Amplify Energy Announces Second Quarter 2024 Results, Beta Drilling Results and Updated Guidance
Amplify Energy (NYSE: AMPY) reported its Q2 2024 results, highlighting several key metrics and updates. The company achieved an average production of 20.3 MBoepd and generated $15.4 million in operating cash. Net income stood at $7.1 million while Adjusted EBITDA reached $30.7 million, bolstered by a $7 million prior-period adjustment.
Free cash flow was $9.2 million, and net debt totaled $117.5 million. The A50 well at Beta was drilled and completed ahead of schedule, achieving a peak oil rate of 730 Bopd and expected to pay out in 4 months. The company updated its 2024 guidance due to better-than-expected results and participation in non-operated wells in East Texas and Eagle Ford. Bairoil asset bids are under evaluation for potential sale or monetization.
Company revenues were $72.3 million before derivatives, with realized gains of $3.7 million. Lease operating expenses decreased to $36.3 million, while capital investments for the quarter were $18 million, primarily focused on Beta development.
Amplify Energy (NYSE: AMPY) ha riportato i risultati del secondo trimestre 2024, evidenziando diversi indicatori chiave e aggiornamenti. L'azienda ha raggiunto una produzione media di 20,3 MBoepd e ha generato $15,4 milioni di cassa operativa. Il reddito netto si è attestato a $7,1 milioni, mentre l'EBITDA rettificato ha raggiunto $30,7 milioni, supportato da un'aggiustamento del periodo precedente di $7 milioni.
Il flusso di cassa libero è stato di $9,2 milioni, e il debito netto ha totalizzato $117,5 milioni. Il pozzo A50 a Beta è stato perforato e completato in anticipo, raggiungendo un tasso di produzione di picco di 730 Bopd e previsto per il pagamento in 4 mesi. L'azienda ha aggiornato le stime per il 2024 grazie a risultati migliori del previsto e alla partecipazione in pozzi non operati in East Texas e Eagle Ford. Le offerte per gli asset di Bairoil sono in fase di valutazione per una potenziale vendita o monetizzazione.
I ricavi dell'azienda sono stati di $72,3 milioni prima delle derivati, con guadagni realizzati di $3,7 milioni. Le spese operative per locazione sono diminuite a $36,3 milioni, mentre gli investimenti in capitale per il trimestre sono stati di $18 milioni, principalmente focalizzati sullo sviluppo di Beta.
Amplify Energy (NYSE: AMPY) informó sobre sus resultados del segundo trimestre de 2024, resaltando varias métricas clave y actualizaciones. La compañía alcanzó una producción promedio de 20,3 MBoepd y generó $15,4 millones en efectivo operativo. El ingreso neto fue de $7,1 millones, mientras que el EBITDA ajustado alcanzó $30,7 millones, respaldado por un ajuste de periodo anterior de $7 millones.
El flujo de caja libre fue de $9,2 millones, y la deuda neta totalizó $117,5 millones. El pozo A50 en Beta fue perforado y completado antes de lo previsto, logrando una tasa de producción máxima de 730 Bopd y se espera que se recupere en 4 meses. La compañía actualizó su orientación para 2024 debido a resultados mejores de lo esperado y participación en pozos no operados en East Texas y Eagle Ford. Las ofertas de activos de Bairoil están siendo evaluadas para una posible venta o monetización.
Los ingresos de la empresa fueron de $72,3 millones antes de derivados, con ganancias realizadas de $3,7 millones. Los gastos operativos de leasing disminuyeron a $36,3 millones, mientras que las inversiones de capital para el trimestre fueron de $18 millones, centradas principalmente en el desarrollo de Beta.
엠플리파이 에너지(뉴욕증권거래소: AMPY)는 2024년 2분기 결과를 보고하며 여러 주요 지표와 업데이트를 강조했습니다. 회사는 평균 20.3 MBoepd의 생산을 달성하였고, $1540만의 운영 현금을 생성하였습니다. 순이익은 $710만에 달했으며 조정 EBITDA는 $3070만에 도달했습니다. 이는 이전 기간 조정에 의해 $70만이 증가한 것입니다.
자유현금흐름은 $920만이었고, 순부채는 $1억1750만에 달했습니다. 베타의 A50 우물이 예정보다 일찍 시추 및 완료되어 최대 일일 생산량 730 Bopd를 달성하였으며, 4개월 내에 수익을 가져올 것으로 예상됩니다. 회사는 예상보다 좋은 성과와 동부 텍사스 및 이글 포드에서의 비운영 우물 참여로 인해 2024년 가이던스를 업데이트했습니다. 바이로일 자산에 대한 입찰이 잠재적인 판매 또는 수익화 평가 중입니다.
