We provide evidence that a learning activity called Energy Theater engages learners with key conceptual issues in the learning of energy, including disambiguating matter flow and energy flow and theorizing mechanisms for energy transformation. A participationist theory of learning, in which learning is indicated by changes in speech and behavior, supports ethnographic analysis of learners' embodied interactions with each other and the material setting. We conduct detailed analysis to build plausible causal links between specific features of Energy Theater and the conceptual engagement that we observe. Disambiguation of matter and energy appears to be promoted especially by the material structure of the Energy Theater environment, in which energy is represented by participants, while objects are represented by areas demarcated by loops of rope. Theorizing mechanisms of energy transformation is promoted especially by Energy Theater's embodied action, which necessitates modeling the time ordering of energy transformations. (Contains 2 figures and 2 video images.)