Amplify Energy Corp. (NYSE: AMPY) (“Amplify” or the “Company”)
announced today its operating and financial results for the second
quarter of 2021 and updated its full-year 2021 guidance.
Key Highlights
-
During the second quarter of 2021, the Company:
-
Achieved average total production of 25.3 MBoepd
-
Generated net cash provided by operating activities of $20.8
million
-
Delivered Adjusted EBITDA of $23.8 million
-
Generated $9.5 million of free cash flow
-
Received full forgiveness from the U.S. Small Business
Administration of the Company’s $5.5 million Paycheck Protection
Program loan
-
As of July 31, 2021, net debt was $214 million, inclusive of $21
million of cash on hand
-
Net Debt to Last Twelve Months (“LTM”) EBITDA of 2.3x1
-
Updated the Company’s full-year 2021 guidance, materially
increasing expectations for Adjusted EBITDA and free cash flow
Martyn Willsher, Amplify’s President and Chief
Executive Officer, commented, “During the second quarter, Amplify
once again achieved outstanding operational and financial results
driven by production outperformance and cost efficiencies.”
“With the significant recovery of commodity
prices in 2021, we are prudently allocating more capital to
projects that have the highest potential to drive future cash flow
generation and advance our strategic objectives. In addition, the
initial phase of the Beta field development program is currently
underway, with preliminary results from our first recompletion and
two sidetrack projects expected in the third and fourth quarters,
respectively. We have also accelerated our capital workover program
in Oklahoma and have elected to participate in several high-return,
non-operated development projects in the Eagle Ford and East Texas,
which will help mitigate natural production declines and enhance
free cash flow.”
Mr. Willsher concluded, “Due to our exceptional
operational performance and stronger commodity prices, we are
materially increasing our free cash flow expectations for the
Company. This is reflected in our improved full-year 2021 free cash
flow guidance of $45-$55 million, and our forecast now projects
free cash flow in excess of $200 million through 2023. This
substantial free cash flow generation will allow us to rapidly
delever our balance sheet, while also providing future optionality
to allocate additional capital towards asset reinvestment,
accretive transactions and return of capital initiatives.”
(1) Net debt as of July 31, 2021 and LTM EBITDA
as of second quarter of 2021
Key Financial Results
During the second quarter of 2021, Amplify
generated $23.8 million of Adjusted EBITDA, an increase of
approximately $1.0 million from the prior quarter. Second quarter
Adjusted EBITDA exceeded internal projections as a result of
production outperformance and cost efficiencies, which were
strengthened by continued commodity price improvement.
Free cash flow, defined as Adjusted EBITDA less
cash interest and capital spending, was $9.5 million in the second
quarter of 2021, a decrease of approximately $4.1 million from the
prior quarter due to increased capital spending detailed later in
this release.
|
|
Second Quarter |
First Quarter |
$ in millions |
|
2021 |
2021 |
Net income (loss) |
|
($35.0 |
) |
($19.3 |
) |
Net
cash provided by operating activities |
|
$20.8 |
|
$15.6 |
|
Average
daily production (MBoe/d) |
|
25.3 |
|
24.7 |
|
Total
revenues |
|
$80.4 |
|
$72.5 |
|
Adjusted EBITDA (a non-GAAP financial measure) |
|
$23.8 |
|
$22.9 |
|
Total
capital |
|
$10.9 |
|
$5.8 |
|
Free
cash flow (a non-GAAP financial measure) |
|
$9.5 |
|
$13.6 |
|
|
|
|
|
|
|
Revolving Credit Facility
As of July 31, 2021, Amplify had net debt of
$214 million, consisting of $235 million outstanding under its
revolving credit facility and $21 million of cash on hand. Net Debt
to LTM EBITDA was 2.3x (net debt as of July 31, 2021 and 2Q21 LTM
EBITDA).
Corporate Production and Pricing
Update
During the second quarter of 2021, average daily
production was approximately 25.3 MBoepd, an increase of 2% from
24.7 MBoepd in the first quarter. Production outperformance during
the quarter was driven primarily by the recovery in East Texas and
Oklahoma from Winter Storm Uri in February and new wells turned
online in the Eagle Ford.
