Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Amplify Energy Announces Fourth Quarter and Full-Year 2023 Results, Year-End 2023 Proved Reserves and Full-Year 2024 Guidance

HOUSTON, March 06, 2024 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2023, year-end 2023 proved reserves and guidance for full-year 2024.

Key Highlights

  • 2024 strategic updates include:
    • Commenced the Beta development program, with the first well spud in March 2024
    • Initiated the previously announced Bairoil marketing process
  • During the fourth quarter of 2023, the Company:
    • Achieved average total production of 20.8 MBoepd
    • Generated net cash provided by operating activities of $28.4 million and net income of $43.6 million
    • Delivered Adjusted EBITDA of $25.2 million
    • Generated $14.4 million of free cash flow
  • For full-year 2023, the Company:
    • Achieved average total production of 20.5 MBoepd
    • Generated net cash provided by operating activities of $141.6 million and net income of $392.8 million
    • Delivered Adjusted EBITDA of $88.0 million
    • Generated $38.0 million of free cash flow
    • Reduced net-debt by approximately $95 million
  • Amplify’s year-end 2023 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $78.22/Bbl for oil and NGLs and $2.64/MMBtu for natural gas, totaled 98 million barrels of oil equivalent (MMBoe) and had a PV-10 value of approximately $757 million
    • At February 22, 2024 strip pricing, the Company’s year-end 2023 proved reserves had a PV-10 value of approximately $574 million
  • As of December 31, 2023, net debt was $94 million, consisting of $115 million outstanding under the revolving credit facility and $21 million of cash and cash equivalents
    • Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.1x1

(1)   Net debt as of December 31, 2023, and LTM Adjusted EBITDA as of the fourth quarter of 2023

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “I am proud of all we accomplished at Amplify in 2023, with the Company performing well both operationally and financially during the year. We returned Beta to production safely and effectively and have seen strong results with current average daily production exceeding pre-shutdown levels. We also formed a wholly owned subsidiary, Magnify Energy Services, to provide a variety of oilfield services to Amplify-operated wells, which allows us to better manage operating costs and operational risk. In late 2023, we began to see Magnify’s positive impact on our results, which we expect to increase in 2024. Further, we improved our balance sheet by reducing debt outstanding by approximately $95 million and established a new credit facility with a supportive bank group.”

Mr. Willsher added, “We believe 2024 has the potential to be a transformative year for the Company as we execute our strategic initiatives to develop the prolific Beta asset, further reduce leverage, and continue our focus on reducing operating costs. This year we are primarily allocating capital to high-return development opportunities at Beta, which are expected to enhance future cash flows, and toward completing the emission reduction projects at Beta, which will drive further cost efficiencies. Additionally, we recently initiated the marketing process of our assets in Bairoil, the potential sale of which will allow us to further reduce debt outstanding and provide us with the flexibility to accelerate our evaluation of return of capital alternatives. With both the Beta development program and the Bairoil marketing process underway, we are eager to capitalize on these opportunities, which we expect will deliver substantial value to our shareholders.”

2023 Year-End Proved Reserve Update

The Company’s estimated proved reserves at SEC pricing for year-end 2023 totaled 98 MMBoe, which consisted of 96 MMBoe of proved developed reserves and 2 MMBoe of proved undeveloped reserves. Total proved reserves were comprised of 42% oil, 20% NGLs, and 38% natural gas. Of the total proved reserves volumes, 30% are located in Oklahoma, 30% are in East Texas and Northern Louisiana, 24% are in Bairoil, 13% are at Beta, and 3% are in the Eagle Ford (Non-op).

At year-end 2023, Amplify’s proved reserves and proved developed reserves had PV-10 values of approximately $757 million and $716 million, respectively, using SEC pricing. Utilizing strip pricing as of February 22, 2024, the Company’s proved reserves and proved developed reserves had PV-10 values of approximately $574 million and $545 million, respectively.

