Amplify Energy's Q4 2024: Navigating Contradictions in Well Performance, Drilling Risks, and Growth Strategies
Thursday, Mar 6, 2025 5:44 pm ET
3min read These are the key contradictions discussed in Amplify Energy's latest 2024 Q4 earnings call, specifically including: C-Sand and D-Sand well performance expectations, drilling risk appetite, Beta development well costs and drilling pace, and Magnify services expansion potential:
Production Trends and Operational Challenges:
- Average daily production was 18.5 MBoe per day in Q4, down 0.5 MBoe per day from the prior quarter, mainly due to gas volume disruptions, higher NGL realizations, and ESP failures at Beta.
- Production is expected to rebound with new Beta wells coming online and increased drilling in 2025.
Financial Performance and Hedge Strategy:
- Amplify reported a net loss of $7.4 million in Q4, primarily due to a noncash unrealized loss on commodity derivatives, compared to a net income of $22.7 million in the prior quarter.
- The company added to its hedge position, securing crude oil swaps at an average price of $68.10 per barrel for the second half of 2025 through year-end 2026 and executed natural gas collars for a portion of 2027.
Strategic Acquisitions and Growth Initiatives:
- Amplify announced the acquisition of assets from Juniper Capital, which are expected to provide substantial synergies and enhance free cash flow in 2025 and over a five-year time horizon.
- The acquisition includes 18 million barrels of oil equivalent with a PV-10 value of $335 million, significant acreage, and operational efficiencies, positioning Amplify for growth in the DJ and Powder River Basins.
Capital Investment and Beta Development:
- Beta development is a major focus, with a total capital investment of $15.3 million in Q4, primarily for facility projects and drilling.
- The 2025 capital program is budgeted between $70 million and $80 million, with the majority allocated to Beta development and drilling, aiming for production growth through successful well completions.
stock code include ampy(1)total revenue increase rate(1)total revenue increase rate and stock code include ampy(1)net profit margin(1)p/e (ttm)(1)price to book ratio(1)p/s(1)
Total Revenue YoY%2024.12.31  | Net Profit Margin%2024.12.31  | P/E(TTM)2025.03.06 | Price to Book Ratio2025.03.07 | P/S2025.03.06 |
|---|---|---|---|---|
| -12.62 | 4.39 | 12.47 | -- | -- |
Ticker |
|---|
| AMPYAmplify Energy |
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Production Trends and Operational Challenges:
- Average daily production was 18.5 MBoe per day in Q4, down 0.5 MBoe per day from the prior quarter, mainly due to gas volume disruptions, higher NGL realizations, and ESP failures at Beta.
- Production is expected to rebound with new Beta wells coming online and increased drilling in 2025.
Financial Performance and Hedge Strategy:
- Amplify reported a net loss of $7.4 million in Q4, primarily due to a noncash unrealized loss on commodity derivatives, compared to a net income of $22.7 million in the prior quarter.
- The company added to its hedge position, securing crude oil swaps at an average price of $68.10 per barrel for the second half of 2025 through year-end 2026 and executed natural gas collars for a portion of 2027.
Strategic Acquisitions and Growth Initiatives:
- Amplify announced the acquisition of assets from Juniper Capital, which are expected to provide substantial synergies and enhance free cash flow in 2025 and over a five-year time horizon.
- The acquisition includes 18 million barrels of oil equivalent with a PV-10 value of $335 million, significant acreage, and operational efficiencies, positioning Amplify for growth in the DJ and Powder River Basins.
Capital Investment and Beta Development:
- Beta development is a major focus, with a total capital investment of $15.3 million in Q4, primarily for facility projects and drilling.
- The 2025 capital program is budgeted between $70 million and $80 million, with the majority allocated to Beta development and drilling, aiming for production growth through successful well completions.
Ask Aime: What impact will the latest Amplify Energy earnings call have on the company's financial performance and stock price?