Amplify’s annual natural decline rate continues
to decrease due, in part, to the nature of its mature, PDP-heavy
asset base. The Company expects the decline rate to continue this
downward trend for the foreseeable future as it responsibly manages
natural production decline and engages in high-return workover
projects. The Company’s commodity product mix for the quarter
consisted of 39% crude oil, 16% NGLs, and 45% natural gas. On a
year-over year basis, Amplify’s oil composition increased by
approximately 5%, and the Company expects the low-decline and
increasingly oil-weighted nature of its diverse assets to further
drive long-term profitability.
Total oil, natural gas and NGL revenues in the
second quarter of 2021 were approximately $80.3 million, before the
impact of derivatives, compared to $72.3 million in the first
quarter. The Company realized a loss on commodity derivatives of
$12.7 million during the quarter, compared to a $4.8 million loss
during the previous quarter, consisting of $16.9 million in
realized losses from active contracts, partially offset by a $4.2
million gain from in-the-money contracts related to the second
quarter of 2021 that were monetized in April 2020. The hedging loss
experienced during this quarter was primarily attributed to the
hedges placed earlier in 2020, when the commodity pricing
environment was materially lower, and highlights the substantial
recovery in prices in 2021.
The following table sets forth information
regarding average realized sales prices for the periods
indicated:
|
|
Crude Oil |
NGLs |
Natural Gas |
|
|
ThreeMonthsEnded June 30,
2021 |
|
ThreeMonthsEnded March
31,2021 |
|
ThreeMonthsEnded June 30,
2021 |
|
ThreeMonthsEnded March
31,2021 |
|
ThreeMonthsEnded June 30,
2021 |
|
ThreeMonthsEnded March
31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
exclusive of realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
derivatives |
|
$ |
62.47 |
|
|
$ |
54.03 |
|
|
$ |
25.69 |
|
|
$ |
24.22 |
|
|
$ |
2.65 |
|
|
$ |
2.82 |
|
Realized derivatives |
|
|
(16.75 |
) |
|
|
(10.17 |
) |
|
|
(1.12 |
) |
|
|
(1.32 |
) |
|
|
(0.21 |
) |
|
|
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
derivatives exclusive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of certain deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from revenue |
|
$ |
45.72 |
|
|
$ |
43.86 |
|
|
$ |
24.57 |
|
|
$ |
22.90 |
|
|
$ |
2.44 |
|
|
$ |
2.68 |
|
Certain deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from revenue |
|
|
- |
|
|
|
- |
|
|
|
(1.60 |
) |
|
|
(1.77 |
) |
|
|
(0.22 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price |
|
|
|
|
|
|
|
|
|
|
|
|
inclusive of realized |
|
|
|
|
|
|
|
|
|
|
|
|
derivatives and |
|
|
|
|
|
|
|
|
|
|
|
|
certain deductions |
|
|
|
|
|
|
|
|
|
|
|
|
from revenue |
|
$ |
45.72 |
|
|
$ |
43.86 |
|
|
$ |
22.97 |
|
|
$ |
21.13 |
|
|
$ |
2.22 |
|
|
$ |
2.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses
Lease operating expenses in the second quarter
of 2021 were approximately $28.7 million, or $12.46 per Boe, a
decrease of approximately $0.2 million compared to $28.9 million,
or $13.01 per Boe, in the first quarter. Amplify remains committed
to the disciplined management of operating expenses, and the asset
teams continue to explore additional methods of reducing costs
moving forward.
Severance and Ad Valorem taxes in the second
quarter of 2021 consisted of $5.1 million, an increase of $0.5
million compared to $4.6 million in the first quarter. On a
percentage basis, Amplify paid approximately 6.3% of total oil, NGL
and natural gas sales revenue in taxes this quarter compared to
6.4% in the previous quarter.
Amplify incurred $5.1 million, or $2.20 per Boe,
of gathering, processing and transportation expenses in the second
quarter of 2021, compared to $4.6 million, or $2.06 per Boe, in the
previous quarter. This increase was attributable to higher
production volumes in the second quarter.
Second quarter cash G&A expenses were $5.0
million this quarter, a decrease of $1.5 million from the first
quarter of 2021. In addition, second quarter cash G&A decreased
year-over-year by $1.2 million, which demonstrates the
effectiveness of the transformative corporate expense reduction
plan Amplify undertook in 2020. The Company’s current projected
full-year 2021 cash G&A estimate remains approximately $23
million.
Depreciation, depletion and amortization expense
for the second quarter of 2021 totaled $7.4 million, or $3.21 per
Boe, compared to $7.3 million, or $3.31 per Boe, in the prior
quarter.