 Estimated Net Proved Reserves 
   % Oil and% ProvedTotal Proved 
RegionMMBoe NGLDevelopedPV-10 
     (in millions) 
       
Bairoil23.5 100% 100% $223 
Beta12.7 100% 91%  206 
Oklahoma29.5 48% 100%  172 
East Texas/ North Louisiana29.9 26% 100%  108 
Eagle Ford (Non-op)2.5 90% 68%  48 
Total98.1 61% 98% $ 757 
       

Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

Key Financial Results

During the fourth quarter of 2023, the Company reported net income of approximately $43.6 million compared to a net loss of $13.4 million in the prior quarter. The increase was primarily attributable to non-cash unrealized gains on commodity derivatives during the period.

Amplify generated $25.2 million of Adjusted EBITDA for the fourth quarter, an increase of approximately $5.7 million from $19.5 million in the prior quarter, principally due to lower lease operating expenses and slightly higher oil production.

Free cash flow was $14.4 million for the fourth quarter of 2023, an increase of 136% versus the prior quarter.

    
    
    
  Fourth QuarterThird Quarter
$ in millions  2023 2023 
Net income (loss) $43.6($13.4)
Net cash provided by operating activities $28.4$18.0 
Average daily production (MBoe/d)  20.8 20.6 
Total revenues excluding hedges $79.0$76.8 
Adjusted EBITDA (a non-GAAP financial measure)$25.2$19.5 
Total capital $7.1$9.7 
Free Cash Flow (a non-GAAP financial measure)$14.4$6.1 
    

Revolving Credit Facility

As of December 31, 2023, Amplify had net debt of $94 million, consisting of $115 million outstanding under its revolving credit facility and $21 million of cash and cash equivalents. Net Debt to LTM Adjusted EBITDA was 1.1x (net debt as of December 31, 2023 and 4Q23 LTM Adjusted EBITDA). The next regularly scheduled borrowing base redetermination is expected to occur in the second quarter of 2024.

Corporate Production and Pricing Update

During the fourth quarter of 2023, average daily production was approximately 20.8 MBoepd, an increase of 1% from 20.6 MBoepd in the prior quarter. Beta production was 12% higher than the prior quarter, partially offsetting natural declines in other parts of our portfolio. The Company’s product mix for the quarter was 41% crude oil, 18% NGLs, and 41% natural gas. For the full-year 2023, the Company produced 20.5 MBoepd which was within our full-year guidance range.

         
     Three Months Three Months 
     Ended Ended 
     December 31, 2023 September 30, 2023 
         
 Production volumes - MBOE:     
  Bairoil 314  263  
  Beta 275  246  
  Oklahoma 506  536  
  East Texas / North Louisiana 731  754  
  Eagle Ford (Non-op) 84  98  
  Total - MBoe 1,910  1,897  
  Total - MBoe/d 20.8  20.6  
  % - Liquids 59% 56% 
         

Total oil, natural gas and NGL revenues for the fourth quarter of 2023 were approximately $78.2 million, before the impact of derivatives, compared to $76.4 million in the prior quarter. The Company realized a loss on commodity derivatives of $3.2 million during the quarter. Oil and gas revenues, net of realized hedges, increased $1.8 million for the fourth quarter compared to the prior quarter, despite slightly lower oil and NGL prices net of hedges.

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 December 31, 2023 Three Months Ended September 30, 2023 Three Months Ended December 31, 2023 Three Months Ended September 30, 2023 Three Months Ended December 31, 2023 Three Months Ended September 30, 2023 
              
Average sales price exclusive of realized derivatives and certain deductions from revenue $75.31  $78.45  $23.36  $24.89  $2.49 $2.27 
Realized derivatives  (6.84)  (9.89)  -   -   0.46  0.66 
              
Average sales price with realized derivatives exclusive of certain deductions from revenue $68.47  $68.56  $23.36  $24.89  $2.95 $2.93 
Certain deductions from revenue  -   -   (1.47)  (1.55)  0.01  0.01 
              
Average sales price inclusive of realized derivatives and certain deductions from revenue $68.47  $68.56  $21.89  $23.33  $2.96 $2.94 
              

Costs and Expenses

Lease operating expenses in the fourth quarter of 2023 were approximately $34.6 million, or $18.14 per Boe, a $2.4 million decrease compared to third-quarter operating expenses. The Company also benefited from a $1.5 million accounting adjustment at Beta. For the full-year 2023, lease operating expenses were approximately $139.6 million, or $18.66 per Boe. Cost reduction efforts during the year allowed the Company to perform better than the mid-point of the guidance range. These efforts are expected to continue through 2024 and beyond.

