Amplify Energy Corp. (NYSE: AMPY) (“Amplify” or the “Company”)
announced today its operating and financial results for the first
quarter of 2023.
Key Highlights
-
During the first quarter of 2023, the Company:
-
Achieved average total production of 19.4 MBoepd
-
Generated net cash provided by operating activities of $90.3
million and net income of $352.8 million
-
Delivered Adjusted EBITDA of $25.8 million
-
Generated $11.4 million of free cash flow
-
Reduced debt outstanding by $65 million
-
Announced the appointments of Dan Furbee, as the Company’s Senior
Vice President and Chief Operating Officer, and Jim Frew, as the
Company’s Senior Vice President and Chief Financial Officer
-
As of April 30, 2023, net debt was $109 million, consisting of $125
million outstanding under the revolving credit facility and $16
million of cash on hand
-
Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of
1.1x1
-
Reaffirmed our full-year 2023 guidance
-
Southern California Release Incident (the “Incident”) Updates:
-
In late March, Amplify received $85 million in net proceeds from
the settlement regarding its affirmative claims against the
vessels, which was previously announced on March 1, 2023
-
On April 10, 2023, Amplify announced it received the required
approvals from federal regulatory agencies to restart operations at
the Beta field
-
The Company returned the Beta field to production and began selling
oil on April 24, 2023 (after successfully filling the San Pedro Bay
Pipeline and finalizing all required testing)
-
The pipeline is currently operating in accordance with the restart
procedures, which were reviewed and approved by the Pipeline and
Hazardous Materials Safety Administration
(1) Net debt as of April 30,
2023, and LTM Adjusted EBITDA as of the first quarter of 2023
Martyn Willsher, Amplify’s President and Chief
Executive Officer, commented, “Amplify is off to a strong start in
2023. We are excited to report that we have restarted operations at
Beta, with initial production rates exceeding our expectations.
Resumed operations at Beta, coupled with the receipt of the
settlement proceeds and corresponding reduction in debt
outstanding, significantly improve our financial outlook and
represent a new chapter in Amplify’s future.”
Mr. Willsher concluded, “The Company performed
well operationally and financially in the first quarter despite
difficult weather conditions across our assets, and we intend to
continue driving operational efficiencies through additional
high-return workover and non-operated development projects. Our
near-term strategic focus is to build production rates at Beta and
refinance our credit facility, which will allow us to pursue value
enhancing initiatives for our shareholders.”
Southern California Pipeline
Incident
For more information and disclosures regarding
the Incident, please see our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2023, which Amplify expects to file with
the Securities and Exchange Commission (“SEC”) on May 3, 2023.
Key Financial Results
During the first quarter of 2023, the Company
reported net income of approximately $352.8 million. Net income was
positively impacted by the receipt of $84.9 million in net proceeds
from the Beta settlement and recognition of a $259.5 million
deferred income tax benefit, which includes $269.5 million from the
release of a substantial amount of the Company’s valuation
allowance previously offsetting its net deferred tax assets. While
the tax benefit associated with the valuation allowance release
increased net income, it had no impact on Amplify’s current or
future cash flows. Additional information can be found in our
Quarterly Report on Form 10-Q for the quarter ended March 31,
2023.
Amplify generated $25.8 million of Adjusted
EBITDA for the first quarter of 2023, an increase of approximately
$3.9 million from $21.9 million in the prior quarter. The increase
was primarily attributable to lower operating expenses and higher
realized commodity prices (net of hedges), partially offset by
lower production and lower loss of production income (“LOPI”)
proceeds. For the first quarter, the Company recognized $13.5
million of LOPI proceeds, compared to $15.2 million for the prior
quarter, a decrease attributable to a true-up for prior period
settlements in the fourth quarter of 2022. Per the terms of the
LOPI policy, LOPI coverage specific to the Incident ended on March
31, 2023.