Net interest expense was $3.1 million this
quarter, held flat from the first quarter of 2021.
Amplify had an effective tax rate of 0% and did
not record an income tax expense or benefit for the second quarter
of 2021.
Capital Spending Update and
Outlook
Cash capital spending during the second quarter
of 2021 was approximately $10.9 million, an increase of
approximately $5.1 million from $5.8 million in the previous
quarter. The increase was largely attributable to the annual
facility maintenance project at Bairoil, the acceleration of
rod-lift conversions in Oklahoma, and the purchase of long
lead-time materials for Amplify’s previously announced phased
development program at Beta.
The following table details Amplify’s capital
incurred during the quarter and year-to-date:
|
|
Second Quarter |
|
Year to Date |
|
|
2021 Capital |
|
Capital |
|
|
Spend ($MM) |
|
Spend ($MM) |
Southern California (Beta) Drilling and Completion |
|
$ |
1.1 |
|
$ |
1.7 |
Eagle Ford (Non-Op) Drilling
and Completion |
|
$ |
1.6 |
|
$ |
3.6 |
Total Development
Capital |
|
$ |
2.7 |
|
$ |
5.3 |
|
|
|
|
|
Oklahoma Cap. Workovers and
Facilities |
|
$ |
3.0 |
|
$ |
4.7 |
Rockies (Bairoil) Cap.
Workovers and Facilities |
|
$ |
2.7 |
|
$ |
2.8 |
Southern California (Beta)
Cap. Workover and Facilities |
|
$ |
1.9 |
|
$ |
2.9 |
ETX/NLA Cap. Workovers and
Facilities |
|
$ |
0.0 |
|
$ |
0.0 |
Eagle Ford (Non-Op) Cap.
Workovers and Facilities |
|
$ |
0.6 |
|
$ |
1.0 |
Total Workover and
Facilities Capital |
|
$ |
8.2 |
|
$ |
11.4 |
|
|
|
|
|
Total Capital
Spent |
|
$ |
10.9 |
|
$ |
16.7 |
|
|
|
|
|
Asset Operational Update and Statistics
Oklahoma:
-
Production: 601 MBoe; 6.6 MBoepd
-
Commodity Mix: 21% oil, 28% NGLs, 51% natural gas
-
LOE: $4.3 million; $7.08 per Boe
- Capex:
$3.0 million
Amplify’s operating strategy in Oklahoma remains
focused on prioritizing a stable free cash flow profile and
managing production by returning to production only the most
economic wells. Recent workovers have been focused on rod-lift
conversions and ESP optimizations, which reduce future operating
expenses and downtime while generating attractive returns in the
current pricing environment. The workover program was accelerated
in the second quarter of 2021 to boost future production, which led
to higher capital expenditures compared to the prior quarter. As of
June 30, Amplify has converted approximately 45% of the field to
rod lift and anticipates having approximately 50% of the field
converted to rod lift by year end.
Rockies (Bairoil):
-
Production: 310 MBoe; 3.4 MBoepd
-
LOE: $11.2 million; $36.16 per Boe
- Capex:
$2.7 million
The Company continued its CO2 injection and
water-alternating-gas pattern optimization at Bairoil to improve
production performance. The second quarter of 2021 delivered strong
operational reliability of the production facilities, and the
technical team continued extensive evaluation of the reservoir to
facilitate these efforts. Amplify also completed the annual
turnaround during the second quarter, a ten-day field-wide shut-in
to perform production facilities maintenance, on time and under
budget. The Company intends to continue using new technologies,
along with targeted workover activity, to drive further operational
improvements and efficiencies.
Southern California (Beta):
-
Production: 328 MBoe; 3.6 MBoepd
-
LOE: $7.8 million; $23.83 per Boe
- Capex:
$3.0 million
During the second quarter, Amplify deployed
additional capital towards rig and platform upgrades in preparation
for the previously announced phased development program. The first
project, a case hole recompletion, is progressing according to
schedule, with initial production results expected in September.
This project will be followed by two sidetracks of existing wells
in the fourth quarter of 2021, with initial production results
expected by year-end. Amplify remains confident that its
development strategy for the Beta asset will lay the groundwork for
stronger operating margins, significant cash flow generation and
long-term profitability.