Severance and Ad Valorem taxes in the fourth quarter were approximately $5.9 million, an increase of $1.0 million compared to $4.9 million in the prior quarter. Severance and Ad Valorem taxes as a percentage of revenue were approximately 7.6% this quarter compared to 6.5% in the previous quarter. For the full-year 2023, Severance and Ad Valorem taxes were approximately $21.3 million, or 7.4% as a percentage of revenue, which was lower than the mid-point of our guidance range.

Amplify incurred $5.1 million, or $2.66 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $5.0 million, or $2.63 per Boe, in the previous quarter. For the full-year 2023, gathering, processing and transportation expenses were approximately $20.8 million, or $2.78 per Boe, and were lower than the mid-point of our guidance range.

Fourth quarter Cash G&A expenses were $6.2 million, a decrease of $0.3 million from $6.5 million in the prior quarter. For the full-year 2023, Cash G&A expenses were $26.4 million, or $3.53 per Boe, and were within our guidance range.

Depreciation, depletion and amortization expense for the fourth quarter totaled $7.6 million, or $4.00 per Boe, compared to $7.5 million, or $3.95 per Boe, in the prior quarter.

Net interest expense was $3.8 million this quarter, a decrease of $0.7 million from $4.5 million in the prior quarter.

Amplify recorded current income tax benefit of $2.3 million for the fourth quarter. In 2023, Amplify incurred approximately $4.8 million in cash income taxes. Going forward we expect to continue maintaining a cash income tax paying position.

Capital Investment Update

Cash capital investment during the fourth quarter of 2023 was approximately $7.1 million, a $2.6 million decrease from $9.7 million in the prior quarter. The majority of capital investment in the fourth quarter related to workover and facility projects at Beta. Also in the fourth quarter, the Company farmed out deep rights in certain acreage in East Texas for receipts of $1.2 million, which is reflected as a reduction to capital investments. For the full-year 2023, Amplify’s capital investments totaled $33.7 million, which was lower than the midpoint of our guidance. Capital was primarily directed to well workover projects, along with emissions and cost reducing facility projects at Beta.

The following table details Amplify’s capital incurred during the fourth quarter and full-year 2023:

  Fourth Quarter Full-Year
  2023 Capital 2023 Capital
  ($ MM) ($ MM)
Bairoil $(0.1) $3.5 
Beta $7.7  $19.0 
Oklahoma $0.5  $4.7 
East Texas / North Louisiana $(1.2) $(0.6)
Eagle Ford (Non-op) $0.2  $7.1 
Total Capital Invested $7.1  $33.7 
     

2024 Operations & Development Plan

The following table details Amplify’s 2024 projected capital investments of $50 – $60 million:

Capital Investment by Type (% of Total):   
Beta Development 40% 
Beta Facility 26% 
Workovers & Other Facilities 29% 
Non-op Development 5% 
Total Capital Investments: 100% 
      

Amplify’s 2024 operations and development plan is designed to further unlock the underlying value of the Company’s assets. We intend to do this by executing a limited development program and completing the large facility projects at Beta, executing on low-cost, high-return workover projects, and continuing to reduce operating costs through cost saving initiatives utilizing Magnify Energy Services.

In the first quarter of 2024, Amplify initiated the previously announced four-well development program at Beta. If successful, the program is expected to yield substantial upside for the Company and bolster long-term profitability and operating margins. Initial production results for the first two wells are expected in the second quarter of 2024, with the final two wells coming online in the fourth quarter. At current oil prices, these wells project IRRs in excess of 100% and expected paybacks of less than one year. Additionally, the Company is deploying capital to facility projects at Beta which will improve operational efficiencies, reduce power expenses and significantly reduce emissions. By the end of 2024, the Company expects to see an increase in oil production and a lower cost structure at Beta which will materially increase the long-term value of the asset.

At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Furthermore, prior facility investments and enhanced operational efficiencies have enabled the Company to reduce the frequency of planned maintenance turnarounds, which will substantially reduce capital costs and production downtime.

Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

In East Texas, we continue to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs. Should natural gas prices improve throughout the year, the Company has the ability to opportunistically exploit additional workover opportunities and participate in non-operated development prospects in the basin.