회사의 수익은 파생상품 이전에 $7230만이었고, 실현된 이익은 $370만이었습니다. 임대 운영 비용은 $3630만으로 감소하였고, 분기 동안 자본 투자는 $1800만으로, 주로 베타 개발에 집중되었습니다.
Amplify Energy (NYSE: AMPY) a publié ses résultats du deuxième trimestre 2024, soulignant plusieurs indicateurs clés et mises à jour. L'entreprise a réalisé une production moyenne de 20,3 MBoepd et généré 15,4 millions de dollars de flux de trésorerie d'exploitation. Le revenu net s'est élevé à 7,1 millions de dollars, tandis que l'EBITDA ajusté a atteint 30,7 millions de dollars, soutenu par un ajustement de période précédente de 7 millions de dollars.
Le flux de trésorerie disponible était de 9,2 millions de dollars, et la dette nette a totalisé 117,5 millions de dollars. Le puits A50 à Beta a été foré et achevé avant le calendrier, atteignant un taux de production de pointe de 730 Bopd et devant amortir en 4 mois. L'entreprise a mis à jour ses prévisions pour 2024 en raison de résultats meilleurs que prévu et de sa participation à des puits non opérés au Texas de l'Est et à Eagle Ford. Les offres pour les actifs Bairoil sont actuellement en évaluation pour une éventuelle vente ou monétisation.
Les revenus de l'entreprise s'élevaient à 72,3 millions de dollars avant dérivés, avec des gains réalisés de 3,7 millions de dollars. Les dépenses d'exploitation locatives ont diminué pour atteindre 36,3 millions de dollars, tandis que les investissements en capital pour le trimestre se sont élevés à 18 millions de dollars, principalement axés sur le développement de Beta.
Amplify Energy (NYSE: AMPY) hat seine Ergebnisse für das 2. Quartal 2024 veröffentlicht und mehrere wichtige Kennzahlen und Updates hervorgehoben. Das Unternehmen erzielte eine durchschnittliche Produktion von 20,3 MBoepd und generierte 15,4 Millionen US-Dollar an Betriebscash. Der Nettogewinn betrug 7,1 Millionen US-Dollar, während das angepasste EBITDA 30,7 Millionen US-Dollar erreichte, gestützt durch eine Anpassung des Vorzeitraums in Höhe von 7 Millionen US-Dollar.
Der freie Cashflow betrug 9,2 Millionen US-Dollar, und die Nettoverschuldung belief sich auf 117,5 Millionen US-Dollar. Der A50-Brunnen in Beta wurde vorzeitig gebohrt und abgeschlossen und erreichte eine maximale Ölrate von 730 Bopd, wobei eine Amortisation innerhalb von 4 Monaten erwartet wird. Das Unternehmen aktualisierte seine Prognose für 2024 aufgrund besserer als erwarteter Ergebnisse und der Beteiligung an nicht betriebenen Brunnen in Osttexas und Eagle Ford. Angebote für Bairoil-Assets werden derzeit hinsichtlich eines möglichen Verkaufs oder einer Monetarisierung bewertet.
Die Einnahmen des Unternehmens beliefen sich vor Derivaten auf 72,3 Millionen US-Dollar, mit realisierten Gewinnen von 3,7 Millionen US-Dollar. Die Betriebskosten für Mietverhältnisse sanken auf 36,3 Millionen US-Dollar, während die Investitionen in Kapital für das Quartal 18 Millionen US-Dollar betrugen, die sich hauptsächlich auf die Entwicklung von Beta konzentrierten.
- Generated net income of $7.1 million, reversing a prior quarter loss of $9.4 million.
- Achieved Adjusted EBITDA of $30.7 million, a $5.8 million increase from Q1.
- Free cash flow increased to $9.2 million.
- Successful A50 well at Beta exceeded projections with a peak IP30 oil rate of 730 Bopd.
- Updated 2024 guidance due to strong Q2 results and new drilling activities.
- Revenue net of realized hedges decreased by $3.6 million compared to Q1.
- Net debt increased slightly to $117.5 million.
- Average daily production remained flat at 20.3 MBoepd.
- One-time accounting adjustment significantly influenced Adjusted EBITDA.
