Amplify Energy stock plunges after California oil spill

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WSJ.com: Markets

Oil washed up in Huntington Beach, California on Sunday.


Photo:

Mario Tama / Getty Images

from
Colin Kellaher

Updated October 4, 2021 10:15 a.m. ET

Shares from Amplify Energy Corp.

AMPY -44.35%

lost almost half of its value on Monday after a major oil spill occurred over the weekend on the company’s platform off the coast of Orange County, California.

California officials tried Sunday to contain the damage by spilling an estimated 126,000 gallons that stretched from Newport Beach to Huntington Beach, a distance of about 6 miles.

Amplify, a Houston-based oil and natural gas company, said it had shut down all of its manufacturing and pipeline operations in the area as a precaution, adding that it sent a remote-controlled vehicle to investigate the well and try to close the well confirm the release.

Amplify stock fell 45% to $ 3.18 in Monday morning trading. The stock hit a low of $ 2.79 at the start of the session.

The company notified the Coast Guard of the spill Saturday morning after workers found a sheen in the water during a pipe inspection, said Martyn Willsher, chief executive of Amplify Energy. The offshore platform receives oil from around 70 wells and then sends it to a local refinery.

Local health officials urged residents of the affected area not to walk, swim, or surf near the affected beaches and wetlands. They also advised people not to touch oil on beaches or try to save wildlife affected by the oil.

The crews ran to purify an estimated 126,000 gallons of crude oil that had leaked from an oil processing platform off the coast of Southern California.

Write to Colin Kellaher at colin.kellaher@wsj.com

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