Free cash flow, defined as Adjusted EBITDA less
cash interest and capital spending, was $11.4 million in the first
quarter of 2023.
| |
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| |
|
First
Quarter |
Fourth
Quarter |
|
$ in millions |
|
|
2023 |
|
2022 |
|
Net income (loss) |
|
$ |
352.8 |
$ |
30.0 |
|
Net cash provided by operating activities |
|
$ |
90.3 |
$ |
15.2 |
|
Average daily production (MBoe/d) |
|
|
19.4 |
|
20.8 |
|
Total revenues excluding hedges |
|
$ |
79.9 |
$ |
98.9 |
|
Adjusted EBITDA (a non-GAAP financial measure) |
$ |
25.8 |
$ |
21.9 |
|
Total capital |
|
$ |
9.0 |
$ |
5.5 |
|
Free Cash Flow (a non-GAAP financial measure) |
$ |
11.4 |
$ |
12.3 |
| |
|
|
|
Note: 1Q23 net income includes $85 million in Beta settlement
proceeds and the release of $270 million in valuation allowance
Revolving Credit Facility
Amplify is in the process of refinancing its
credit agreement. As previously disclosed, the facility’s
termination date was extended to May 31, 2024 during the last
borrowing base redetermination process. Amplify expects to complete
the refinance process in the later part of the second quarter or in
the early part of the third quarter.
Of the $85 million in proceeds from the Beta
settlement, $65 million was used for repayment of debt under the
facility. The remainder was used to pay Incident-related expenses,
which resulted in a larger-than-expected working capital deficit.
The Company expects to recover these Incident-related amounts
through the insurance claims process, which will positively impact
working capital.
As of April 30, 2023, Amplify had $125 million
outstanding under its credit facility. With a borrowing base of
$190 million and $16 million of cash on hand, Amplify’s liquidity
was $81 million. Net Debt to LTM Adjusted EBITDA was 1.1x (net debt
as of April 30, 2023 and 1Q23 LTM Adjusted EBITDA).
Corporate Production and Pricing
Update
During the first quarter of 2023, average daily
production was approximately 19.4 MBoepd, a decrease of 7% from
20.8 MBoepd in the fourth quarter, primarily due to severe weather
disruptions across multiple basins, third-party interruptions and
natural field declines. The Company’s product mix for the quarter
consisted of 31% crude oil, 19% NGLs, and 50% natural gas.
Total oil, natural gas and NGL revenues for the
first quarter of 2023 were approximately $66.3 million, before the
impact of derivatives, compared to $88.2 million in the prior
quarter. The Company realized a loss on commodity derivatives of
$2.7 million during the quarter, compared to a $27.9 million loss
during the previous quarter. Oil and gas revenues, net of realized
hedges, increased $3.3 million for the first quarter compared to
fourth quarter 2022.
The following table sets forth information
regarding average realized sales prices for the periods
indicated:
|
|
|
Crude Oil ($/Bbl) |
NGLs ($/Bbl) |
Natural Gas ($/Mcf) |
|
|
|
|
Three Months Ended March 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
Three Months Ended March 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
Three Months Ended March 31, 2023 |
|
Three Months Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price exclusive of realized derivatives and certain
deductions from revenue |
|
$ |
72.52 |
|
|
$ |
80.26 |
|
|
$ |
26.67 |
|
|
$ |
27.99 |
|
|
$ |
3.63 |
|
$ |
5.43 |
|
|
|
Realized derivatives |
|
|
(7.32 |
) |
|
|
(23.37 |
) |
|
|
- |
|
|
|
- |
|
|
|
0.23 |
|
|
(2.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price with realized derivatives exclusive of certain
deductions from revenue |
|
$ |
65.20 |
|
|
$ |
56.89 |
|
|
$ |
26.67 |
|
|
$ |
27.99 |
|
|
$ |
3.86 |
|
$ |
3.01 |
|
|
|
Certain deductions from revenue |
|
|
- |
|
|
|
- |
|
|
|
(2.75 |
) |
|
|
(3.32 |
) |
|
|
0.08 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price inclusive of realized derivatives and certain
deductions from revenue |
|
$ |
65.20 |
|
|
$ |
56.89 |
|
|
$ |
23.92 |
|
|
$ |
24.67 |
|
|
$ |
3.94 |
|
$ |
3.12 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses
Lease operating expenses in the first quarter of
2023 were approximately $32.9 million, or $18.89 per Boe, a
decrease of approximately $0.5 million compared to $33.4 million,
or $17.43 per Boe, in the fourth quarter of 2022. The decrease was
primarily attributable to reduced facility and workover projects at
Bairoil and Oklahoma.