Insights
Amplify Energy's Q2 2024 results show positive momentum with improved financial metrics. Key highlights include:
- Net income of
$7.1 million , up from a$9.4 million loss in Q1 - Adjusted EBITDA of
$30.7 million , a23.3% increase from Q1 - Free cash flow of
$9.2 million , up$6.9 million from Q1
The successful A50 well at Beta, with a 730 Bopd peak IP30 rate and projected 4-month payback, demonstrates strong operational execution. The
Amplify's Q2 results highlight solid operational performance across its diverse asset base. The Beta field's A50 well success is particularly noteworthy, showcasing the untapped potential in their offshore California assets. The decision to participate in non-operated wells in East Texas and Eagle Ford demonstrates a balanced approach to portfolio management.
The company's focus on the Beta electrification project aligns with industry trends towards emissions reduction. This proactive stance on environmental compliance could enhance Amplify's long-term sustainability and market perception.
The ongoing evaluation of Bairoil asset monetization options indicates a strategic review of the portfolio. This could lead to a more focused asset base or additional capital for high-return projects, potentially improving overall company performance.
Amplify's Q2 performance and updated guidance present a positive outlook for investors. The company's ability to generate free cash flow consistently (16 out of 17 quarters) is a strong selling point in the current market environment where investors prioritize capital discipline.
The success at Beta and participation in non-operated wells demonstrate a balanced growth strategy, potentially appealing to both value and growth-oriented investors. The company's low leverage (1.2x Net Debt to LTM Adjusted EBITDA) provides financial flexibility for future opportunities or shareholder returns.
Investors should monitor the Bairoil asset monetization process, as a successful transaction could be a catalyst for stock appreciation. The market may also react positively to continued strong well results from Beta, potentially leading to a re-rating of Amplify's stock if the development program continues to exceed expectations.
HOUSTON, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the second quarter of 2024.
Key Highlights
- During the second quarter of 2024, the Company:
- Achieved average total production of 20.3 MBoepd
- Generated net cash provided by operating activities of
$15.4 million and net income of$7.1 million - Delivered Adjusted EBITDA of
$30.7 million - Generated
$9.2 million of free cash flow
- Drilled and completed the A50 development well at Beta. The A50 well, which came on-line in early June, achieved a peak IP30 oil rate of approximately 730 Bopd (gross) and exceeded Company projections. Amplify expects the well to pay out in approximately 4 months.
- The Company is updating its 2024 guidance primarily as the result of better than expected second quarter results and the Company’s election to participate in non-operated development wells in East Texas and the Eagle Ford
- Amplify received multiple bids for both an outright sale and partial monetization of its Bairoil asset in Wyoming. The Company, working with its advisors, continues to evaluate these proposals and will provide updates as they become available
- As of June 30, 2024, net debt was
$117.5 million , consisting of$118.0 million outstanding under the revolving credit facility and$0.5 million of cash and cash equivalents- Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x1
(1) Net debt as of June 30, 2024, and LTM Adjusted EBITDA as of the second quarter of 2024
Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “Amplify again delivered strong operating and financial results for the second quarter, while also continuing the tremendous progress on our key strategic initiatives. At Beta, we successfully drilled and completed the A50 well on time and under budget. The 30-day peak IP rate of 730 barrels of oil per day exceeded our expectations, and based on early results and current commodity prices, we anticipate the A50 will pay out in approximately four months. The performance of the A50 is a testament to the team’s exceptional planning and execution, which we intend to capitalize on for our future development wells. We are scheduled to drill two wells in the third quarter on the Eureka platform before returning to the Ellen platform later this year. We believe a successful development program at Beta has the potential to materially increase cash flows and improve the long-term value of the asset.”
Mr. Willsher further stated, “We continue to evaluate proposals and options regarding the monetization of our Wyoming assets. While we are encouraged by the interest received to date, the Company is committed to pursuing the path it believes will maximize shareholder value.”
Mr. Willsher concluded, “As I have indicated previously, I am confident that the initiatives Amplify is actively pursuing this year can be transformative for the Company. The progress we have made through the first half of 2024 has reinforced our confidence in our ability to execute on these initiatives and drive increased shareholder value.”