In August 2023, we formed Magnify Energy Services to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. For 2023, Magnify added $0.5 million to Adjusted EBITDA. In 2024, we expect to invest $1.0 million of capital in Magnify, which is projected to generate approximately $2 – $3 million of Adjusted EBITDA and to partially offset operating expenses.

In the Eagle Ford, Amplify expects to participate in approximately 0.5 – 1.0 net non-operated wells with highly accretive returns, which are currently scheduled to be drilled in late 2024 and completed in the first half of 2025.

Full-Year 2024 Guidance

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 2024 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $75/Bbl (WTI) and natural gas of $2.50/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest 85% to 95% of its capital in the first three quarters of the year primarily in connection with the Beta development program.

A summary of the guidance is presented below:

        
    FY 2024E 
        
        
    Low High 
        
 Net Average Daily Production    
 Oil (MBbls/d)   8.0 - 8.9  
 NGL (MBbls/d)   3.0 - 3.3  
 Natural Gas (MMcf/d)  47.0 - 52.5  
 Total (MBoe/d)   19.0 - 21.0  
        
 Commodity Price Differential / Realizations (Unhedged)    
 Oil Differential ($ / Bbl) ($2.75) - ($3.50)  
 NGL Realized Price (% of WTI NYMEX) 27% - 30%  
 Natural Gas Realized Price (% of Henry Hub) 85% - 92%  
        
 Other Revenue      
 Magnify Energy Services ($ MM)$2 - $4  
        
 Gathering, Processing and Transportation Costs    
 Oil ($ / Bbl)  $0.70 - $0.90  
 NGL ($ / Bbl)  $2.75 - $3.75  
 Natural Gas ($ / Mcf) $0.55 - $0.75  
 Total ($ / Boe)  $2.30 - $2.90  
        
 Average Costs      
 Lease Operating ($ / Boe)$18.50 - $20.50  
 Taxes (% of Revenue)(1) 6.5% - 7.5%  
 Cash General and Administrative ($ / Boe)(2)(3)$3.30 - $3.80  
        
 Adjusted EBITDA ($ MM)(2)(3)$90 - $110  
 Cash Interest Expense ($ MM)$10 - $15  
 Capital Expenditures ($ MM)$50 - $60  
 Free Cash Flow ($ MM)(2)(3)$20 - $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 $4 - $8 million for the year)
(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 Update

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 January 2024 through December 2026, as of March 6, 2024:

   2024  2025  2026
       
 Natural Gas Swaps:     
 Average Monthly Volume (MMBtu) 662,500  675,000  291,667
 Weighted Average Fixed Price ($)$3.72 $3.74 $3.72
       
 Natural Gas Collars:     
 Two-way collars     
 Average Monthly Volume (MMBtu) 627,083  500,000  291,667
 Weighted Average Ceiling Price ($)$4.32 $4.10 $4.10
 Weighted Average Floor Price ($)$3.43 $3.50 $3.50
       
 Oil Swaps:     
 Average Monthly Volume (Bbls) 73,333  53,000  30,917
 Weighted Average Fixed Price ($)$73.39 $70.68 $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.

Annual Report on Form 10-K

Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2023, which Amplify expects to file with the SEC on March 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) 343-5172 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q23. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Conference ID: 28240256.

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 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 and effects of inflation; and the impact of legislation and 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, PV-10 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 or loss, plus interest expense; income tax expenses; depreciation, depletion and amortization; accretion of asset retirement obligations; gains or losses on commodity derivatives; cash settlements received on or paid expired commodity derivatives; amortization of gains associated with terminated commodity derivatives; acquisition and divestiture related costs; share-based compensation expenses; exploration costs; loss on settlement of AROs; bad debt expense; pipeline incident loss; pipeline incident settlement; LOPI-timing differences; litigation settlement; and net operating cash flows, effective date to closing for acquisitions. 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.
PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

The Company also presents PV-10 at strip pricing, which is PV-10 adjusted for price sensitivities. As GAAP does not prescribe a comparable GAAP measure for PV-10 of reserves adjusted for pricing sensitivities, it is not practicable for us to reconcile PV-10 at strip pricing to a standardized measure or any other GAAP measure.

