Production and Reserves - In Q4 2023, Amplify Energy achieved average total production of 20.8 MBoepd, a 1% increase from 20.6 MBoepd in the prior quarter[11]. - Amplify's year-end 2023 total proved reserves were 98 million barrels of oil equivalent (MMBoe), with a PV-10 value of approximately $757 million using SEC pricing[4]. - Total production volumes for the three months ended December 31, 2023, were 1,910 MBoe, compared to 1,897 MBoe in the previous quarter, showing a slight increase[39]. - Total production volumes increased to 1,910 MBOE for the quarter ended December 31, 2023, compared to 1,897 MBOE for the quarter ended September 30, 2023, representing a 0.7% increase[41]. Financial Performance - For the full year 2023, net cash provided by operating activities was $141.6 million, with a net income of $392.8 million[2]. - The company generated $25.2 million of Adjusted EBITDA in Q4 2023, an increase of approximately 29% from $19.5 million in the prior quarter[6]. - Total revenues for the three months ended December 31, 2023, were $78,985,000, an increase from $76,770,000 for the three months ended September 30, 2023, representing a growth of 2.6%[37]. - Net income for the three months ended December 31, 2023, was $43,578,000, compared to a net loss of $13,403,000 for the previous quarter, indicating a significant turnaround[37]. - Adjusted EBITDA increased to $25,190 million for the quarter ended December 31, 2023, up from $19,483 million for the quarter ended September 30, 2023, a rise of 29.0%[51]. - Net income for the twelve months ended December 31, 2023, was $392,750, compared to $57,875 for the same period in 2022, representing a significant increase[53]. - Adjusted EBITDA for the twelve months ended December 31, 2023, was $88,032, down from $93,822 in 2022, indicating a decrease of approximately 6.0%[53]. - Free Cash Flow for the twelve months ended December 31, 2023, was $38,025, compared to $43,623 in 2022, reflecting a decline of about 12.8%[53]. Cash Flow and Investments - Free cash flow for Q4 2023 was $14.4 million, representing a 136% increase compared to the prior quarter[8]. - Cash capital investment in Q4 2023 was approximately $7.1 million, a decrease from $9.7 million in the prior quarter[18]. - Amplify's total capital invested in Q4 2023 was $7.1 million, with a full-year total of $33.7 million[20]. - The projected capital investments for 2024 are between $50 million and $60 million, with 40% allocated to Beta development[21][22]. - The company plans to invest 85% to 95% of its capital in the first three quarters of 2024 primarily for the Beta development program[23]. Debt and Leverage - The company reduced net debt by approximately $95 million in 2023, with net debt as of December 31, 2023, at $94 million[2]. - Cash and cash equivalents rose significantly to $20,746 million as of December 31, 2023, compared to $6,387 million as of September 30, 2023, an increase of 225.5%[42]. - Total assets increased to $737,674 million as of December 31, 2023, from $717,105 million as of September 30, 2023, a growth of 2.8%[42]. - Total liabilities decreased to $346,638 million as of December 31, 2023, down from $371,068 million as of September 30, 2023, a reduction of 6.6%[42]. Operational Efficiency - Lease operating expenses in Q4 2023 were approximately $34.6 million, or $18.14 per Boe, a decrease from the previous quarter[16]. - Lease operating expenses per Boe decreased to $18.14 in Q4 2023 from $19.54 in Q3 2023, indicating improved cost efficiency[39]. - The company aims to reduce operating costs through initiatives with Magnify Energy Services, which added $0.5 million to Adjusted EBITDA in 2023[22]. Future Outlook - Amplify initiated the Beta development program in March 2024, with the first well spud[2]. - The company expects 2024 to be a transformative year, focusing on high-return development opportunities at Beta and further reducing leverage[3]. - The company expects net average daily oil production in 2024 to range from 8.0 MBbls/d to 8.9 MBbls/d, and natural gas production from 47.0 MMcf/d to 52.5 MMcf/d[24]. - Amplify anticipates Adjusted EBITDA for 2024 to be between $90 million and $110 million[24]. - Initial production results from the four-well development program at Beta are expected in Q2 2024, with projected IRRs exceeding 100%[22]. Incidents and Challenges - The company reported a pipeline incident loss of $4,299,000 for the quarter, a significant increase from $559,000 in the previous quarter, highlighting operational challenges[37]. - The company reported a pipeline incident loss of $19,981 for the twelve months ended December 31, 2023, compared to $11,277 in 2022, indicating an increase of approximately 77.5%[53]. - The company anticipates ongoing evaluation and implementation of strategic alternatives to address financial and operational challenges, including potential acquisitions and capital expenditures[31].