Key Financial Results
During the second quarter of 2024, the Company reported net income of approximately
Amplify generated
Free cash flow was
| Second Quarter | First Quarter | |||||
| $ in millions | 2024 | 2024 | ||||
| Net income (loss) | ( | ) | ||||
| Net cash provided by operating activities | ||||||
| Average daily production (MBoe/d) | 20.3 | 20.2 | ||||
| Total revenues excluding hedges | ||||||
| Adjusted EBITDA (a non-GAAP financial measure) | ||||||
| Total capital | ||||||
| Free Cash Flow (a non-GAAP financial measure) | ||||||
Revolving Credit Facility
As of June 30, 2024, Amplify had net debt of
Corporate Production and Pricing
During the second quarter of 2024, average daily production was approximately 20.3 Mboepd, which was in-line with the previous quarter. The Company benefitted from a one-time prior-period accounting adjustment that added approximately 1.2 Mboepd, which was offset by multiple flooding events in East Texas that limited access to wells and resulted in prolonged shut-ins. The Company’s product mix for the quarter was
| Three Months | Three Months | ||||||||
| Ended | Ended | ||||||||
| June 30, 2024 | March 31, 2024 | ||||||||
| Production volumes - MBOE: | |||||||||
| Bairoil | 301 | 293 | |||||||
| Beta | 277 | 281 | |||||||
| Oklahoma | 492 | 488 | |||||||
| East Texas / North Louisiana | 709 | 676 | |||||||
| Eagle Ford (Non-op) | 64 | 104 | |||||||
| Total - MBoe | 1,843 | 1,842 | |||||||
| Total - MBoe/d | 20.3 | 20.2 | |||||||
| % - Liquids | 60 | % | 61 | % | |||||
Total oil, natural gas and NGL revenues for the second quarter of 2024 were approximately
The following table sets forth information regarding average realized sales prices for the periods indicated:
| Crude Oil ($/Bbl) | NGLs ($/Bbl) | Natural Gas ($/Mcf) | |||||||||||||||||||||
| Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2024 | ||||||||||||||||||
| Average sales price exclusive of realized derivatives and certain deductions from revenue | $ | 76.51 | $ | 72.98 | $ | 20.05 | $ | 24.07 | $ | 1.78 | $ | 2.39 | |||||||||||
| Realized derivatives | (3.17 | ) | (1.17 | ) | - | - | 1.36 | 1.21 | |||||||||||||||
| Average sales price with realized derivatives exclusive of certain deductions from revenue | $ | 73.34 | $ | 71.81 | $ | 20.05 | $ | 24.07 | $ | 3.14 | $ | 3.59 | |||||||||||
| Certain deductions from revenue | - | - | (1.06 | ) | (1.46 | ) | 0.02 | 0.01 | |||||||||||||||
| Average sales price inclusive of realized derivatives and certain deductions from revenue | $ | 73.34 | $ | 71.81 | $ | 18.99 | $ | 22.61 | $ | 3.16 | $ | 3.60 | |||||||||||
Costs and Expenses
Lease operating expenses in the second quarter of 2024 were approximately
Severance and Ad Valorem taxes in the second quarter were approximately
Amplify incurred
Second quarter cash G&A expenses were
Depreciation, depletion and amortization expense for the second quarter totaled
Net interest expense was
Amplify recorded current income tax expense of
Capital Investments
Cash capital investment during the second quarter of 2024 was approximately
The following table details Amplify’s capital invested during the second quarter 2024:
| Second Quarter | Year to Date | ||||||
| 2024 Capital | 2024 Capital | ||||||
| ($ MM) | ($ MM) | ||||||
| Bairoil | $ | 0.0 | $ | 1.5 | |||
| Beta | $ | 16.0 | $ | 31.7 | |||
| Oklahoma | $ | 0.8 | $ | 1.6 | |||
| East Texas / North Louisiana | $ | 0.5 | $ | 0.6 | |||
| Eagle Ford (Non-op) | $ | 0.4 | $ | 0.8 | |||
| Magnify Energy Services | $ | 0.3 | $ | 1.0 | |||
| Total Capital Invested | $ | 18.0 | $ | 37.1 | |||
The majority of the Company’s capital investments for the remainder of 2024 will be allocated to Beta to continue the development program and complete the electrification and emissions reduction infrastructure project, which are currently underway. Additionally, the Company has elected to participate in several non-operated drilling opportunities comprised of 14 gross (0.7 net) new development wells and 2 gross (0.4 net) recompletion projects in the Eagle Ford and 4 gross (1.0 net) wells in East Texas. In total, Amplify expects to invest
Beta Development and Facility Upgrade Update
In the second quarter, the Company successfully drilled and completed the A50 well from the Ellen platform in less than 30 days and brought it on-line in early June. The A50 was completed laterally in the prolific D-Sand and achieved a peak IP-30 oil rate of approximately 730 Bopd. Rates from the well after approximately 2 months of production were in excess of 650 Bopd. Total capital costs for the well were approximately
For the third quarter, the Company is moving its drilling operations to the Eureka platform. Amplify will first drill the C59 well (also targeting the D-Sand), which is expected to be online in the third quarter. The Company intends to drill a second well from Eureka platform before returning to platform Ellen late in the fourth quarter. Amplify then anticipates finishing the A45 well, which was deferred earlier in the year.