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 $000s, except per share data) December 31, 2023 September 30, 2023
        
 Revenues:    
  Oil and natural gas sales $78,191  $76,403 
  Other revenues  794   367 
  Total revenues  78,985   76,770 
        
 Costs and Expenses:    
  Lease operating expense  34,641   37,083 
  Pipeline incident loss  4,299   559 
  Gathering, processing and transportation  5,073   4,984 
  Exploration  17   - 
  Taxes other than income  5,908   4,942 
  Depreciation, depletion and amortization  7,635   7,489 
  General and administrative expense  8,437   8,255 
  Accretion of asset retirement obligations  2,029   2,005 
  Realized (gain) loss on commodity derivatives 3,191   3,232 
  Unrealized (gain) loss on commodity derivatives (47,905)  20,096 
  Other, net  315   449 
  Total costs and expenses  23,640   89,094 
        
 Operating Income (loss)  55,345   (12,324)
        
 Other Income (Expense):    
  Interest expense, net  (3,811)  (4,470)
  Other income (expense)  80   124 
  Total Other Income (Expense)  (3,731)  (4,346)
        
  Income (loss) before reorganization items, net and income taxes 51,614   (16,670)
        
 Income tax benefit (expense) - current  2,298   (1,441)
 Income tax benefit (expense) - deferred  (10,334)  4,708 
        
  Net income (loss) $43,578  $(13,403)
        
 Earnings per share:    
  Basic and diluted earnings (loss) per share $1.07  $(0.34)
        


 Selected Financial Data - Unaudited    
 Operating Statistics    
        
        
     Three Months Three Months
     Ended Ended
 (Amounts in $000s, except per unit data) December 31, 2023 September 30, 2023
        
 Oil and natural gas revenue:    
  Oil Sales $58,883 $57,214
  NGL Sales  7,460  7,777
  Natural Gas Sales  11,848  11,412
  Total oil and natural gas sales - Unhedged$78,191 $76,403
        
 Production volumes:    
  Oil Sales - MBbls  782  729
  NGL Sales - MBbls  341  334
  Natural Gas Sales - MMcf  4,726  5,006
  Total - MBoe  1,910  1,897
  Total - MBoe/d  20.8  20.6
        
 Average sales price (excluding commodity derivatives):   
  Oil - per Bbl $75.31 $78.45
  NGL - per Bbl $21.89 $23.33
  Natural gas - per Mcf $2.51 $2.28
  Total - per Boe $40.93 $40.28
        
 Average unit costs per Boe:    
  Lease operating expense $18.14 $19.54
  Gathering, processing and transportation $2.66 $2.63
  Taxes other than income $3.09 $2.60
  General and administrative expense $4.42 $4.35
  Depletion, depreciation, and amortization $4.00 $3.95
        


 Selected Financial Data - Unaudited    
 Asset Operating Statistics    
        
        
     Three Months Three Months
     Ended Ended
     December 31, 2023 September 30, 2023
        
 Production volumes - MBOE:    
  Bairoil  314   263 
  Beta  275   246 
  Oklahoma  506   536 
  East Texas / North Louisiana  731   754 
  Eagle Ford (Non-op)  84   98 
  Total - MBoe  1,910   1,897 
  Total - MBoe/d  20.8   20.6 
  % - Liquids  59%  56%
        
 Lease operating expense - $M:    
  Bairoil $12,805  $12,107 
  Beta  9,444   11,902 
  Oklahoma  4,592   5,022 
  East Texas / North Louisiana  6,024   6,397 
  Eagle Ford (Non-op)  1,776   1,655 
  Total Lease operating expense: $34,641  $37,083 
        
 Capital expenditures - $M:    
  Bairoil $(79) $3,340 
  Beta  7,676   4,742 
  Oklahoma  524   955 
  East Texas / North Louisiana  (1,191)  293 
  Eagle Ford (Non-op)  172   368 
  Total Capital expenditures: $7,102  $9,698 
        


 Selected Financial Data - Unaudited    
 Balance Sheet Data    
        
        
 (Amounts in $000s) December 31, 2023 September 30, 2023
        
 Assets    
  Cash and Cash Equivalents $20,746 $6,387
  Accounts Receivable 39,096 47,864
  Other Current Assets 38,341 24,003
   Total Current Assets $98,183 $78,254
        