Severance and Ad Valorem taxes in the first
quarter were approximately $5.3 million, a decrease of $2.7 million
compared to $8.0 million in the prior quarter. The
quarter-over-quarter decrease was partially due to lower realized
commodity prices. Amplify also recovered $0.4 million from a
one-time positive severance tax adjustment related to its
non-operated Eagle Ford operations. As a result, Severance and Ad
Valorem taxes as a percentage of revenue were approximately 8.0%
this quarter compared to 9.0% in the previous quarter.
Amplify incurred $5.6 million, or $3.21 per Boe,
of gathering, processing and transportation expenses in the first
quarter of 2023, compared to $6.3 million, or $3.30 per Boe, in the
previous quarter. The reduction was primarily attributable to lower
gathering expenses in Oklahoma due to lower commodity prices and
volumes compared to the prior quarter.
First quarter cash G&A expenses were $7.6
million, an increase of $1.5 million from $6.1 million in the
fourth quarter of 2022. This expected increase was primarily due to
2022 year-end processes that impact various cost drivers annually
in the first quarter. The company anticipates that quarterly cash
G&A expenses will decrease throughout the remainder of the
year.
Depreciation, depletion and amortization expense
for the first quarter of 2023 totaled $5.8 million, or $3.33 per
Boe, compared to $6.2 million, or $3.21 per Boe, in the prior
quarter.
Net interest expense was $5.7 million this
quarter, an increase of $1.1 million from $4.6 million in the
fourth quarter of 2023. The increase was due to higher interest
rates in the first quarter, partially offset by lower debt
outstanding under our credit facility.
Due to the large one-time gain associated with
the Beta settlement, the Company incurred approximately $12.5
million of current income tax expense in the first quarter. The
Company is evaluating opportunities to mitigate this expense over
the remainder of the year.
Capital Investment Update
Cash capital investment during the first quarter
of 2023 was approximately $9.0 million, a $3.5 million increase
from $5.5 million in the prior quarter. The majority of capital
investment in the first quarter was related to non-operated
development activity in the Eagle Ford, restart efforts at Beta,
and workover activity in Oklahoma.
The following table details Amplify’s capital
incurred during the quarter:
| |
|
First
Quarter |
|
| |
|
2023
Capital |
|
| |
|
($ MM) |
|
|
Oklahoma |
|
$ |
1.9 |
|
|
| Rockies
(Bairoil) |
|
$ |
(0.1 |
) |
|
| Southern
California (Beta) |
|
$ |
1.9 |
|
|
| East Texas /
North Louisiana |
|
$ |
0.2 |
|
|
| Eagle Ford
(Non-Op) |
|
$ |
5.1 |
|
|
|
Total Capital Invested |
|
$ |
9.0 |
|
|
| |
|
|
|
Asset Operational Update and Statistics
Oklahoma:
-
Production: 560 MBoe; 6.2 MBoepd
-
Commodity Mix: 21% oil, 28% NGLs, 51% natural gas
-
LOE: $5.5 million; $9.84 per Boe
- Capex:
$1.9 million
In Oklahoma, Amplify continues to prioritize a
stable free cash flow profile and manage production through an
active workover program. In the first quarter, production was
impacted primarily by third-party compression issues. Amplify
remains focused on artificial lift and field compression
optimization in an effort to mitigate natural production declines
and reduce future operating expenses and downtime.
Rockies (Bairoil):
-
Production: 308 MBoe; 3.4 MBoepd
-
LOE: $12.3 million; $40.12 per Boe
- Capex:
($0.1) million
Amplify is focused on reducing operating
expenses at Bairoil given its higher fixed-cost nature. The Company
is also dedicated to enhancing injection performance through
targeted well recompletions and conversions to offset nominal
production declines and achieve a stable free cash flow profile. In
the first quarter, production at Bairoil was negatively impacted by
unusually severe weather conditions, but operational conditions
have since improved, and production rates are expected to return to
normal going forward.