During the second quarter, the Company continued the third and final phase of the electrification and emissions reduction project at Beta, which involves installing selective catalytic reducers on the platform generators and rig engines. This multi-year facility project is scheduled to be completed in the fourth quarter of 2024, within the compliance deadline as prescribed by district air quality regulations.
Updated Full-Year 2024 Guidance
Based on better than expected results in the first half of the year and our decision to participate in non-operated drilling opportunities in East Texas and the Eagle Ford, the Company is providing updated guidance for 2024. The following guidance is subject to the cautionary statements and limitations described under the "Forward-Looking Statements" caption at the end of this press release. Amplify's updated 2024 guidance is based on its current expectations regarding capital investment and full-year 2024 commodity prices for crude oil of
A summary of the guidance is presented below:
| Previous Guidance | Updated Guidance | ||||||||||
| FY 2024E | FY 2024E | ||||||||||
| Low | High | Low | High | ||||||||
| Net Average Daily Production | |||||||||||
| Oil (MBbls/d) | 8.0 | - | 8.9 | 8.1 | - | 8.9 | |||||
| NGL (MBbls/d) | 3.1 | - | 3.5 | 3.1 | - | 3.5 | |||||
| Natural Gas (MMcf/d) | 44.0 | - | 50.0 | 44.0 | - | 50.0 | |||||
| Total (MBoe/d) | 19.0 | - | 21.0 | 19.0 | - | 21.0 | |||||
| Commodity Price Differential / Realizations (Unhedged) | |||||||||||
| Oil Differential ($ / Bbl) | ( | - | ( | ( | - | ( | |||||
| NGL Realized Price (% of WTI NYMEX) | - | - | |||||||||
| Natural Gas Realized Price (% of Henry Hub) | - | - | |||||||||
| Other Revenue | |||||||||||
| Magnify Energy Services ($ MM) | - | - | |||||||||
| Other ($ MM) | - | - | |||||||||
| Total ($ MM) | $4 | - | $7 | $9 | - | $12 | |||||
| Gathering, Processing and Transportation Costs | |||||||||||
| Oil ($ / Bbl) | - | - | |||||||||
| NGL ($ / Bbl) | - | - | |||||||||
| Natural Gas ($ / Mcf) | - | - | |||||||||
| Total ($ / Boe) | $2.30 | - | $2.90 | $2.25 | - | $2.85 | |||||
| Average Costs | |||||||||||
| Lease Operating ($ / Boe) | - | - | |||||||||
| Taxes (% of Revenue) (1) | - | - | |||||||||
| Cash General and Administrative ($ / Boe) (2)(3) | - | - | |||||||||
| Adjusted EBITDA ($ MM) (2)(3) | $95 | - | $115 | $100 | - | $120 | |||||
| Cash Interest Expense ($ MM) | - | - | |||||||||
| Capital Expenditures ($ MM) | - | - | |||||||||
| Free Cash Flow ($ MM) (2)(3) | $25 | - | $45 | $30 | - | $40 | |||||
(1) Includes production, ad valorem and franchise taxes
(2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between
(3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
Hedging
In the second quarter, Amplify added oil and natural gas hedges. Amplify executed 2026 natural gas swaps at a weighted-average price of
The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed, floor and ceiling prices at which production is hedged for July 2024 through December 2026, as of August 7, 2024:
| 2024 | 2025 | 2026 | ||||||||
| Natural Gas Swaps: | ||||||||||
| Average Monthly Volume (MMBtu) | 775,000 | 675,000 | 500,000 | |||||||
| Weighted Average Fixed Price ($) | $ | 3.73 | $ | 3.74 | $ | 3.79 | ||||
| Natural Gas Collars: | ||||||||||
| Two-way collars | ||||||||||
| Average Monthly Volume (MMBtu) | 500,000 | 500,000 | 500,000 | |||||||
| Weighted Average Ceiling Price ($) | $ | 4.10 | $ | 4.10 | $ | 4.17 | ||||
| Weighted Average Floor Price ($) | $ | 3.50 | $ | 3.50 | $ | 3.55 | ||||
| Oil Swaps: | ||||||||||
| Average Monthly Volume (Bbls) | 83,000 | 78,583 | 30,917 | |||||||
| Weighted Average Fixed Price ($) | $ | 74.34 | $ | 71.79 | $ | 70.68 | ||||
| Oil Collars: | ||||||||||
| Two-way collars | ||||||||||
| Average Monthly Volume (Bbls) | 102,000 | 59,500 | ||||||||
| Weighted Average Ceiling Price ($) | $ | 80.20 | $ | 80.20 | ||||||
| Weighted Average Floor Price ($) | $ | 70.00 | $ | 70.00 | ||||||
Amplify posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.