  Net Oil and Gas Properties $346,741 $346,896
  Other Long-Term Assets 292,750 291,955
   Total Assets $737,674 $717,105
        
 Liabilities    
  Accounts Payable $23,616 $18,708
  Accrued Liabilities 50,871 55,354
  Other Current Liabilities 21,944 34,195
   Total Current Liabilities $96,431 $108,257
        
  Long-Term Debt $115,000 $120,000
  Asset Retirement Obligation 122,001 119,856
  Other Long-Term Liabilities 13,206 22,955
   Total Liabilities $346,638 $371,068
        
 Shareholders' Equity    
  Common Stock & APIC $435,488 $434,067
  Accumulated Earnings (Deficit) (44,452) (88,030)
   Total Shareholders' Equity $391,036 $346,037
        


 Selected Financial Data - Unaudited    
 Statements of Cash Flows Data    
        
        
     Three Months Three Months
     Ended Ended
 (Amounts in $000s) December 31, 2023 September 30, 2023
        
        
 Net cash provided by (used in) operating activities$28,362  $18,007 
 Net cash provided by (used in) investing activities (8,637)  (8,816)
 Net cash provided by (used in) financing activities (5,366)  (4,669)
        


 Selected Operating and Financial Data (Tables)    
 Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures  
 Adjusted EBITDA and Free Cash Flow    
        
        
     Three Months Three Months
     Ended Ended
 (Amounts in $000s, except per share data) December 31, 2023 September 30, 2023
        
 Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:  
  Net cash provided by operating activities $28,362  $18,007 
  Changes in working capital  (10,961)  (4,985)
  Interest expense, net  3,811   4,470 
  Cash settlements received on terminated commodity derivatives -   (658)
  Amortization of gain associated with terminated commodity derivatives 658   - 
  Amortization and write-off of deferred financing fees (301)  (908)
  Exploration costs  17   - 
  Acquisition and divestiture related costs  3   216 
  Plugging and abandonment cost  558   1,153 
  Current income tax expense (benefit)  (2,298)  1,441 
  Pipeline incident loss  4,299   559 
  Other  1,042   188 
 Adjusted EBITDA: $25,190  $19,483 
        
 Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:  
 Adjusted EBITDA: $25,190  $19,483 
  Less: Cash interest expense  3,660   3,642 
  Less: Capital expenditures  7,102   9,698 
 Free Cash Flow: $14,428  $6,143 
        


 Selected Operating and Financial Data (Tables)    
 Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures  
 Adjusted EBITDA and Free Cash Flow    
        
        
     Twelve Months Twelve Months
     Ended Ended
 (Amounts in $000s, except per share data) December 31, 2023 December 31, 2022
        
 Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:  
  Net cash provided by operating activities $141,590  $64,485 
  Changes in working capital  (8,517)  (14,812)
  Interest expense, net  17,719   14,101 
  Gain (loss) on interest rate swaps  -   935 
  Cash settlements paid (received) on interest rate swaps -   (311)
  Cash settlements received on terminated commodity derivatives (658)  - 
  Amortization of gain associated with terminated commodity derivatives 658   - 
  Amortization and write-off of deferred financing fees (1,980)  (649)
  Exploration costs  57   57 
  Acquisition and divestiture related costs  219   41 
  Plugging and abandonment cost  2,239   1,829 
  Current income tax expense (benefit)  4,817   111 
  Pipeline incident loss  19,981   11,277 
  Pipeline incident settlement  -   12,000 
  LOPI - timing differences  (4,636)  4,636 
  Litigation settlement  (84,875)  - 
  Other  1,418   122 
 Adjusted EBITDA: $88,032  $93,822 
        
 Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:  
 Adjusted EBITDA: $88,032  $93,822 
  Less: Cash interest expense  16,263   14,402 
  Less: Capital expenditures  33,744   35,797 
 Free Cash Flow: $38,025  $43,623 
        


 Selected Operating and Financial Data (Tables)    
 Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures  
 Adjusted EBITDA and Free Cash Flow    
        
        
     Three Months Three Months
     Ended Ended
 (Amounts in $000s, except per share data) December 31, 2023 September 30, 2023
        
