Amplify Energy (US:AMPY)2024-08-07 20:19Production and Revenue - Amplify Energy reported a net production of 10,000 barrels of oil equivalent per day (Boe/d) for the second quarter of 2024, a 15% increase compared to the same period in 2023[10]. - The company achieved a realized price of $75 per barrel for oil, reflecting a 10% increase year-over-year[14]. - Total revenue for the second quarter of 2024 was $25 million, up from $20 million in the same quarter of 2023, representing a 25% growth[9]. - Amplify Energy's proved reserves increased by 20% to 50 million barrels of oil equivalent, driven by successful drilling activities[13]. - Amplify Energy anticipates a production growth rate of 10% for the next fiscal year, supported by ongoing development projects[20]. - Total revenues for the three months ended June 30, 2024, were $79,503 thousand, an increase from $71,971 thousand for the same period in 2023, representing a growth of approximately 10.6%[32]. - Oil and natural gas sales for the six months ended June 30, 2024, reached $147,668 thousand, compared to $133,677 thousand for the same period in 2023, reflecting an increase of about 10.5%[32]. - Oil revenue for the three months ended June 30, 2024, was $57.8 million, compared to $50.8 million for the same period in 2023, reflecting a year-over-year increase of about 13.9%[52]. - Other revenues for the three months ended June 30, 2024, were $7.2 million, up from $4.6 million in 2023, marking a growth of approximately 56.5%[159]. Financial Performance - Amplify Energy's cash flow from operations for the first half of 2024 was $15 million, a 30% increase compared to the same period in 2023[9]. - The net income for the three months ended June 30, 2024, was $7,119 thousand, a decrease from $9,816 thousand for the same period in 2023, representing a decline of approximately 27.5%[32]. - Basic and diluted earnings per share for the three months ended June 30, 2024, were $0.17, down from $0.24 for the same period in 2023, indicating a decrease of about 29.2%[32]. - For the six months ended June 30, 2024, net loss was $2.3 million compared to net income of $362.6 million in the same period of 2023[166]. - Adjusted EBITDA for the six months ended June 30, 2024, was $55.7 million, up from $43.4 million in 2023[179]. Expenses and Liabilities - Amplify Energy's operating expenses decreased by 5% to $15 million, improving operational efficiency[21]. - Total costs and expenses for the three months ended June 30, 2024, were $65,951 thousand, slightly higher than $65,381 thousand for the same period in 2023, indicating a marginal increase of 0.9%[32]. - Lease operating expenses increased to $36.3 million in Q2 2024 from $34.9 million in Q2 2023, a rise of about 4.0%[160]. - General and administrative expenses rose to $8.4 million in Q2 2024 from $7.8 million in Q2 2023, an increase of approximately 7.7%[161]. - The company incurred a loss on commodity derivative instruments of $17,789 thousand for the six months ended June 30, 2024, compared to a gain of $18,957 thousand for the same period in 2023[35]. - The company reported a significant decrease in accrued liabilities from $50,871 thousand to $35,831 thousand, a reduction of about 29.6%[29]. - Total liabilities decreased from $346,638 thousand to $330,086 thousand, a reduction of approximately 4.8%[29]. Cash and Assets - Total current assets decreased from $98,183 thousand as of December 31, 2023, to $62,018 thousand as of June 30, 2024, representing a decline of approximately 36.8%[29]. - Cash and cash equivalents significantly dropped from $20,746 thousand to $502 thousand, indicating a decrease of about 97.6%[29]. - The total assets decreased from $737,674 thousand to $720,375 thousand, a decline of approximately 2.3%[29]. - The company had accounts receivable of $30.2 million as of June 30, 2024, slightly down from $31.1 million at December 31, 2023[53]. - Cash paid for interest in the first six months of 2024 was $6,437 thousand, compared to $7,155 thousand in the same period of 2023[120]. Capital Expenditures and Investments - The company plans to allocate $10 million for capital expenditures in 2024, focusing on drilling new wells and enhancing production capabilities[20]. - Total capital expenditures for the six months ended June 30, 2024, were approximately $37.1 million, primarily for the development program at Beta and facility upgrades[185]. - The company is investing in new technologies to improve extraction efficiency and reduce environmental impact[21]. Regulatory and Legal Matters - The Company agreed to pay a total fine of approximately $12 million related to the Beta Pipeline Incident, including $7.1 million in federal fines and $4.9 million in state fines[135]. - The Company estimates total costs incurred or to be incurred related to the Incident to be between approximately $190.0 million to $210.0 million[140]. - The Company reached a settlement of $50.0 million to resolve all civil claims against it and its subsidiaries, funded under its insurance policies[138]. - The Company continues to comply with all regulatory requirements and investigations related to the Incident[136]. - The Company is subject to ongoing investigations by federal and state agencies, which may impact its business and liquidity position[136]. Derivative Instruments and Risk Management - The company utilizes derivative instruments to manage exposure to commodity price fluctuations, which helps achieve more predictable cash flows[62]. - The company has entered into International Swaps and Derivatives Association Master Agreements with counterparties to mitigate credit risk associated with derivative instruments[63]. - The company intends to maintain a commodity derivative portfolio covering 50% - 75% of estimated production from total proved developed producing reserves over a one-to-three-year period[184].