Quarterly Report on Form 10-Q
Amplify’s financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which Amplify expects to file with the SEC on August 7, 2024.
About Amplify Energy
Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.
Conference Call
Amplify will host an investor teleconference tomorrow at 10:00 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (800) 245-3047 at least 15 minutes before the call begins and providing the Conference ID: AEC2Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Conference ID: 71724901.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the ongoing impact of the oil incident that occurred off the coast of Southern California resulting from the Company’s pipeline operations at the Beta field; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, the Israel-Hamas war and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, free cash flow, net debt, and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.
Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.
Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company's capital structure and financial leverage.
Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.
Contacts
Jim Frew -- Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com
Michael Jordan -- Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com
Selected Operating and Financial Data (Tables)
| Amplify Energy Corp. | |||||||||
| Selected Financial Data - Unaudited | |||||||||
| Statements of Operations Data | |||||||||
| Three Months | Three Months | ||||||||
| Ended | Ended | ||||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | |||||||
| Revenues: | |||||||||
| Oil and natural gas sales | $ | 72,346 | $ | 75,322 | |||||
| Other revenues | 7,157 | 977 | |||||||
| Total revenues | 79,503 | 76,299 | |||||||
| Costs and Expenses: | |||||||||
| Lease operating expense | 36,311 | 38,284 | |||||||
| Pipeline incident loss | 500 | 707 | |||||||
| Gathering, processing and transportation | 4,895 | 4,774 | |||||||
| Exploration | 10 | 41 | |||||||
| Taxes other than income | 4,631 | 4,911 | |||||||
| Depreciation, depletion and amortization | 7,827 | 8,239 | |||||||
| General and administrative expense | 8,358 | 9,800 | |||||||
| Accretion of asset retirement obligations | 2,096 | 2,061 | |||||||
| Realized (gain) loss on commodity derivatives | (3,680 | ) | (4,303 | ) | |||||
| Unrealized (gain) loss on commodity derivatives | 4,905 | 20,867 | |||||||
| Other, net | 98 | - | |||||||
| Total costs and expenses | 65,951 | 85,381 | |||||||
| Operating Income (loss) | 13,552 | (9,082 | ) | ||||||
| Other Income (Expense): | |||||||||
| Interest expense, net | (3,632 | ) | (3,527 | ) | |||||
| Other income (expense) | (109 | ) | (95 | ) | |||||
| Total Other Income (Expense) | (3,741 | ) | (3,622 | ) | |||||
| Income (loss) before reorganization items, net and income taxes | 9,811 | (12,704 | ) | ||||||
| Income tax benefit (expense) - current | (557 | ) | (1,395 | ) | |||||
| Income tax benefit (expense) - deferred | (2,135 | ) | 4,703 | ||||||
| Net income (loss) | $ | 7,119 | $ | (9,396 | ) | ||||
| Earnings per share: | |||||||||
| Basic and diluted earnings (loss) per share | $ | 0.17 | $ | (0.24 | ) | ||||
| Selected Financial Data - Unaudited | |||||||
| Operating Statistics | |||||||
| Three Months | Three Months | ||||||
| Ended | Ended | ||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | |||||
| Oil and natural gas revenue: | |||||||
| Oil Sales | $ | 57,789 | $ | 57,422 | |||
| NGL Sales | 6,565 | 7,525 | |||||
| Natural Gas Sales | 7,992 | 10,375 | |||||
| Total oil and natural gas sales - Unhedged | $ | 72,346 | $ | 75,322 | |||
| Production volumes: | |||||||
| Oil Sales - MBbls | 756 | 786 | |||||
| NGL Sales - MBbls | 345 | 333 | |||||
| Natural Gas Sales - MMcf | 4,453 | 4,335 | |||||
| Total - MBoe | 1,843 | 1,842 | |||||
| Total - MBoe/d | 20.3 | 20.2 | |||||
| Average sales price (excluding commodity derivatives): | |||||||