Core Viewpoint - Amplify Energy Corp. reported strong operational and financial results for Q4 and full-year 2023, highlighting significant production increases, cash flow generation, and strategic initiatives for 2024 development [1][2][6]. Financial Performance - In Q4 2023, Amplify achieved average total production of 20.8 MBoepd, generating net cash from operating activities of $28.4 million and net income of $43.6 million [2][6]. - For the full year 2023, the company reported average total production of 20.5 MBoepd, net cash from operating activities of $141.6 million, and net income of $392.8 million [2][6]. - Adjusted EBITDA for Q4 2023 was $25.2 million, an increase from $19.5 million in Q3 2023, while free cash flow reached $14.4 million, up 136% from the previous quarter [6][7]. Proved Reserves - As of year-end 2023, Amplify's total proved reserves were estimated at 98 million barrels of oil equivalent (MMBoe), with a PV-10 value of approximately $757 million using SEC pricing [3][4]. - The reserves composition included 42% oil, 20% NGLs, and 38% natural gas, with significant portions located in Oklahoma, East Texas, and Bairoil [3][5]. Debt and Capital Structure - By December 31, 2023, Amplify had net debt of $94 million, with a net debt to last twelve months (LTM) Adjusted EBITDA ratio of 1.1x [8][2]. - The company reduced its net debt by approximately $95 million during 2023, improving its balance sheet [2][6]. Strategic Initiatives for 2024 - Amplify initiated the Beta development program in March 2024, focusing on high-return development opportunities expected to enhance future cash flows [2][20]. - The company also began the marketing process for its Bairoil assets, which could provide additional capital for debt reduction and operational flexibility [2][20]. - The 2024 capital investment plan is projected at $50 to $60 million, with a significant portion allocated to Beta development and facility projects [19][25]. Production and Pricing Update - Average daily production in Q4 2023 was 20.8 MBoepd, a slight increase from 20.6 MBoepd in Q3 2023, with Beta production up 12% [9][10]. - The company realized an average crude oil price of $75.31 per barrel in Q4 2023, down from $78.45 in Q3 2023 [11][43]. Cost Management - Lease operating expenses in Q4 2023 were approximately $34.6 million, or $18.14 per Boe, reflecting a decrease from the previous quarter [13][15]. - The company expects continued cost reduction efforts to enhance operational efficiency and profitability [13][21].

Core Viewpoint - Amplify Energy (AMPY) is expected to report a year-over-year decline in earnings and revenues for the quarter ended December 2023, with the earnings report set to be released on March 6, 2024. The actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [1]. Earnings Estimates - The consensus estimate for Amplify Energy's quarterly earnings is $0.21 per share, reflecting a year-over-year decrease of 71.6% [2]. - Expected revenues are projected at $73.33 million, down 25.9% from the same quarter last year [2]. - Over the last 30 days, the consensus EPS estimate has been revised 26.67% lower, indicating a reassessment by analysts [2]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model compares the Most Accurate Estimate to the Zacks Consensus Estimate, providing insights into potential earnings surprises [3]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [4]. Current Earnings Prediction for Amplify Energy - For Amplify Energy, the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [5]. - The stock currently holds a Zacks Rank of 5, indicating a bearish outlook [5][6]. Historical Performance - In the last reported quarter, Amplify Energy was expected to post earnings of $0.20 per share but instead reported a loss of $0.34, resulting in a surprise of -270% [7]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [7]. Conclusion - Amplify Energy does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings. Investors should consider additional factors when deciding to invest in or avoid the stock ahead of the earnings release [8].

HOUSTON, Feb. 22, 2024 (GLOBE NEWSWIRE) -- Amplify Energy Corp. ("Amplify" or the "Company") (NYSE:AMPY) announced today that it will report fourth quarter 2023 financial and operating results after the U.S. financial markets close on March 6, 2024. Management will host a conference call at 10:00 a.m. CT on March 7, 2024 to discuss the Company's results. Interested parties are invited to participate in the conference call by dialing (800) 343-5172 (Conference ID: AEC4Q23) at least 15 minutes prior to the st ...