East Texas and North Louisiana:
-
Production: 5.6 Bcfe; 61.5 MMcfepd (933 MBoe; 10.3 MBoepd)
-
Commodity Mix: 5% oil, 20% NGLs, 75% natural gas
-
LOE: $4.1 million; $0.73 per Mcfe ($4.38 per Boe)
- Capex:
Less than $0.1 million
The Company’s East Texas asset remains one of
its highest margin and best cash flowing areas. Second quarter
production was 6% higher than the previous quarter as the team
quickly recovered from Winter Storm Uri, while also capitalizing on
workover efficiencies to mitigate natural production decline.
Amplify’s operating strategy continues to focus on prudent
management of production by prioritizing high-return workover
opportunities. The Company also anticipates participating in highly
accretive non-operated development opportunities beginning in the
fourth quarter of 2021, which will provide additional cash flow
generation starting in 2022.
Non-Operated Eagle Ford:
-
Production: 128 MBoe; 1.4 MBoepd
-
Commodity Mix: 77% oil, 12% NGLs, 11% natural gas
-
LOE: $1.3 million; $9.98 per Boe
- Capex:
$2.2 million
As of August 4, 2021, all 48 DUCs from 2020 have
been turned online and the initial production rates of the wells
placed online exceeded the internal type curve average,
demonstrating the continued value generated by the Company’s Eagle
Ford asset.
2021 Guidance Update
The following guidance is subject to the
cautionary statements and limitations described under the
“Forward-Looking Statements” caption at the end of this press
release. Amplify's updated 2021 guidance is based on its current
expectations regarding capital expenditure levels and on the
assumption that market demand and prices for oil and natural gas
will continue at levels that allow for economic production of these
products.
A summary of the guidance is presented
below:
|
|
|
FY 2021E |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low |
|
High |
|
|
|
|
|
|
Net
Average Daily Production |
|
|
|
Oil (MBbls/d) |
|
|
9.9 |
|
- |
10.2 |
|
NGL (MBbls/d) |
|
|
3.6 |
|
- |
4.0 |
|
Natural Gas (MMcf/d) |
|
|
63.0 |
|
- |
65.0 |
|
Total
(MBoe/d) |
|
|
24.0 |
|
- |
25.0 |
|
|
|
|
|
|
|
Commodity
Price Differential / Realizations (Unhedged) |
|
|
|
Oil Differential ($ / Bbl) |
|
|
($3.50 |
) |
- |
($3.75) |
|
NGL Realized Price (% of WTI NYMEX) |
38% |
|
- |
40% |
|
Natural Gas Realized Price (% of Henry Hub) |
83% |
|
- |
87% |
|
|
|
|
|
|
|
Gathering,
Processing and Transportation Costs |
|
|
|
Oil ($ / Bbl) |
|
|
$0.40 |
|
- |
$0.50 |
|
NGL ($ / Bbl) |
|
|
$4.45 |
|
- |
$4.75 |
|
Natural Gas ($ / Mcf) |
|
|
$0.45 |
|
- |
$0.55 |
|
Total ($ /
Boe) |
|
|
$2.00 |
|
- |
$2.30 |
|
|
|
|
|
|
|
Average
Costs |
|
|
|
|
|
Lease Operating ($ / Boe) |
|
$12.50 |
|
- |
$14.00 |
|
Taxes (% of Revenue) (1) |
|
6.2% |
|
- |
6.8% |
|
Recurring Cash General and Administrative ($ / Boe) (2) |
$2.45 |
|
- |
$2.65 |
|
|
|
|
|
|
|
Adjusted
EBITDA ($MM) (3) |
$95 |
|
- |
$105 |
|
Cash Interest
Expense ($MM) |
$11 |
|
- |
$15 |
|
Capital
Expenditures ($MM) |
$30 |
|
- |
$40 |
|
Free Cash
Flow ($MM) (4) |
|
$45 |
|
- |
$55 |
|
|
|
|
|
|
|
(1) Includes production, ad valorem and franchise
taxes(2) Recurring cash general and administrative cost
guidance excludes reorganization expenses and non-cash
compensation(3) Adjusted EBITDA defined as operating income
excluding DD&A expense and including the impact of realized and
terminated derivatives(4) Free cash flow defined as Adjusted