Southern California (Beta):
-
Production: 0 MBoe; 0.0 MBoepd
-
LOE: $7.1 million
- Capex:
$1.9 million
Beta’s production and pipeline operations
remained suspended during the first quarter. However, as previously
disclosed, the Company received approvals from all required federal
regulatory agencies to restart operations. On April 24, the Company
began selling crude from wells returned to production. Consistent
with prior updates, as the Company continues to increase production
at Beta, Amplify will invest capital in production enhancing
opportunities, facility upgrades, and projects focused on emissions
reductions.
East Texas and North Louisiana:
-
Production: 4.7 Bcfe; 52.6 MMcfepd (789 MBoe; 8.8 MBoepd)
-
Commodity Mix: 5% oil, 21% NGLs, 74% natural gas
-
LOE: $6.3 million; $1.33 per Mcfe ($8.01 per Boe)
- Capex:
$0.2 million
Amplify’s strategy in East Texas remains
committed to prudent management of production and operating
expenses. Production in the quarter was primarily impacted by
third-party compression interruptions. The Company continues to
prioritize high-return workover projects and field compression
optimization projects, while opportunistically participating in
non-operated development opportunities.
Non-Operated Eagle Ford:
-
Production: 88 MBoe; 1.0 MBoepd
-
Commodity Mix: 81% oil, 9% NGLs, 10% natural gas
-
LOE: $1.7 million; $19.26 per Boe
- Capex:
$5.1 million
Amplify continues to participate in attractive
non-operated Eagle Ford development and recompletion projects. In
the first quarter, production was relatively flat compared to the
prior quarter. The Company participated in the completion of 10
gross (1.0 net) new development projects, including two
recompletion projects, all of which were brought online at the end
the quarter. As a result, the Company is expecting higher
production in the second quarter.
Full-Year 2023 Guidance
The following guidance is subject to the
cautionary statements and limitations described under the
"Forward-Looking Statements" caption at the end of this press
release. Amplify's 2023 guidance is based on its current
expectations regarding capital expenditure levels and on the
assumption that market demand and prices for oil and natural gas
will continue at levels that allow for economic production of these
products.
Based on the operating and financial results for
the first quarter of 2023, Amplify is maintaining its full-year
2023 guidance ranges.
A summary of the guidance is presented
below:
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FY
2023E |
|
| |
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| |
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| |
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Low |
|
High |
|
| |
|
|
|
|
|
|
|
|
| |
|
Net Average Daily Production |
|
|
|
|
| |
|
Oil (MBbls/d) |
|
|
|
7.3 |
|
- |
|
7.9 |
|
|
| |
|
NGL (MBbls/d) |
|
|
|
3.4 |
|
- |
|
3.8 |
|
|
| |
|
Natural Gas (MMcf/d) |
|
|
55.7 |
|
- |
|
61.7 |
|
|
| |
|
Total (MBoe/d) |
|
|
|
20.0 |
|
- |
|
22.0 |
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Commodity Price Differential / Realizations
(Unhedged) |
|
|
|
|
| |
|
Oil Differential ($ / Bbl) |
|
($ |
3.00 |
) |
- |
($ |
3.50 |
) |
|
| |
|
NGL Realized Price (% of WTI NYMEX) |
|
33 |
% |
- |
|
37 |
% |
|
| |
|
Natural Gas Realized Price (% of Henry Hub) |
|
95 |
% |
- |
|
100 |
% |
|
| |
|
|
|
|
|
|
|
|
| |
|
Gathering, Processing and Transportation
Costs |
|
|
|
|
| |
|
Oil ($ / Bbl) |
|
|
$ |
0.70 |
|
- |
$ |
0.95 |
|
|
| |
|
NGL ($ / Bbl) |
|
|
$ |
3.50 |
|
- |
$ |
4.00 |
|
|
| |
|
Natural Gas ($ / Mcf) |
|
$ |
0.65 |
|
- |
$ |
0.85 |
|
|
| |
|
Total ($ / Boe) |
|
|
$ |
2.80 |
|
- |
$ |
3.50 |
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Average Costs |
