willsher, chief executive of Amplify Energy, pointed out that the pipeline was pulled like a bowstring.

“It is a 16-inch steel pipeline that’s a half inch thick and covered in an inch of concrete, and for it to be moved 105 feet is not common,” explained Willsher.

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