EBITDA less cash interest expense and capital expenditures
Hedging Update
The following table reflects the hedged volumes
under Amplify’s commodity derivative contracts and the average
fixed, floor and ceiling prices at which production is hedged for
July 2021 through December 2023, as of August 4, 2021:
|
|
|
|
|
2021 |
|
|
2022 |
|
2023 |
|
|
|
|
|
|
|
|
|
Natural Gas
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(MMBtu) |
|
|
|
|
970,000 |
|
|
|
695,000 |
|
|
Weighted Average Fixed Price
($) |
|
|
|
$ |
2.49 |
|
|
$ |
2.56 |
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Collars: |
|
|
|
|
|
|
|
|
Two-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (MMBtu) |
|
|
|
|
830,000 |
|
|
|
695,000 |
|
|
140,000 |
Weighted Average Ceiling Price ($) |
|
|
|
$ |
3.28 |
|
|
$ |
3.20 |
|
$ |
2.91 |
Weighted Average Floor Price ($) |
|
|
|
$ |
2.06 |
|
|
$ |
2.46 |
|
$ |
2.40 |
|
|
|
|
|
|
|
|
|
Natural Gas Basis
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(MMBtu) |
|
|
|
|
500,000 |
|
|
|
|
|
Weighted Average Spread
($) |
|
|
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(Bbls) |
|
|
|
|
172,500 |
|
|
|
99,000 |
|
|
55,000 |
Weighted Average Fixed Price
($) |
|
|
|
$ |
49.37 |
|
|
$ |
55.68 |
|
$ |
57.30 |
|
|
|
|
|
|
|
|
|
Oil
Collars: |
|
|
|
|
|
|
|
|
Two-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (Bbls) |
|
|
|
|
|
|
22,500 |
|
|
Weighted Average Ceiling Price ($) |
|
|
|
|
|
$ |
67.42 |
|
|
Weighted Average Floor Price ($) |
|
|
|
|
|
$ |
58.33 |
|
|
|
|
|
|
|
|
|
|
|
Three-way collars |
|
|
|
|
|
|
|
|
Average Monthly Volume (Bbls) |
|
|
|
|
72,500 |
|
|
|
89,000 |
|
|
30,000 |
Weighted Average Ceiling Price ($) |
|
|
|
$ |
50.36 |
|
|
$ |
55.55 |
|
$ |
67.15 |
Weighted Average Floor Price ($) |
|
|
|
$ |
40.00 |
|
|
$ |
42.92 |
|
$ |
55.00 |
Weighted Average Sub-Floor Price ($) |
|
|
|
$ |
30.00 |
|
|
$ |
32.58 |
|
$ |
40.00 |
|
|
|
|
|
|
|
|
|
NGL
Swaps: |
|
|
|
|
|
|
|
|
Average Monthly Volume
(Bbls) |
|
|
|
|
20,300 |
|
|
|
|
|
Weighted Average Fixed Price
($) |
|
|
|
$ |
23.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amplify posted an updated investor presentation containing
additional hedging information on its website,
www.amplifyenergy.com, under the Investor Relations section.
Quarterly Report on Form
10-Q
Amplify’s financial statements and related
footnotes will be available in its Quarterly Report on Form 10-Q
for the quarter ended June 30, 2021, which Amplify expects to file
with the Securities and Exchange Commission on August 4, 2021.
Conference Call
Amplify will host an investor teleconference
tomorrow at 10:00 a.m. Central Time to discuss these operating and
financial results. Interested parties may join the webcast by
visiting Amplify’s website, www.amplifyenergy.com, and clicking on
the webcast link or by dialing (833) 883-4379 at least 15 minutes
before the call begins and providing the Conference ID: 5076814.
The webcast and a telephonic replay will be available for fourteen
days following the call and may be accessed by visiting Amplify’s
website, www.amplifyenergy.com, or by dialing (855) 859-2056 and
providing the Conference ID: 5076814.
About Amplify Energy
Amplify Energy Corp. is an independent oil and
natural gas company engaged in the acquisition, development,
exploitation and production of oil and natural gas properties.
