Amplify Energy (US:AMPY) Newsfilterยท2024-03-06 21:05Core 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].