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Amplify Energy (AMPY) 7 Nov 24 2024 Q3 Earnings call transcript

AInvestThursday, Nov 7, 2024 10:58 pm ET
1min read

Amplify Energy Corp., a leading player in the energy sector, recently held its Q3 2024 earnings call to discuss operational and financial performance. The call, led by Senior Vice President and CFO, Jim Frew, and CEO, Martyn Willsher, offered valuable insights into Amplify's strategic initiatives, operational performance, and financial health.

Strong Operational Performance and Strategic Initiatives

Amplify Energy reported a solid operational performance in Q3 2024, with adjusted EBITDA of $25.5 million and free cash flow of $3.6 million. The company has been exploring potential opportunities to monetize its Wyoming assets, but has decided to retain ownership due to market volatility. However, they remain open to a transaction if it benefits shareholders. At Beta, Amplify has made significant strides with successful drilling and bringing online the C-59 well, which has exceeded initial projections. The company also announced progress in its 2024 development program, with the C-59 and C-48 wells showing promising results.

Financial Health and Liquidity

Financially, Amplify Energy reported a net income of approximately $22.7 million for Q3 2024, demonstrating a strong financial position. The company's leverage ratio improved from 1.2x to 1.1x, showcasing improved financial health. Amplify also took advantage of market volatility to add to its hedge position, further protecting future cash flows. The company's forecasted PDP crude oil production for 2024 and 2025 is approximately 75% to 80% hedged, providing stability and predictability.

Sustainability and Stakeholder Engagement

Amplify Energy also released its second annual sustainability report, highlighting its commitment to disclosures and stakeholder engagement. The report showcases significant strides made in reducing Scope 1 emissions and methane intensity, safety procedures, environmental performance, and dedication to sound corporate governance.

Looking Ahead

With a strong operational performance, solid financial health, and strategic initiatives in place, Amplify Energy is well-positioned for the future. The company's focus on reducing operating costs and optimizing its diverse portfolio of assets is expected to deliver substantial benefits and long-term value to shareholders. The upcoming 2025 development program, coupled with non-operated investment opportunities in East Texas and the Eagle Ford, holds significant potential for growth and value creation.

In conclusion, Amplify Energy's Q3 2024 earnings call painted a picture of a company on a positive trajectory, with solid operational performance, a strong financial position, and strategic initiatives in place to drive growth and value for its stakeholders. The company's commitment to sustainability and stakeholder engagement is a testament to its long-term vision and dedication to responsible business practices. As Amplify Energy moves forward, it is poised to capitalize on the opportunities ahead and continue to deliver strong returns for its investors.

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