Amplify’s operations are focused in Oklahoma, the Rockies, federal
waters offshore Southern California, East Texas / North Louisiana,
and the Eagle Ford. For more information, visit
www.amplifyenergy.com.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Amplify expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Terminology such as “will,” “would,” “should,” “could,”
“expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,”
“believe,” “target,” “continue,” “potential,” the negative of such
terms or other comparable terminology are intended to identify
forward-looking statements. Amplify believes that these statements
are based on reasonable assumptions, but such assumptions may prove
to be inaccurate. Such statements are also subject to a number of
risks and uncertainties, most of which are difficult to predict and
many of which are beyond the control of Amplify, which may cause
Amplify’s actual results to differ materially from those implied or
expressed by the forward-looking statements. Please read the
Company’s filings with the Securities and Exchange Commission,
including “Risk Factors” in its Annual Report on Form 10-K, and if
applicable, its Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K, and other public filings and press releases for a
discussion of risks and uncertainties that could cause actual
results to differ from those in such forward-looking statements.
All forward-looking statements speak only as of the date of this
press release. All forward-looking statements in this press release
are qualified in their entirety by these cautionary statements.
Amplify undertakes no obligation and does not intend to update or
revise any forward-looking statements, whether as a result of new
information, future results or otherwise.
Use of Non-GAAP Financial
Measures
This press release and accompanying schedules
include the non-GAAP financial measures of Adjusted EBITDA and free
cash flow. The accompanying schedules provide a reconciliation of
these non-GAAP financial measures to their most directly comparable
financial measures calculated and presented in accordance with
GAAP. Amplify’s non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as net income,
operating income, net cash flows provided by operating activities
or any other measure of financial performance calculated and
presented in accordance with GAAP. Amplify’s non-GAAP financial
measures may not be comparable to similarly titled measures of
other companies because they may not calculate such measures in the
same manner as Amplify does.
Adjusted EBITDA. Amplify
defines Adjusted EBITDA as net income or loss, plus interest
expense; income tax expense; depreciation, depletion and
amortization; impairment of goodwill and long-lived assets;
accretion of asset retirement obligations; losses on commodity
derivative instruments; cash settlements received on expired
commodity derivative instruments; losses on sale of assets;
unit-based compensation expenses; exploration costs; acquisition
and divestiture related expenses; amortization of gain associated
with terminated commodity derivatives, bad debt expense; and other
non-routine items, less interest income; gain on extinguishment of
debt; income tax benefit; gains on commodity derivative
instruments; cash settlements paid on expired commodity derivative
instruments; gains on sale of assets and other, net; and other
non-routine items. Adjusted EBITDA is commonly used as a
supplemental financial measure by management and external users of
Amplify’s financial statements, such as investors, research
analysts and rating agencies, to assess: (1) its operating
performance as compared to other companies in Amplify’s industry
without regard to financing methods, capital structures or
historical cost basis; (2) the ability of its assets to generate
cash sufficient to pay interest and support Amplify’s indebtedness;
and (3) the viability of projects and the overall rates of return
on alternative investment opportunities. Since Adjusted EBITDA
excludes some, but not all, items that affect net income or loss
and because these measures may vary among other companies, the
Adjusted EBITDA data presented in this press release may not be
comparable to similarly titled measures of other companies. The
GAAP measure most directly comparable to Adjusted EBITDA is net
cash provided by operating activities.
Free cash flow. Amplify defines
free cash flow as Adjusted EBITDA, less cash income taxes; cash
interest expense; and total capital expenditures. Free cash flow is
an important non-GAAP financial measure for Amplify’s investors
since it serves as an indicator of the Company’s success in
providing a cash return on investment. The GAAP measure most
directly comparable to free cash flow is net cash provided by
operating activities.