|
|
|
|
|
|
| |
|
Lease Operating ($ / Boe) |
$ |
17.75 |
|
- |
$ |
19.75 |
|
|
| |
|
Taxes (% of Revenue) (1) |
|
7.5 |
% |
- |
|
8.5 |
% |
|
| |
|
Recurring Cash General and Administrative ($ / Boe) (2) |
$ |
3.30 |
|
- |
$ |
3.80 |
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Adjusted EBITDA ($ MM)
(3)(5) |
$ |
80 |
|
- |
$ |
100 |
|
|
| |
|
Cash Interest Expense ($ MM) |
$ |
12 |
|
- |
$ |
16 |
|
|
| |
|
Capital Expenditures ($ MM) |
$ |
30 |
|
- |
$ |
40 |
|
|
| |
|
Free Cash Flow ($ MM) (4)(5) |
$ |
30 |
|
- |
$ |
50 |
|
|
| |
|
|
|
|
|
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|
|
(1) Includes production, ad valorem and franchise
taxes(2) Recurring cash general and administrative cost
guidance excludes reorganization expenses and non-cash
compensation(3) Refer to “Use of Non-GAAP Financial Measures”
for Amplify’s definition and use of Adjusted EBITDA, a non-GAAP
measure(4) Refer to “Use of Non-GAAP Financial Measures” for
Amplify’s definition and use of free cash flow, a non-GAAP
measure(5) 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
April 2023 through December 2024, as of May 3, 2023:
| |
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|
|
| |
|
|
|
2023 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| |
Natural Gas Collars: |
|
|
|
|
|
| |
Two-way
collars |
|
|
|
|
|
| |
Average Monthly Volume (MMBtu) |
|
|
1,282,222 |
|
|
220,833 |
|
| |
Weighted Average Ceiling Price ($) |
|
$ |
5.81 |
|
$ |
4.73 |
|
| |
Weighted Average Floor Price ($) |
|
$ |
3.49 |
|
$ |
3.31 |
|
| |
|
|
|
|
|
|
| |
Oil
Swaps: |
|
|
|
|
|
| |
Average
Monthly Volume (Bbls) |
|
|
55,000 |
|
|
8,333 |
|
| |
Weighted
Average Fixed Price ($) |
|
$ |
57.31 |
|
$ |
70.00 |
|
| |
|
|
|
|
|
|
| |
Oil
Collars: |
|
|
|
|
|
| |
Three-way
collars |
|
|
|
|
|
| |
Average Monthly Volume (Bbls) |
|
|
50,000 |
|
|
|
| |
Weighted Average Ceiling Price ($) |
|
$ |
74.54 |
|
|
|
| |
Weighted Average Floor Price ($) |
|
$ |
58.00 |
|
|
|
| |
Weighted Average Sub-Floor Price ($) |
|
$ |
43.00 |
|
|
|
| |
|
|
|
|
|
|
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 March 31, 2023, which Amplify expects to file
with the SEC on May 3, 2023.
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) 225-9448 at least 15 minutes before the call begins and
providing the Conference ID: AEC1Q23. A telephonic replay will be
available for fourteen days following the call by dialing (800)
654-1563 and providing the Conference ID: 44231417.
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, the Company’s evaluation and implementation of
strategic alternatives; 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 escalating tensions between Russia and Ukraine
and the potential destabilizing effect such conflict may pose for
the European continent or the global oil and natural gas markets
and effects of inflation; the impact of legislation and
governmental regulations, including those related to climate change
and hydraulic fracturing; and the occurrence or threat of epidemic
or pandemic diseases, including the COVID-19 pandemic, or any
government response to such occurrence or threat. 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 and net debt. 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 expense; depreciation, depletion and
amortization; accretion of asset retirement obligations; losses on
commodity derivative instruments; cash settlements received on
expired commodity derivative instruments; share-based compensation
expenses; exploration costs; loss on settlement of AROs; bad debt
expense; pipeline incident loss; pipeline incident settlement; and
LOPI-timing differences. 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.
