We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. Amplify Energy (NYSE: AMPY ) reported good Q2 2024 results , which included strong early production from its A50 Beta well. It continues to look at Bairoil monetization options and has received bids, although it may ...

Group 1 - Amplify Energy Corp. will participate in the Citadel Securities Energy Investor Days in New York City on October 1st, 2024 [1] - The management of Amplify will engage in one-on-one meetings with investors on the same day [1] Group 2 - Amplify Energy is an independent oil and natural gas company focused on the acquisition, development, exploitation, and production of oil and natural gas properties [2] - The company's operations are concentrated in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas/North Louisiana, and the Eagle Ford (Non-op) [2]

Company Overview - Amplify Energy, founded in 2011, operates in Oklahoma, Southern California, and Texas, with diversified operations across five U.S. basins, which helps mitigate pricing and operational disruptions [4] - The company has long-life, long-production assets that generate sustainable cash flows [4] Recent Performance - Amplify Energy's stock has dropped 5.4% in August 2024, underperforming both the sector and the S&P 500 [1] - The company reported a second-quarter 2024 earnings miss, with earnings of 17 cents per share compared to the expected 31 cents, marking a 45% miss against the Zacks Consensus Estimate [5] - The earnings outlook for 2024 has been revised down by 19%, from $1.28 to $1.16 per share, indicating a 9.4% drop in annual profits [6] Operational Challenges - Production was significantly impacted by flooding in East Texas, which curtailed operations for over 100 days, highlighting the vulnerability to natural events [6] - The company plans to allocate $60 million to $65 million in capital expenditures for 2024, primarily focused on the Beta project and non-operated drilling, raising concerns about free cash flow strain [7] - Amplify Energy's net debt stands at approximately $117.5 million, with a net debt to EBITDA ratio of 1.2X, suggesting limited financial flexibility [7] Environmental and Regulatory Issues - The company has a history of environmental incidents, including a $96.5 million settlement from a 2021 oil spill, which continues to impact its operations [8] - Ongoing regulatory scrutiny and potential future environmental risks could lead to further liabilities or operational restrictions [8] Industry Context - Amplify Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry, which ranks in the bottom 17% of over 250 Zacks Ranked Industries, indicating expected underperformance in the near term [8] Positive Developments - Despite recent challenges, the successful development of the A50 well in the Beta field exceeded production expectations, showcasing untapped potential [9] - The company's strategic participation in high-return non-operated wells in East Texas and the Eagle Ford is expected to enhance cash flow in early 2025 [9] - Continued focus on reducing lease operating expenses is anticipated to improve profitability [9] Valuation Perspective - From a valuation standpoint, Amplify Energy appears attractive relative to the industry but is trading above its 5-year median price/earnings ratio of 4.93 compared to 4.65 [10] - The current premium may not be justified due to unexpected production disruptions and elevated capital allocation [10] Conclusion - Amplify Energy may seem cheap but could be a value trap as its EPS outlook weakens, compounded by being part of a poorly performing industry group [12] - The stock is currently rated as a Zacks Rank 4 (Sell) [12]

The Zacks Oil and Gas - Exploration and Production - United States industry is facing several bearish trends that could put pressure on overall performance. A sluggish economic outlook coupled with China's decelerating growth has led the EIA to revise down its global crude consumption forecast for 2025. Moreover, the accelerating shift toward renewable energy and electric vehicles (EVs) is likely to further dampen traditional oil demand. Despite these challenges, U.S. upstream operators are adapting by prio ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Amplify Energy Corp. (NYSE:AMPY) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET Company Participants Jim Frew – Senior Vice President and Chief Financial Officer Martyn Willsher – President and Chief Executive Officer Dan Furbee – Senior Vice President and Chief Operating Officer Conference Call Participants Jeff Grampp – Alliance Global Partners John White – Roth Capital Subash Chandra – Benchmark Jeff Robertson – Water Tower Research Operator Welcome to Amplify Energy’s Second Quarter 2024 In ...

Amplify Energy (AMPY) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -45.16%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.23 per share when it actually produced a loss of $0.24, delivering a surprise of -204.35%.Over the last four quarters, ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock AMPY NYSE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-35512 Amplify En ...

