On August 7, 2024, Amplify Energy Corp (AMPY, Financial) released its 8-K filing detailing the company's financial and operational results for the second quarter of 2024. 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 in the United States. The company's assets are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford.
Performance Overview
Amplify Energy Corp reported a net income of $7.1 million for Q2 2024, a significant turnaround from the net loss of $9.4 million in the previous quarter. The company achieved an average total production of 20.3 MBoepd and generated net cash provided by operating activities of $15.4 million. Adjusted EBITDA for the quarter was $30.7 million, up from $24.9 million in Q1 2024, benefiting from a one-time $7.0 million accounting adjustment.
Financial Achievements
Amplify Energy Corp's financial achievements are noteworthy, especially in the context of the oil and gas industry. The company generated $9.2 million of free cash flow, marking an increase of $6.9 million from the previous quarter. This positive cash flow is crucial for sustaining operations and funding future projects.
Income Statement Highlights
Total revenues excluding hedges were $79.5 million, slightly above the analyst estimate of $79.11 million. The company realized a gain on commodity derivatives of $3.7 million. Lease operating expenses decreased by $2.0 million to $36.3 million, or $19.70 per Boe, compared to the prior quarter. Severance and Ad Valorem taxes were approximately $4.6 million, a slight decrease from $4.9 million in Q1 2024.
Balance Sheet and Cash Flow
As of June 30, 2024, Amplify had net debt of $117.5 million, consisting of $118.0 million outstanding under its revolving credit facility and $0.5 million of cash and cash equivalents. The company's net debt to LTM Adjusted EBITDA ratio was 1.2x. This financial leverage is manageable and indicates a stable financial position.
Operational Highlights
During the second quarter, Amplify successfully drilled and completed the A50 well at Beta, which exceeded expectations with a 30-day peak IP rate of 730 barrels of oil per day. The company plans to drill two more wells in the third quarter on the Eureka platform. Martyn Willsher, Amplify’s President and CEO, commented,
“Amplify again delivered strong operating and financial results for the second quarter, while also continuing the tremendous progress on our key strategic initiatives. 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.”
Updated Guidance and Future Outlook
Based on the strong performance in the first half of the year, Amplify has updated its full-year 2024 guidance. The company now expects to invest $60 – $65 million in capital expenditures, primarily focused on the Beta development program and non-operated drilling opportunities in East Texas and the Eagle Ford. The updated guidance reflects better-than-expected results and strategic investments aimed at increasing production and cash flow in early 2025.
Amplify Energy Corp's Q2 2024 earnings report demonstrates the company's ability to navigate operational challenges and capitalize on strategic opportunities. The positive financial metrics and updated guidance indicate a promising outlook for the remainder of the year.
Explore the complete 8-K earnings release (here) from Amplify Energy Corp for further details.