Contacts
Jim Frew – Senior Vice President and Chief
Financial Officer(832) 219-9044james.frew@amplifyenergy.com
Michael Jordan – Director, Finance and
Treasurer(832) 219-9051michael.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) |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
| |
Revenues: |
|
|
|
|
| |
|
Oil and natural gas sales |
|
$ |
66,284 |
|
|
$ |
88,199 |
|
| |
|
Other revenues |
|
|
13,586 |
|
|
|
10,748 |
|
| |
|
Total revenues |
|
|
79,870 |
|
|
|
98,947 |
|
| |
|
|
|
|
|
|
|
| |
Costs and Expenses: |
|
|
|
|
| |
|
Lease operating expense |
|
|
32,960 |
|
|
|
33,422 |
|
| |
|
Pipeline incident loss |
|
|
8,279 |
|
|
|
2,999 |
|
| |
|
Gathering, processing and transportation |
|
|
5,602 |
|
|
|
6,336 |
|
| |
|
Exploration |
|
|
26 |
|
|
|
31 |
|
| |
|
Taxes other than income |
|
|
5,293 |
|
|
|
7,980 |
|
| |
|
Depreciation, depletion and amortization |
|
|
5,808 |
|
|
|
6,155 |
|
| |
|
General and administrative expense |
|
|
8,514 |
|
|
|
6,800 |
|
| |
|
Accretion of asset retirement obligations |
|
|
1,942 |
|
|
|
1,839 |
|
| |
|
Realized (gain) loss on commodity derivatives |
|
2,709 |
|
|
|
27,929 |
|
| |
|
Unrealized (gain) loss on commodity derivatives |
|
(17,868 |
) |
|
|
(29,667 |
) |
| |
|
Other, net |
|
|
- |
|
|
|
400 |
|
| |
|
Total costs and expenses |
|
|
53,265 |
|
|
|
64,224 |
|
| |
|
|
|
|
|
|
|
| |
Operating Income (loss) |
|
|
26,605 |
|
|
|
34,723 |
|
| |
|
|
|
|
|
|
|
| |
Other Income (Expense): |
|
|
|
|
| |
|
Interest expense, net |
|
|
(5,737 |
) |
|
|
(4,602 |
) |
| |
|
Other income (expense) |
|
|
73 |
|
|
|
25 |
|
| |
|
Litigation settlement |
|
|
84,875 |
|
|
|
- |
|
| |
|
Total Other Income (Expense) |
|
|
79,211 |
|
|
|
(4,577 |
) |
| |
|
|
|
|
|
|
|
| |
|
Income (loss) before reorganization items, net and income
taxes |
|
105,816 |
|
|
|
30,146 |
|
| |
|
|
|
|
|
|
|
| |
Income tax benefit (expense) - current |
|
|
(12,527 |
) |
|
|
(111 |
) |
| |
Income tax benefit (expense) - deferred |
|
|
259,470 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
| |
|
Net income (loss) |
|
$ |
352,759 |
|
|
$ |
30,035 |
|
| |
|
|
|
|
|
|
|
| |
Earnings per share: |
|
|
|
|
| |
|
Basic and diluted earnings (loss) per share |
|
$ |
8.69 |
|
|
$ |
0.74 |
|
| |
|
|
|
|
|
|
|
| |
Selected Financial Data - Unaudited |
|
|
|
|
| |
Operating Statistics |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
Three
Months |
|
Three
Months |
| |
|
|
|
|
Ended |
|
Ended |
| |
(Amounts in $000s, except per share data) |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
| |
Oil and natural gas revenue: |
|
|
|
|
| |
|
Oil Sales |
|
$ |
38,816 |
|
$ |
46,836 |
| |
|
NGL Sales |
|
|
7,785 |
|
|
8,609 |
| |
|
Natural Gas Sales |
|
|
19,683 |
|
|
32,754 |
| |
|
Total oil and natural gas sales - Unhedged |
$ |
66,284 |
|
$ |
88,199 |
| |
|
|
|
|
|
|
|
| |
Production volumes: |
|
|
|
|
| |
|
Oil Sales - MBbls |
|
|
535 |
|
|
584 |
| |
|
NGL Sales - MBbls |
|
|
325 |
|
|
349 |
| |
|
Natural Gas Sales - MMcf |
|
|
5,303 |
|
|
5,914 |
| |
|
Total - MBoe |
|
|
1,745 |
|
|
1,918 |
| |
|
Total - MBoe/d |
|
|
19.4 |
|
|
20.8 |
| |
|
|
|
|
|
|
|
| |