Financial Performance - In Q2 2024, Amplify Energy achieved average total production of 20.3 MBoepd, generating net cash from operating activities of $15.4 million and net income of $7.1 million, compared to a net loss of $9.4 million in the previous quarter[1][3]. - Adjusted EBITDA for Q2 2024 was $30.7 million, an increase of approximately $5.8 million from $24.9 million in Q1 2024, benefiting from a one-time $7.0 million accounting adjustment[3][4]. - Free cash flow for Q2 2024 was $9.2 million, up $6.9 million from the prior quarter, marking positive free cash flow in 16 of the last 17 fiscal quarters[3][4]. - Total revenues for Q2 2024, excluding hedges, were approximately $79.5 million, with oil, natural gas, and NGL revenues before derivatives at approximately $72.3 million[4][8]. - Total revenues for the three months ended June 30, 2024, were $79,503,000, an increase from $76,299,000 for the three months ended March 31, 2024, representing a growth of 2.3%[29]. - Net income for the three months ended June 30, 2024, was $7,119,000, compared to a net loss of $9,396,000 for the three months ended March 31, 2024, indicating a significant turnaround[29]. - Adjusted EBITDA rose to $30,749,000 for the three months ended June 30, 2024, up from $24,901,000 for the three months ended March 31, 2024, indicating a growth of approximately 23%[40]. - Free Cash Flow increased to $9,151,000 for the three months ended June 30, 2024, compared to $2,283,000 for the three months ended March 31, 2024, reflecting a substantial increase[40]. - The company reported net cash provided by operating activities of $15,389,000 for the three months ended June 30, 2024, up from $7,712,000 for the three months ended March 31, 2024, showing improved operational efficiency[34]. Production and Operations - The A50 development well at Beta achieved a peak IP30 oil rate of approximately 730 Bopd, exceeding company projections, with an expected payback period of about 4 months[1][13]. - Average daily production of oil is projected to be 8.9 MBbls/d for FY 2024, with a low estimate of 8.1 MBbls/d and a high estimate of 8.9 MBbls/d[15]. - Natural gas production is expected to reach 50.0 MMcf/d in FY 2024, with a low estimate of 44.0 MMcf/d[15]. - Production volumes for oil reached 10 MBbls and natural gas was 421 MMcf for the three months ended June 30, 2024, showing operational activity[44]. - Total production volumes remained stable at 1,843 MBoe for the three months ended June 30, 2024, compared to 1,842 MBoe for the three months ended March 31, 2024[32]. Financial Guidance and Projections - Amplify's updated guidance for 2024 includes expectations for crude oil prices at $76/Bbl and natural gas at $2.25/MMBtu, with 85% to 95% of capital investment allocated in the first three quarters[14]. - Adjusted EBITDA for FY 2024 is guided to be between $100 million and $120 million, compared to $95 million in the previous fiscal year[16]. - Free cash flow is projected to be between $30 million and $40 million for FY 2024, up from $25 million in the previous fiscal year[16]. - Capital expenditures are projected to rise to between $60 million and $65 million for FY 2024, compared to $50 million in the previous fiscal year[16]. - The company anticipates a total revenue increase from $4 million to $12 million in other revenue streams for FY 2024[15]. Cost Management - Lease operating expenses in Q2 2024 were approximately $36.3 million, or $19.70 per Boe, a decrease from the previous quarter[10]. - Lease operating expenses are expected to increase to $20.50 per Boe, up from $18.50 per Boe in the previous fiscal year[16]. - The average unit costs per Boe for lease operating expenses decreased to $19.70 for the three months ended June 30, 2024, from $20.78 for the previous quarter, indicating cost management improvements[30]. - Total costs and expenses decreased to $65,951,000 for the three months ended June 30, 2024, down from $85,381,000 for the three months ended March 31, 2024, a reduction of approximately 22.7%[29]. - General and administrative expenses decreased to $8,358,000 for the three months ended June 30, 2024, down from $9,800,000 in the previous quarter[43]. Debt and Liquidity - As of June 30, 2024, Amplify's net debt was $117.5 million, with a net debt to LTM Adjusted EBITDA ratio of 1.2x[1][5]. - Cash and cash equivalents decreased to $502,000 as of June 30, 2024, down from $2,989,000 as of March 31, 2024, indicating a liquidity contraction[33]. - Long-term debt increased to $118,000,000 as of June 30, 2024, compared to $115,000,000 as of March 31, 2024, reflecting a slight increase in financial leverage[33]. Investment Strategy - The company plans to invest $60-65 million in 2024, focusing on Beta development and non-operated drilling opportunities in East Texas and the Eagle Ford[11][14]. - Amplify has added oil and natural gas hedges, with natural gas swaps at a weighted-average price of $3.88 per MMBtu for 2026[18]. - The company executed crude oil swaps for 2025 at a weighted-average price of $74.10 per barrel[18]. - Capital expenditures were $18,004,000 for the three months ended June 30, 2024, compared to $19,092,000 for the three months ended March 31, 2024, indicating a reduction in spending[40]. Operational Focus - Amplify's operations are focused in multiple regions including Oklahoma, the Rockies, and offshore Southern California, indicating a diversified operational strategy[21]. - The company reported a non-cash revenue suspense release of $7,000,000 for the three months ended June 30, 2024, contributing to the adjusted EBITDA[40]. - The company incurred acquisition and divestiture related costs of $9,000 for the three months ended June 30, 2024, down from $14,000 in the previous quarter[40].

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...