Anton Petrus/Moment via Getty Images Amplify Energy Corp. (NYSE:AMPY) is a producer of oil and natural gas. It is based in Houston, Texas and has operations in Oklahoma, Southern California, Texas, and it has stakes such as Bairoil in the Rocky Mountains which it is (imminently) planning to put up for sale in Q1 of 2024. This stock traded in the $20 per share range in 2017 and 2018 but trended down from there and plunged in 2020 due to the Covid stock market correction and remained weak due to a 2021 oil sp ...

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $13.4 million in Q3 2023, compared to a net income of $9.8 million in the prior quarter, primarily due to noncash unrealized losses on commodity derivatives from rising commodity prices [16] - Adjusted EBITDA for Q3 2023 was $19.5 million, up $1.9 million from the prior quarter, driven by higher commodity prices [16] - Free cash flow for Q3 2023 was $6.1 million, with cumulative free cash flow generated amounting to $23.6 million [18] Business Line Data and Key Metrics Changes - Total production for Q3 2023 averaged approximately 20,600 barrels of oil equivalent per day, consisting of 38% oil, 18% NGLs, and 44% natural gas [12] - Lease operating expenses for Q3 2023 were $37.1 million, approximately $1.8 million higher than the previous quarter [14] - The company expects to reduce operating expenses in the coming quarters as cost-saving initiatives take effect [15] Market Data and Key Metrics Changes - The company has hedged approximately 65% to 70% of forecasted crude oil production for the remainder of 2023 and 2024, and 75% to 85% hedged for gas production during the same period [20] - Net debt as of October 31 was approximately $104 million, reduced by $79 million or 43% since December 31, 2022 [19] Company Strategy and Development Direction - The company is pursuing monetization of its oil-producing assets in Bairoil, Wyoming, with a marketing process set to commence in Q1 2024 [6] - A development program at the beta field is planned to recommence in the first half of 2024, with expected IRRs well in excess of 100% for new wells [7] - A wholly owned subsidiary, Magnify Energy Services, has been created to provide oilfield services, aiming to improve profitability by reducing costs [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to unlock additional value from its portfolio of cash flow-generating assets [21] - The company reaffirmed its full-year guidance for adjusted EBITDA of $80 million to $100 million and free cash flow of $30 million to $50 million for 2023 [16][18] Other Important Information - The company issued its inaugural sustainability report, detailing efforts to enhance long-term sustainability and corporate governance [11] - The company has been actively pursuing cost-saving initiatives, including electrification of platforms to reduce diesel usage [15] Q&A Session Summary Question: What is Magnify's potential? - Management sees Magnify as a way to better control costs and improve service reliability, with quick payback on investments [24][25] Question: What are the plans for the Bairoil asset? - The company believes Bairoil is a valuable asset and is exploring both outright sale and alternative structures to maximize value [26][27] Question: What is the status of the beta asset? - Management is optimistic about the beta asset's production levels and the potential for future development, with plans for a 4-well program in 2024 [29][31]

Front Matter [Cover Page](index=1&type=section&id=Cover%20Page) The report is a Form 10-Q for the quarter ended September 30, 2023, for Amplify Energy Corp - Filing: **Form 10-Q** for the quarterly period ended September 30, 2023[2](index=2&type=chunk) - Company: **Amplify Energy Corp. (NYSE: AMPY)**[2](index=2&type=chunk)[3](index=3&type=chunk) - Outstanding Shares: **39,096,700 shares** of common stock as of October 31, 2023[3](index=3&type=chunk) [Glossary of Oil and Natural Gas Terms](index=3&type=section&id=Glossary%20of%20Oil%20and%20Natural%20Gas%20Terms) This section defines key technical terms and abbreviations used in the oil and natural gas industry - **Boe (Barrel of Oil Equivalent)** is converted from natural gas at a ratio of six Mcf to one Bbl of oil[6](index=6&type=chunk) - **Proved Reserves** are quantities of oil and gas estimated with reasonable certainty to be economically producible[11](index=11&type=chunk) [Cautionary Note Regarding Forward–Looking Statements](index=8&type=section&id=Cautionary%20Note%20Regarding%20Forward%E2%80%93Looking%20Statements) The report contains forward-looking statements and warns of risks that could cause actual results to differ - The report includes forward-looking statements regarding business strategies, financial performance, and operational plans[19](index=19&type=chunk) - Key risks include the **Southern California pipeline incident's impact**, commodity price volatility, and debt obligations[20](index=20&type=chunk)[22](index=22&type=chunk) - Forward-looking statements are based on management's current expectations and are subject to risks beyond