| Oil - per Bbl | $ | 76.51 | $ | 72.98 | |||
| NGL - per Bbl | $ | 18.99 | $ | 22.61 | |||
| Natural gas - per Mcf | $ | 1.79 | $ | 2.39 | |||
| Total - per Boe | $ | 39.25 | $ | 40.89 | |||
| Average unit costs per Boe: | |||||||
| Lease operating expense | $ | 19.70 | $ | 20.78 | |||
| Gathering, processing and transportation | $ | 2.66 | $ | 2.59 | |||
| Taxes other than income | $ | 2.51 | $ | 2.67 | |||
| General and administrative expense | $ | 4.53 | $ | 5.32 | |||
| Depletion, depreciation, and amortization | $ | 4.25 | $ | 4.47 | |||
| Selected Financial Data - Unaudited | |||||||||
| Asset Operating Statistics | |||||||||
| Three Months | Three Months | ||||||||
| Ended | Ended | ||||||||
| June 30, 2024 | March 31, 2024 | ||||||||
| Production volumes - MBOE: | |||||||||
| Bairoil | 301 | 293 | |||||||
| Beta | 277 | 281 | |||||||
| Oklahoma | 492 | 488 | |||||||
| East Texas / North Louisiana | 709 | 676 | |||||||
| Eagle Ford (Non-op) | 64 | 104 | |||||||
| Total - MBoe | 1,843 | 1,842 | |||||||
| Total - MBoe/d | 20.3 | 20.2 | |||||||
| % - Liquids | 60 | % | 61 | % | |||||
| Lease operating expense - $M: | |||||||||
| Bairoil | $ | 13,423 | $ | 14,451 | |||||
| Beta | 11,889 | 12,011 | |||||||
| Oklahoma | 3,896 | 4,463 | |||||||
| East Texas / North Louisiana | 5,386 | 5,744 | |||||||
| Eagle Ford (Non-op) | 1,717 | 1,615 | |||||||
| Total Lease operating expense: | $ | 36,311 | $ | 38,284 | |||||
| Capital expenditures - $M: | |||||||||
| Bairoil | $ | 3 | $ | 1,461 | |||||
| Beta | 15,991 | 15,681 | |||||||
| Oklahoma | 788 | 768 | |||||||
| East Texas / North Louisiana | 472 | 93 | |||||||
| Eagle Ford (Non-op) | 436 | 410 | |||||||
| Magnify Energy Services | 314 | 679 | |||||||
| Total Capital expenditures: | $ | 18,004 | $ | 19,092 | |||||
| Selected Financial Data - Unaudited | ||||||
| Balance Sheet Data | ||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | ||||
| Assets | ||||||
| Cash and Cash Equivalents | ||||||
| Accounts Receivable | 36,306 | 36,540 | ||||
| Other Current Assets | 25,210 | 22,795 | ||||
| Total Current Assets | ||||||
| Net Oil and Gas Properties | ||||||
| Other Long-Term Assets | 289,555 | 291,629 | ||||
| Total Assets | ||||||
| Liabilities | ||||||
| Accounts Payable | ||||||
| Accrued Liabilities | 35,831 | 36,776 | ||||
| Other Current Liabilities | 12,629 | 20,809 | ||||
| Total Current Liabilities | ||||||
| Long-Term Debt | ||||||
| Asset Retirement Obligation | 125,739 | 124,062 | ||||
| Other Long-Term Liabilities | 12,831 | 12,819 | ||||
| Total Liabilities | ||||||
| Shareholders' Equity | ||||||
| Common Stock & APIC | ||||||
| Accumulated Earnings (Deficit) | (46,691) | (53,848) | ||||
| Total Shareholders' Equity | ||||||
| Selected Financial Data - Unaudited | ||||||||
| Statements of Cash Flows Data | ||||||||
| Three Months | Three Months | |||||||
| Ended | Ended | |||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | ||||||
| Net cash provided by (used in) operating activities | $ | 15,389 | $ | 7,712 | ||||
| Net cash provided by (used in) investing activities | (20,853 | ) | (23,724 | ) | ||||
| Net cash provided by (used in) financing activities | 2,977 | (1,745 | ) | |||||
| Selected Operating and Financial Data (Tables) | |||||||||
| Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures | |||||||||
| Adjusted EBITDA1 and Free Cash Flow | |||||||||
| Three Months | Three Months | ||||||||
| Ended | Ended | ||||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | |||||||
| Reconciliation of Adjusted EBITDA1 to Net Cash Provided from Operating Activities: | |||||||||
| Net cash provided by operating activities | $ | 15,389 | $ | 7,712 | |||||
| Changes in working capital | 10,348 | 11,217 | |||||||
| Interest expense, net | 3,632 | 3,527 | |||||||
| Amortization and write-off of deferred financing fees | (304 | ) | (304 | ) | |||||
| Exploration costs | 10 | 41 | |||||||
| Acquisition and divestiture related costs | 9 | 14 | |||||||
