Oil washed up on Huntington Beach, Calif., on Sunday.
Photo: Mario Tama/Getty Images
Shares of Amplify Energy Corp. AMPY -46.05% lost nearly half their value Monday after a major oil spill at the company’s platform off the coast of Orange County, Calif., over the weekend.
California officials on Sunday were trying to limit damage from the spill of an estimated 126,000 gallons that extended from Newport Beach to Huntington Beach, a distance of about 6 miles.
Amplify, a Houston-based oil and natural-gas company, said it has shut down all of its production and pipeline operations in the area as a precautionary measure, adding that it has sent a remotely operated vehicle to investigate and attempt to confirm the source of the release.
Amplify shares fell 45% to $3.18 in Monday morning trading. The stock hit a low of $2.79 earlier in the session.
The company notified the Coast Guard about the spill Saturday morning after workers conducting a line inspection noticed a sheen in the water, Amplify Energy Chief Executive Martyn Willsher said. The offshore platform receives oil from about 70 wells and then sends it to a local refinery.
Local health officials told residents in the affected area to avoid walking, swimming or surfing near the affected beaches and wetlands. They also advised people to avoid touching any oil on beaches or attempting to rescue any wildlife affected by the oil.
Write to Colin Kellaher at [email protected]
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