the company's control[23](index=23&type=chunk) PART I—FINANCIAL INFORMATION [Financial Statements](index=11&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS.) This section presents the unaudited condensed consolidated financial statements for the periods ended September 30, 2023 [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $717.1 million, driven by a deferred tax asset, turning stockholders' equity positive Condensed Consolidated Balance Sheet Data (in thousands) | | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $78,254 | $99,244 | | **Property and Equipment, net** | $346,896 | $339,292 | | **Deferred Tax Asset** | $264,130 | $— | | **Total Assets** | **$717,105** | **$459,478** | | **Total Current Liabilities** | $108,257 | $139,852 | | **Long-Term Debt** | $120,000 | $190,000 | | **Total Liabilities** | **$371,068** | **$464,043** | | **Total Stockholders' Equity (Deficit)** | **$346,037** | **$(4,565)** | [Unaudited Condensed Consolidated Statements of Operations](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a Q3 2023 net loss of $13.4 million, a decline from Q3 2022 due to lower sales and derivative losses Statements of Operations Highlights (in thousands, except per share data) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $76,770 | $126,299 | $228,611 | $359,509 | | **Operating Income (Loss)** | $(12,324) | $51,183 | $20,871 | $37,266 | | **Litigation Settlement** | $— | $— | $84,875 | $— | | **Income Tax Benefit (Expense)** | $3,267 | $— | $257,015 | $— | | **Net Income (Loss)** | **$(13,403)** | **$47,234** | **$349,172** | **$27,840** | | **Basic & Diluted EPS** | **$(0.34)** | **$1.17** | **$8.57** | **$0.69** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for the nine-month period increased to $113.2 million, driven by non-cash items Condensed Statements of Cash Flows (in thousands) | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$113,228** | **$49,330** | | **Net cash used in investing activities** | **$(29,965)** | **$(31,553)** | | **Net cash used in financing activities** | **$(76,876)** | **$(25,632)** | | **Net change in cash and cash equivalents** | $6,387 | $(7,855) | | **Cash and cash equivalents, end of period** | **$6,387** | **$10,944** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the pipeline incident settlement, and the release of a tax valuation allowance Disaggregated Revenue (Nine Months Ended Sep 30, in thousands) | Revenue Stream | 2023 | 2022 | | :--- | :--- | :--- | | Oil | $146,780 | $165,686 | | NGLs | $21,973 | $38,789 | | Natural gas | $41,327 | $115,087 | | **Total** | **$210,080** | **$319,562** | - The company entered a new credit facility with a **$150.0 million borrowing base**, with **$120.0 million outstanding** as of September 30, 2023[73](index=73&type=chunk) - Settlements for the Southern California Pipeline Incident included a **$96.5 million payment received** and agreements to pay fines of approximately **$12.0 million**[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - A **$278.8 million tax benefit** was recorded for the nine-month period following the release of the deferred tax asset valuation allowance[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=37&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Management attributes the Q3 2023 net loss to lower prices, while nine-month income was boosted by a settlement and tax benefit - Revenue declines in Q3 and the first nine months of 2023 were primarily driven by **lower commodity prices**[165](index=165&type=chunk)[173](index=173&type=chunk) - Nine-month net income of **$349.2 million** was significantly impacted by an **$84.9 million litigation settlement** and a **$264.1 million deferred tax benefit**[179](index=179&type=chunk)[181](index=181&type=chunk) - Primary liquidity sources are cash from operations and a revolving credit facility with **$15.0 million available**, enhanced by an **$85.0 million settlement payment**[190](index=190&type=chunk)[191](index=191&type=chunk)[200](index=200&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $(13,403) | $47,234 | $349,172 | $27,840 | | **Adjusted EBITDA** | **$19,483** | **$30,750** | **$62,841** | **$71,941** | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) As a smaller reporting company, the company is not required to provide information under this item - As a smaller reporting company, Amplify Energy Corp. is **not required to provide** quantitative and qualitative disclosures about market risk[211](index=211&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Management concluded that disclosure controls and procedures were effective as of September 30, 2023 - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2023[212](index=212&type=chunk) - **No material changes** to the internal control over financial reporting occurred during the most recent quarter[213](index=213&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) This section refers to Note 16 for details on legal proceedings, mainly related to the Southern California Pipeline Incident - For details on legal proceedings related to the Southern California Pipeline Incident, the report refers to **Note 16** of the financial statements[215](index=215&type=chunk) [Risk Factors](index=51&type=section&id=ITEM%201A.