| Plugging and abandonment cost | 514 | - | |||||||
| Current income tax expense (benefit) | 557 | 1,395 | |||||||
| Pipeline incident loss | 500 | 707 | |||||||
| Other | 94 | 592 | |||||||
| Adjusted EBITDA1: | $ | 30,749 | $ | 24,901 | |||||
| Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities: | |||||||||
| Adjusted EBITDA1: | $ | 30,749 | $ | 24,901 | |||||
| Less: Cash interest expense | 3,594 | 3,526 | |||||||
| Less: Capital expenditures | 18,004 | 19,092 | |||||||
| Free Cash Flow: | $ | 9,151 | $ | 2,283 | |||||
(1) Adjusted EBITDA includes a non-cash revenue suspense release of
| Selected Operating and Financial Data (Tables) | ||||||||||
| Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures | ||||||||||
| Adjusted EBITDA1 and Free Cash Flow | ||||||||||
| Three Months | Three Months | |||||||||
| Ended | Ended | |||||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | ||||||||
| Reconciliation of Adjusted EBITDA1 to Net Income (Loss): | ||||||||||
| Net income (loss) | $ | 7,119 | $ | (9,396 | ) | |||||
| Interest expense, net | 3,632 | 3,527 | ||||||||
| Income tax expense (benefit) - current | 557 | 1,395 | ||||||||
| Income tax expense (benefit) - deferred | 2,135 | (4,703 | ) | |||||||
| Depreciation, depletion and amortization | 7,827 | 8,239 | ||||||||
| Accretion of asset retirement obligations | 2,096 | 2,061 | ||||||||
| (Gains) losses on commodity derivatives | 1,225 | 16,564 | ||||||||
| Cash settlements received (paid) on expired commodity derivative instruments | 3,680 | 4,303 | ||||||||
| Acquisition and divestiture related costs | 9 | 14 | ||||||||
| Share-based compensation expense | 1,767 | 1,531 | ||||||||
| Exploration costs | 10 | 41 | ||||||||
| Loss on settlement of AROs | 98 | - | ||||||||
| Bad debt expense | - | 26 | ||||||||
| Pipeline incident loss | 500 | 707 | ||||||||
| Other | 94 | 592 | ||||||||
| Adjusted EBITDA1: | $ | 30,749 | $ | 24,901 | ||||||
| Reconciliation of Free Cash Flow to Net Income (Loss): | ||||||||||
| Adjusted EBITDA1: | $ | 30,749 | $ | 24,901 | ||||||
| Less: Cash interest expense | 3,594 | 3,526 | ||||||||
| Less: Capital expenditures | 18,004 | 19,092 | ||||||||
| Free Cash Flow: | $ | 9,151 | $ | 2,283 | ||||||
(1) Adjusted EBITDA includes a non-cash revenue suspense release of
| Selected Operating and Financial Data (Tables) | |||||||
| Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures | |||||||
| Cash General and Administrative Expenses | |||||||
| Three Months | Three Months | ||||||
| Ended | Ended | ||||||
| (Amounts in | June 30, 2024 | March 31, 2024 | |||||
| General and administrative expense | $ | 8,358 | $ | 9,800 | |||
| Less: Share-based compensation expense | 1,767 | 1,531 | |||||
| Less: Acquisition and divestiture costs | 9 | 14 | |||||
| Less: Bad debt expense | — | 26 | |||||
| Less: Severance payments | — | 344 | |||||
| Total Cash General and Administrative Expense | $ | 6,582 | $ | 7,885 | |||
| Selected Operating and Financial Data (Tables) | ||||||||||
| Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures | ||||||||||
| Revenue Payables in Suspense | ||||||||||
| Three Months | Six Months | |||||||||
| Ended | Ended | |||||||||
| (Amounts in | June 30, 2024 | June 30, 2024 | ||||||||
| Oil and natural gas sales | $ | 2,579 | $ | 4,023 | ||||||
| Other revenues | 4,829 | 4,829 | ||||||||
| Severance tax and other deducts | (361 | ) | (433 | ) | ||||||
| Total net revenue | $ | 7,047 | $ | 8,419 | ||||||
| Production volumes: | ||||||||||
| Oil (MBbls) | 10 | 33 | ||||||||
| NGLs (MBbls) | 27 | 31 | ||||||||
| Natural gas (MMcf) | 421 | 441 | ||||||||
| Total (Mboe) | 107 | 138 | ||||||||
| Total (Mboe/d) | 1.18 | 0.76 | ||||||||
FAQ
What were Amplify Energy's Q2 2024 net income results?
How did Amplify Energy's Adjusted EBITDA perform in Q2 2024?
What was Amplify Energy's average production in Q2 2024?
What is the expected payback period for the A50 well at Beta?
What is Amplify Energy's updated 2024 guidance based on?