Contacts
Jason McGlynn – Chief Financial Officer(832)
219-9055jason.mcglynn@amplifyenergy.com
Selected Operating and Financial Data
(Tables)
Amplify
Energy Corp. |
|
|
|
|
Selected Financial
Data - Unaudited |
|
|
|
|
Statements of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
Oil and natural gas sales |
|
$ |
80,338 |
|
|
$ |
72,331 |
|
|
Other
revenues |
|
|
55 |
|
|
|
138 |
|
|
Total revenues |
|
|
80,393 |
|
|
|
72,469 |
|
|
|
|
|
|
|
|
Costs and
Expenses: |
|
|
|
|
|
Lease operating
expense |
|
|
28,653 |
|
|
|
28,906 |
|
|
Gathering,
processing and transportation |
|
|
5,050 |
|
|
|
4,579 |
|
|
Exploration |
|
|
7 |
|
|
|
16 |
|
|
Taxes other than
income |
|
|
5,071 |
|
|
|
4,613 |
|
|
Depreciation,
depletion and amortization |
|
|
7,389 |
|
|
|
7,347 |
|
|
General and
administrative expense |
|
|
6,030 |
|
|
|
6,921 |
|
|
Accretion of asset
retirement obligations |
|
|
1,638 |
|
|
|
1,615 |
|
|
Realized (gain)
loss on commodity derivatives |
|
|
16,855 |
|
|
|
10,636 |
|
|
Unrealized (gain)
loss on commodity derivatives |
|
|
47,043 |
|
|
|
23,952 |
|
|
Other, net |
|
|
5 |
|
|
|
68 |
|
|
Total costs and expenses |
|
|
117,741 |
|
|
|
88,653 |
|
|
|
|
|
|
|
|
Operating Income
(loss) |
|
|
(37,348 |
) |
|
|
(16,184 |
) |
|
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
|
Interest expense,
net |
|
|
(3,137 |
) |
|
|
(3,112 |
) |
|
Other income
(expense) |
|
|
(54 |
) |
|
|
(26 |
) |
|
Inventory
valuation adjustment |
|
|
- |
|
|
|
- |
|
|
Gain on
extinguishment of debt |
|
|
5,516 |
|
|
|
- |
|
|
Total Other Income
(Expense) |
|
|
2,325 |
|
|
|
(3,138 |
) |
|
|
|
|
|
|
|
|
Income (loss)
before reorganization items, net and income taxes |
|
(35,023 |
) |
|
|
(19,322 |
) |
|
|
|
|
|
|
|
Reorganization
items, net |
|
|
- |
|
|
|
(6 |
) |
|
Net income
(loss) |
|
$ |
(35,023 |
) |
|
$ |
(19,328 |
) |
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
Basic and diluted
earnings (loss) per share |
|
$ |
(0.92 |
) |
|
$ |
(0.51 |
) |
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
Oil and
natural gas revenue: |
|
|
|
|
|
Oil Sales |
|
$ |
56,510 |
|
$ |
49,695 |
|
NGL Sales |
|
|
8,876 |
|
|
7,670 |
|
Natural Gas
Sales |
|
|
14,952 |
|
|
14,966 |
|
Total oil and natural gas sales - Unhedged |
|
$ |
80,338 |
|
$ |
72,331 |
|
|
|
|
|
|
|
Production
volumes: |
|
|
|
|
|
Oil Sales -
MBbls |
|
|
905 |
|
|
920 |
|
NGL Sales -
MBbls |
|
|
368 |
|
|
342 |
|
Natural Gas Sales
- MMcf |
|
|
6,161 |
|
|
5,761 |
|
Total - MBoe |
|
|
2,300 |
|
|
2,222 |
|
Total - MBoe/d |
|
|
25.3 |
|
|
24.7 |
|
|
|
|
|
|
|
Average
sales price (excluding commodity derivatives): |
|
|
|
|
Oil - per Bbl |
|
$ |
62.47 |
|
$ |
54.03 |
|
NGL - per Bbl |
|
$ |
24.09 |
|
$ |
22.45 |
|
Natural gas - per
Mcf |
|
$ |
2.43 |
|
$ |
2.60 |
|
Total - per Boe |
|
$ |
34.93 |
|
$ |
32.56 |
|
|
|
|
|
|
|
Average
unit costs per Boe: |
|
|
|
|
|
Lease operating
expense |
|
$ |
12.46 |
|
$ |
13.01 |
|
Gathering,
processing and transportation |
|
$ |
2.20 |
|
$ |
2.06 |
|
Taxes other than
income |
|
$ |
2.20 |
|
$ |
2.08 |
|
General and
administrative expense |
|
$ |
2.62 |
|
$ |
3.11 |
|
Depletion,
depreciation, and amortization |
|
$ |
3.21 |
|
$ |
3.31 |
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
Balance
Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
$ |
67,367 |
|
|
$ |
64,522 |
|
Property and
equipment, net |
|
|
319,219 |
|
|
|
315,956 |
|
Total assets |
|
|
395,325 |
|
|
|
391,558 |
|
Total current
liabilities |
