Amplify Energy (US:AMPY)2024-03-06 21:12Production 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].