 Reconciliation of Adjusted EBITDA to Net Income (Loss):   
  Net income (loss) $43,578  $(13,403)
  Interest expense, net  3,811   4,470 
  Income tax expense (benefit) - current  (2,298)  1,441 
  Income tax expense (benefit) - deferred  10,334   (4,708)
  Depreciation, depletion and amortization  7,635   7,489 
  Accretion of asset retirement obligations  2,029   2,005 
  (Gains) losses on commodity derivatives  (44,714)  23,328 
  Cash settlements received (paid) on expired commodity derivative instruments   (3,191)  (3,890)
  Amortization of gain associated with terminated commodity derivatives 658   - 
  Acquisition and divestiture related costs  3   216 
  Share-based compensation expense  1,672   1,327 
  Exploration costs  17   - 
  Loss on settlement of AROs  315   449 
  Bad debt expense  -   12 
  Pipeline incident loss  4,299   559 
  Other  1,042   188 
  Adjusted EBITDA: $25,190  $19,483 
        
  Reconciliation of Free Cash Flow to Net Income (Loss):   
  Adjusted EBITDA: $25,190  $19,483 
  Less: Cash interest expense   3,660   3,642 
  Less: Capital expenditures   7,102   9,698 
  Free Cash Flow: $14,428  $6,143 
        


 Selected Operating and Financial Data (Tables)    
 Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures  
 Adjusted EBITDA and Free Cash Flow    
        
        
     Twelve Months Twelve Months
     Ended Ended
 (Amounts in $000s, except per share data) December 31, 2023 December 31, 2022
        
        
 Reconciliation of Adjusted EBITDA to Net Income (Loss):   
  Net income (loss) $392,750  $57,875 
  Interest expense, net  17,719   14,101 
  Income tax expense (benefit) - current  4,817   111 
  Income tax expense (benefit) - deferred  (253,796)  - 
  Depreciation, depletion and amortization  28,004   23,950 
  Accretion of asset retirement obligations  7,951   7,081 
  (Gains) losses on commodity derivatives  (40,343)  106,937 
  Cash settlements received (paid) on expired commodity derivative instruments   (8,273)  (148,239)
  Amortization of gain associated with terminated commodity derivatives 658   - 
  Acquisition and divestiture related costs  219   41 
  Share-based compensation expense  5,280   3,086 
  Exploration costs  57   57 
  Loss on settlement of AROs  1,003   908 
  Bad debt expense  98   1 
  Pipeline incident loss  19,981   11,277 
  Pipeline incident settlement  -   12,000 
  LOPI - timing differences  (4,636)  4,636 
  Litigation settlement  (84,875)  - 
  Other  1,418   - 
  Adjusted EBITDA: $88,032  $93,822 
        
  Reconciliation of Free Cash Flow to Net Income (Loss):   
  Adjusted EBITDA: $88,032  $93,822 
  Less: Cash interest expense   16,263   14,402 
  Less: Capital expenditures   33,744   35,797 
  Free Cash Flow: $38,025  $43,623 
        


 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 $000s) December 31, 2023 September 30, 2023
        
 General and administrative expense $8,437 $8,255
 Less: Share-based compensation expense  1,672  1,327
 Less: Acquisition and divestiture costs  3  216
 Less: Bad debt expense    12
 Less: Severance payments  590  188
 Total Cash General and Administrative Expense $6,172 $6,512
        
        
   Twelve Months Twelve Months
   Ended Ended
 (Amounts in $000s) December 31, 2023 December 31, 2022
        
 General and administrative expense $32,984 $30,164
 Less: Share-based compensation expense  5,280  3,086
 Less: Acquisition and divestiture costs  219  41
 Less: Bad debt expense  98  1
 Less: Severance payments  965  
 Total Cash General and Administrative Expense $26,422 $27,036


     
  As ofAs of 
  December 31,December 31, 
  20232022 
 Standardized measure of future net cash flows, discounted at 10% ($M)$626,1311,337,956 
 Add: PV of future income tax, discounted at 10% ($M)$130,882311,412 
 PV-10 ($M)$757,0131,649,368 
     

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 CorteMadera.com & California Media Partners, LLC. All rights reserved.