Amplify Energy (AMPY) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $22.7 million, up from $7.1 million in the prior quarter, primarily due to a non-cash unrealized gain on commodity derivatives.

• Adjusted EBITDA for Q3 2024 was $25.5 million, with free cash flow of $3.6 million, both in line with expectations and positive for 17 of the last 18 quarters.

• Beta field performance was strong, with successful drilling and completion of the C-59 well (IP30: 590 Bopd) and ongoing completion of the C-48 well.

• Issued second annual sustainability report, highlighting significant reductions in Scope 1 emissions and methane intensity.

• Net production averaged 19.0 MBoepd in Q3 2024, with 43% oil, 17% NGLs, and 40% natural gas.

Financial highlights

• Lease operating expenses were $33.3 million ($18.98/Boe) in Q3 2024, down from Q2 and prior year, aided by optimization and reclassification.

• Cash G&A was $6.2 million, down $0.4 million from Q2, mainly due to lower legal fees.

• Interest expense was $3.8 million, up slightly from Q2.

• Capital investment in Q3 was $18.2 million, with 66% allocated to Beta projects.

• Market capitalization as of 10/25/24 was $268 million; enterprise value $388 million.

Outlook and guidance

• Full-year 2024 capital expenditures expected at or slightly above the high end of $60–$65 million guidance due to accelerated non-operated development.

• Net average daily production guidance for FY24 is 19.0–21.0 MBoepd.

• Fourth-quarter LOE expected to be lower than Q3 and in line with guidance.

• Monetization opportunities in East Texas Haynesville expected between now and mid-Q1 2025, with potential proceeds of several million dollars.

• Return of capital possible in 2025, contingent on debt reduction and development activity pace.