Average sales price (excluding commodity
derivatives): |
|
|
|
| |
|
Oil - per Bbl |
|
$ |
72.52 |
|
$ |
80.26 |
| |
|
NGL - per Bbl |
|
$ |
23.92 |
|
$ |
24.67 |
| |
|
Natural gas - per Mcf |
|
$ |
3.71 |
|
$ |
5.54 |
| |
|
Total - per Boe |
|
$ |
37.99 |
|
$ |
45.98 |
| |
|
|
|
|
|
|
|
| |
Average unit costs per Boe: |
|
|
|
|
| |
|
Lease operating expense |
|
$ |
18.89 |
|
$ |
17.43 |
| |
|
Gathering, processing and transportation |
|
$ |
3.21 |
|
$ |
3.30 |
| |
|
Taxes other than income |
|
$ |
3.03 |
|
$ |
4.16 |
| |
|
General and administrative expense |
|
$ |
4.88 |
|
$ |
3.55 |
| |
|
Depletion, depreciation, and amortization |
|
$ |
3.33 |
|
$ |
3.21 |
| |
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Selected Financial Data - Unaudited |
|
|
|
|
|
|
|
| |
Balance Sheet Data |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
(Amounts in $000s, except per share data) |
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Assets |
|
|
|
|
|
|
|
| |
|
Cash and Cash Equivalents |
|
$ |
12,755 |
|
|
$ |
- |
|
|
|
|
| |
|
Accounts Receivable |
|
|
65,978 |
|
|
|
80,455 |
|
|
|
|
| |
|
Other Current Assets |
|
|
15,953 |
|
|
|
18,789 |
|
|
|
|
| |
|
|
Total
Current Assets |
|
$ |
94,686 |
|
|
$ |
99,244 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Net Oil and Gas Properties |
|
$ |
343,712 |
|
|
$ |
339,292 |
|
|
|
|
| |
|
Other Long-Term Assets |
|
|
280,934 |
|
|
|
20,942 |
|
|
|
|
| |
|
|
Total
Assets |
|
$ |
719,332 |
|
|
$ |
459,478 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
| |
|
Accounts Payable |
|
$ |
21,728 |
|
|
$ |
38,414 |
|
|
|
|
| |
|
Accrued Liabilities |
|
|
66,645 |
|
|
|
58,449 |
|
|
|
|
| |
|
Other Current Liabilities |
|
|
23,442 |
|
|
|
42,989 |
|
|
|
|
| |
|
|
Total
Current Liabilities |
|
$ |
111,815 |
|
|
$ |
139,852 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Long-Term Debt |
|
$ |
125,000 |
|
|
$ |
190,000 |
|
|
|
|
| |
|
Asset Retirement Obligation |
|
|
116,529 |
|
|
|
114,614 |
|
|
|
|
| |
|
Other Long-Term Liabilities |
|
|
18,994 |
|
|
|
19,577 |
|
|
|
|
| |
|
|
Total
Liabilities |
|
$ |
372,338 |
|
|
$ |
464,043 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Shareholders' Equity |
|
|
|
|
|
|
|
| |
|
Common Stock & APIC |
|
$ |
431,437 |
|
|
$ |
432,637 |
|
|
|
|
| |
|
Warrants |
|
|
- |
|
|
|
- |
|
|
|
|
| |
|
Accumulated Earnings (Deficit) |
|
|
(84,443 |
) |
|
|
(437,202 |
) |
|
|
|
| |
|
|
Total
Shareholders' Equity |
|
$ |
346,994 |
|
|
$ |
(4,565 |
) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Selected Financial Data - Unaudited |
|
|
|
|
| |
Statements of Cash Flows Data |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
Three
Months |
|
Three
Months |
| |
|
|
|
|
Ended |
|
Ended |
| |
(Amounts in $000s, except per share data) |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Net cash provided by (used in) operating activities |
$ |
90,313 |
|
|
$ |
15,155 |
|
| |
Net cash provided by (used in) investing activities |
|
(10,417 |
) |
|
|
(9,972 |
) |
| |
Net cash provided by (used in) financing activities |
|
(67,141 |
) |
|
|
(16,127 |
) |
| |
|
|
|
|
|
|
|
| |