|
|
122,672 |
|
|
|
82,249 |
|
Long-term
debt |
|
|
235,000 |
|
|
|
255,516 |
|
Total
liabilities |
|
|
482,700 |
|
|
|
444,832 |
|
Total equity |
|
|
(87,375 |
) |
|
|
(53,274 |
) |
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
Statements of Cash Flows Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
$ |
20,845 |
|
|
$ |
15,558 |
|
Net cash provided
by (used in) investing activities |
|
|
(7,459 |
) |
|
|
(4,116 |
) |
Net cash provided
by (used in) financing activities |
|
|
(15,037 |
) |
|
|
(5,005 |
) |
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided from
Operating Activities: |
|
|
|
Net cash provided by operating activities |
|
$ |
20,845 |
|
|
$ |
15,558 |
|
|
Changes in working
capital |
|
|
(4,526 |
) |
|
|
(2,722 |
) |
|
Interest expense,
net |
|
|
3,137 |
|
|
|
3,112 |
|
|
Gain (loss) on
interest rate swaps |
|
|
(18 |
) |
|
|
62 |
|
|
Cash settlements
paid (received) on interest rate swaps |
|
476 |
|
|
|
464 |
|
|
Amortization of
gain associated with terminated commodity derivatives |
|
4,166 |
|
|
|
5,785 |
|
|
Amortization and
write-off of deferred financing fees |
|
(221 |
) |
|
|
(139 |
) |
|
Reorganization
items, net |
|
|
- |
|
|
|
6 |
|
|
Exploration
costs |
|
|
7 |
|
|
|
16 |
|
|
Acquisition and
divestiture related costs |
|
|
7 |
|
|
|
12 |
|
|
Plugging and
abandonment cost |
|
|
5 |
|
|
|
230 |
|
|
Other |
|
|
(31 |
) |
|
|
551 |
|
Adjusted
EBITDA: |
|
$ |
23,847 |
|
|
$ |
22,935 |
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Cash Provided from
Operating Activities: |
|
|
Adjusted
EBITDA: |
|
$ |
23,847 |
|
|
$ |
22,935 |
|
|
Less: Cash
interest expense |
|
|
3,440 |
|
|
|
3,534 |
|
|
Less: Capital
expenditures |
|
|
10,941 |
|
|
|
5,821 |
|
Free Cash
Flow: |
|
$ |
9,466 |
|
|
$ |
13,580 |
|
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
(Amounts in $000s,
except per share data) |
|
June 30, 2021 |
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Income
(Loss): |
|
|
|
|
Net income
(loss) |
|
$ |
(35,023 |
) |
|
$ |
(19,328 |
) |
|
Interest expense,
net |
|
|
3,137 |
|
|
|
3,112 |
|
|
Gain (loss) on
early extinguishment of debt |
|
|
(5,516 |
) |
|
|
- |
|
|
Depreciation,
depletion and amortization |
|
|
7,389 |
|
|
|
7,347 |
|
|
Accretion of asset
retirement obligations |
|
|
1,638 |
|
|
|
1,615 |
|
|
(Gains) losses on
commodity derivatives |
|
|
63,898 |
|
|
|
34,588 |
|
|
Cash settlements
received (paid) on expired commodity derivative instruments |
|
(16,855 |
) |
|
|
(10,636 |
) |
|
Amortization of
gain associated with terminated commodity derivatives |
|
4,166 |
|
|
|
5,785 |
|
|
Acquisition and
divestiture related costs |
|
|
7 |
|
|
|
12 |
|
|
Reorganization
items, net |
|
|
- |
|
|
|
6 |
|
|
Share-based
compensation expense |
|
|
903 |
|
|
|
331 |
|
|
Exploration
costs |
|
|
7 |
|
|
|
16 |
|
|
Loss on settlement
of AROs |
|
|
5 |
|
|
|
68 |
|
|
Bad debt
expense |
|
|
91 |
|
|
|
3 |
|
|
Secondary offering
expenses |
|
|
- |
|
|
|
16 |
|
|
Adjusted
EBITDA: |
|
$ |
23,847 |
|
|
$ |
22,935 |
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Income
(Loss): |
|
|
|
|
Adjusted
EBITDA: |
|
$ |
23,847 |
|
|
$ |
22,935 |
|
|
|
Less: Cash interest expense |
|
|
3,440 |
|
|
|
3,534 |
|
|
|
Less: Capital
expenditures |
|
|
10,941 |
|
|
|
5,821 |
|
|
Free Cash
Flow: |
|
$ |
9,466 |
|
|
$ |
13,580 |
|
|
|
|
|
|
|
|
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Amplify Energy (NYSE:AMPY)
Historical Stock Chart
Von Apr 2023 bis Apr 2024