%20RISK%20FACTORS.) There have been no material changes to risk factors previously disclosed in the 2022 Form 10-K and Q1 2023 Form 10-Q - There have been **no material changes** to the risk factors disclosed in the 2022 Form 10-K and the Q1 2023 Form 10-Q[216](index=216&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) The company repurchased 4,319 shares in Q3 2023 to cover tax withholdings on vested employee stock units Share Repurchase Activity (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 1 - July 31, 2023 | 4,319 | $6.77 | | August 1 - Aug 31, 2023 | — | $— | | Sep 1 - Sep 30, 2023 | — | $— | [Other Information](index=52&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) New employment agreements for six key executives with updated compensation and severance terms became effective November 1, 2023 - New employment agreements were executed for **six executives**, effective November 1, 2023, replacing all prior agreements[220](index=220&type=chunk) Executive Compensation Under New Agreements | Executive | Title | Annual Base Salary | Target Annual Bonus (% of Salary) | | :--- | :--- | :--- | :--- | | Martyn Willsher | President & CEO | $520,000 | 100% | | James Frew | SVP & CFO | $364,000 | 70% | | Daniel Furbee | SVP & COO | $364,000 | 70% | | Eric Willis | SVP, General Counsel | $364,000 | 70% | | Tony Lopez | SVP Engineering | $322,400 | 70% | | Eric Dulany | VP & CAO | $255,000 | 50% | - The agreements provide for severance payments upon termination without 'cause' or for 'good reason', with **enhanced benefits** following a 'Change of Control'[225](index=225&type=chunk)[226](index=226&type=chunk)

Amplify Energy Corp. (NYSE:AMPY) Q2 2023 Earnings Call Transcript August 9, 2023 11:00 AM ET Company Participants Jim Frew - Senior Vice President & Chief Financial Officer Martyn Willsher - President & Chief Executive Officer Dan Furbee - Senior Vice President & Chief Operating Officer Conference Call Participants John White - Roth MKM Jeffrey Robertson - Water Tower Research Operator Welcome to Amplify Energy' Second Quarter 2023 Investor Conference Call. Amplify's operating and financial results were rel ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=12&type=section&id=Item%201.%20Financial%20Statements) Net income surged in H1 2023 due to a significant deferred tax benefit and a major litigation settlement [Unaudited Condensed Consolidated Balance Sheets](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The company's financial position improved significantly, turning a stockholders' deficit into positive equity | Financial Metric | June 30, 2023 (In thousands) | December 31, 2022 (In thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $88,338 | $99,244 | | **Total Assets** | $715,480 | $459,478 | | **Long-Term Debt** | $120,000 | $190,000 | | **Total Liabilities** | $357,336 | $464,043 | | **Total Stockholders' Equity (Deficit)** | $358,144 | $(4,565) | - The company's equity position shifted from a **deficit of $4.6 million** at the end of 2022 to a **positive equity of $358.1 million** as of June 30, 2023, mainly due to a significant increase in assets and a reduction in total liabilities[32](index=32&type=chunk) [Unaudited Condensed Consolidated Statements of Net Income](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Net%20Income) Net income for H1 2023 reached $362.6 million, reversing a prior-year loss, driven by a deferred tax benefit and a litigation settlement despite lower revenues | Metric (In thousands, except EPS) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Total Revenues** | $151,841 | $233,210 | | **Operating Income (Loss)** | $33,195 | $(13,917) | | **Litigation Settlement** | $84,875 | $0 | | **Deferred Income Tax Benefit** | $259,422 | $0 | | **Net Income (Loss)** | $362,575 | $(19,394) | | **Basic and Diluted EPS** | $8.91 | $(0.51) | - A significant **gain on commodity derivative instruments of $19.0 million** was recorded in the first six months of 2023, compared to a loss of $112.0 million in the prior year period[35](index=35&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased substantially in H1 2023, while cash was primarily used for investing activities and significant debt repayment | Cash Flow Activity (In thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $95,221 | $30,396 | | **Net cash used in investing activities** | $(21,149) | $(16,914) | | **Net cash used in financing activities** | $(72,207) | $(15,590) | | **Net change in cash and cash equivalents** | $1,865 | $(2,108) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include revenue declines from lower commodity prices, a credit facility refinancing, a major deferred tax asset release, and details on the pipeline incident settlement Disaggregation of Revenue (Six Months Ended June 30) | Revenue Stream (In thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Oil | $89,566 | $111,292 | | NGLs | $14,196 | $27,085 | | Natural gas | $29,915 | $68,373 | | **Total** | **$133,677** | **$206,750** | - Subsequent to the quarter end, the company amended its credit facility, establishing a new facility with a **maturity date of July 31, 2027**, and an initial borrowing base of $150.0 million[80](index=80&type=chunk)[159](index=159&type=chunk) - The company released its deferred tax asset valuation allowance in Q1 2023, resulting in a **tax benefit of $279.3 million** for the first six months of 2023[134](index=134&type=chunk)[201](index=201&type=chunk) - The company received a **net payment of approximately $85.0 million** from a settlement related to the Southern California Pipeline Incident[127](index=127&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses lower revenue due to commodity prices, stable Adjusted EBITDA, and enhanced liquidity from a settlement payment and credit facility refinancing [Results of Operations](index=40&type=section&id=Results%20of%20Operations) H1 2023 revenues fell due to lower commodity prices despite flat production, while net income was significantly boosted by a litigation settlement and a deferred tax benefit Production and Pricing (Six Months Ended June 30) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Average Net Production (MBoe/d) | 20.3 | 20.4 | | Average Realized Sales Price (per Boe) | $36.40 | $55.95 | | Oil Price (per Bbl) | $70.99 | $97.84 | | Natural Gas Price (per Mcf) | $2.83 | $6.09 | - The company recorded a **litigation settlement of $84.9 million** in H1 2023 related to anchor strikes on its pipeline, which was a major contributor to net income[185](index=185&type=chunk) - A **deferred income tax benefit of $259.4 million** was recognized in H1 2023 after the company achieved three years of cumulative income, allowing for the release of its valuation allowance[187](index=187&type=chunk) [Adjusted EBITDA](index=46&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA remained stable year-over-year for both the second quarter and first half of 2023, indicating consistent underlying operational performance Adjusted EBITDA Reconciliation (In thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | **Three Months Ended June 30, 2023** | $9,816 | $17,552 | | **Three Months Ended June 30, 2022** | $29,220 | $16,278 | | **Six Months Ended June 30, 2023** | $362,575 | $43,358 | | **Six Months Ended June 30, 2022** | $(19,394) | $41,191 | [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened through improved operating cash flow and a major settlement payment used for debt reduction, further secured by a new credit facility - The company received a **net payment of approximately $85.0 million** from the pipeline incident settlement, which was used to reduce debt outstanding and enhance liquidity[196](index=196&type=chunk) - On July 31, 2023, the company entered into a new credit facility with an initial borrowing base of **$150.0 million** and a **maturity in 2027**[205](index=205&type=chunk) Cash Flow Summary (Six Months Ended June 30, In thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $95,221 | $30,396 | | Net cash used in investing activities | $(21,149) | $(16,914) | | Net cash used in financing activities | $(72,207) | $(15,590) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Amplify Energy Corp. is not required to provide the information for this item - The company is a **smaller reporting company** and is not required to provide quantitative and qualitative disclosures about market risk[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2023[217](index=217&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[218](index=218&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 16 of the financial statements for details on legal proceedings related to the Southern California Pipeline Incident - For a discussion of legal proceedings, the report refers to **Note 16** of the Notes to Unaudited Condensed Consolidated Financial Statements[220](index=220&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2022 Annual Report and Q1 2023 quarterly report - There have been **no material changes** to the risk factors disclosed in the company's 2022 Form 10-K and Q1 2023 Form 10-Q[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased a small number of shares to cover tax withholdings on vested employee stock awards, not as part of a formal buyback plan - Common shares were repurchased to cover required withholding taxes upon the vesting of employee restricted stock and were **not part of a publicly announced buyback program**[223](index=223&type=chunk)

Amplify Energy Corp. (NYSE:AMPY) Q1 2023 Earnings Conference Call May 4, 2023 11:00 AM ET Company Participants Jim Frew - Senior Vice President & Chief Financial Officer Martyn Willsher - President & Chief Executive Officer Dan Furbee - Senior Vice President & Chief Operating Officer Conference Call Participants Operator Welcome to the Amplify Energy's First Quarter 2023 Investment Conference Call. Amplify's operating and financial results were released yesterday after market close on May 3, 2023 and are a ...