On March 5, 2025, Amplify Energy Corp (AMPY, Financial) released its 8-K filing detailing its financial and operational results for the fourth quarter and full-year 2024. Amplify Energy Corp is an independent oil and natural gas company focused on the acquisition, development, exploitation, and production of oil and natural gas properties across the United States, with assets in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford.
Performance and Challenges
Amplify Energy Corp reported a net loss of approximately $7.4 million for the fourth quarter of 2024, primarily due to a non-cash unrealized loss on commodity derivatives. This result contrasts with the analyst estimate of a $0.25 earnings per share, indicating a significant shortfall. The company's revenue for the quarter was approximately $67.2 million, falling short of the estimated $76.04 million. The challenges faced by Amplify include lower realized oil prices and unexpected well failures, which impacted production volumes.
Financial Achievements
Despite the challenges, Amplify Energy Corp achieved several financial milestones. The company generated an Adjusted Net Income of $5.1 million in the fourth quarter, excluding the impact of non-cash unrealized losses. Additionally, Amplify reported an Adjusted EBITDA of $21.8 million, although this was a decrease from the previous quarter's $25.5 million. The company also maintained positive free cash flow of $2.9 million, marking the 18th positive quarter out of the last 19.
Key Financial Metrics
Amplify's net debt as of December 31, 2024, was $127 million, with a net debt to LTM Adjusted EBITDA ratio of 1.2x. The company's average daily production was approximately 18.5 Mboepd, a slight decrease from the prior quarter. Lease operating expenses increased to $35.1 million, or $20.57 per Boe, due to increased well failures.
Strategic Initiatives and Future Outlook
Amplify Energy Corp is actively pursuing strategic initiatives, including the completion of a transformational combination with Juniper Capital's portfolio companies, which is expected to enhance its asset base and operational efficiency. The company also plans to continue its Beta development program with six completions planned for 2025. Amplify's focus on reducing operating expenses and maximizing asset value is evident through its expansion of Magnify Energy Services and monetization of East Texas Haynesville interests.
Martyn Willsher, Amplify’s President and CEO, stated, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year.”
Analysis and Conclusion
Amplify Energy Corp's financial performance in the fourth quarter of 2024 highlights both the challenges and opportunities within the oil and gas industry. While the company faced headwinds from lower commodity prices and operational setbacks, its strategic initiatives and focus on cost reduction provide a foundation for future growth. The upcoming merger with Juniper Capital's portfolio companies and continued development at Beta are expected to drive long-term value for shareholders.
Explore the complete 8-K earnings release (here) from Amplify Energy Corp for further details.