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) |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
| |
Reconciliation of Adjusted EBITDA to Net Cash Provided from
Operating Activities: |
|
|
| |
|
Net cash provided by operating activities |
|
$ |
90,313 |
|
|
$ |
15,155 |
|
| |
|
Changes in working capital |
|
|
(5,740 |
) |
|
|
(5,802 |
) |
| |
|
Interest expense, net |
|
|
5,737 |
|
|
|
4,602 |
|
| |
|
Gain (loss) on interest rate swaps |
|
|
- |
|
|
|
5 |
|
| |
|
Cash settlements paid (received) on interest rate swaps |
|
- |
|
|
|
(447 |
) |
| |
|
Amortization and write-off of deferred financing fees |
|
(461 |
) |
|
|
(180 |
) |
| |
|
Exploration costs |
|
|
26 |
|
|
|
31 |
|
| |
|
Plugging and abandonment cost |
|
|
- |
|
|
|
771 |
|
| |
|
Current income tax expense (benefit) |
|
|
12,527 |
|
|
|
111 |
|
| |
|
Pipeline incident loss |
|
|
8,279 |
|
|
|
2,999 |
|
| |
|
LOPI - timing differences |
|
|
- |
|
|
|
4,636 |
|
| |
|
Litigation settlement |
|
|
(84,875 |
) |
|
|
- |
|
| |
Adjusted EBITDA: |
|
$ |
25,806 |
|
|
$ |
21,881 |
|
| |
|
|
|
|
|
|
|
| |
Reconciliation of Free Cash Flow to Net Cash Provided from
Operating Activities: |
|
|
| |
Adjusted EBITDA: |
|
$ |
25,806 |
|
|
$ |
21,881 |
|
| |
|
Less: Cash interest expense |
|
|
5,437 |
|
|
|
4,063 |
|
| |
|
Less: Capital expenditures |
|
|
8,996 |
|
|
|
5,546 |
|
| |
Free Cash Flow: |
|
$ |
11,373 |
|
|
$ |
12,272 |
|
| |
|
|
|
|
|
|
|
| |
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) |
|
March 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
| |
Reconciliation of Adjusted EBITDA to Net Income
(Loss): |
|
|
|
| |
|
Net income (loss) |
|
$ |
352,759 |
|
|
$ |
30,035 |
|
| |
|
Interest expense, net |
|
|
5,737 |
|
|
|
4,602 |
|
| |
|
Income tax expense (benefit) - current |
|
|
12,527 |
|
|
|
111 |
|
| |
|
Income tax expense (benefit) - deferred |
|
|
(259,470 |
) |
|
|
- |
|
| |
|
Depreciation, depletion and amortization |
|
|
5,808 |
|
|
|
6,155 |
|
| |
|
Accretion of asset retirement obligations |
|
|
1,942 |
|
|
|
1,839 |
|
| |
|
(Gains) losses on commodity derivatives |
|
|
(15,159 |
) |
|
|
(1,738 |
) |
| |
|
Cash
settlements received (paid) on expired commodity derivative
instruments |
|
|
|
(2,709 |
) |
|
|
(27,929 |
) |
| |
|
Share-based compensation expense |
|
|
941 |
|
|
|
740 |
|
| |
|
Exploration costs |
|
|
26 |
|
|
|
31 |
|
| |
|
Loss on settlement of AROs |
|
|
- |
|
|
|
400 |
|
| |
|
Pipeline incident loss |
|
|
8,279 |
|
|
|
2,999 |
|
| |
|
LOPI - timing differences |
|
|
- |
|
|
|
4,636 |
|
| |
|
Litigation settlement |
|
|
(84,875 |
) |
|
|
- |
|
| |
|
Adjusted EBITDA: |
|
$ |
25,806 |
|
|
$ |
21,881 |
|
| |
|
|
|
|
|
|
|
| |
|
Reconciliation of Free Cash Flow to Net Income
(Loss): |
|
|
|
| |
|
Adjusted EBITDA: |
|
$ |
25,806 |
|
|
$ |
21,881 |
|
| |
|
Less: Cash interest expense |
|
|
|
5,437 |
|
|
|
4,063 |
|
| |
|
Less: Capital expenditures |
|
|
|
8,996 |
|
|
|
5,546 |
|
| |
|
Free Cash Flow: |
|
$ |
11,373 |
|
|
$ |
12,272 |
|
| |
|
|
|
|
|
|
|
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
From Jan 2025 to Feb 2025
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
From Feb 2024 to Feb 2025
