Analyst Summary:
Amplify Energy Corp. released its operating and financial results for the fourth quarter and full-year 2022, year-end 2022 proved reserves and guidance for full-year 2023. The company reported adjusted EBITDA of $64.5 million for the quarter, and $243.4 million for the full-year 2022. Amplify is optimistic about 2023, aiming to restart their pipeline and bring the Beta field back online. They plan on allocating capital to high-return workovers and non-operated development projects across their mature, diverse portfolio of assets, generating sustainable free cash flow. The company continues to recognize LOPI proceeds at the time they are approved by insurers until the policy period ends on March 31, 2023. The company plans to reduce operating expenses going forward while focusing on enhancing water alternating gas injection performance through targeted well recompletions and conversions, which will offset nominal production declines in some areas. The company has provided guidance for full- year 2023, which assumes a return to production in April 2023 for the Beta field.
Quotes from Amplify Energy CEO, Martyn Willsher:
“I am proud of all we accomplished at Amplify in 2022. We have taken significant steps towards a more sustainable future for our business, delivered on our financial commitments, and continued to improve the reliability and efficiency of our operations. Amplify is looking forward to 2023 as we seek the final remaining approval to restart our pipeline and bring the Beta field back online. This year we anticipate allocating capital to high-return workover and non-operated development projects across our mature, diverse portfolio of assets, generating sustainable free cash flow and further improving our balance sheet. We remain confident in our strategy and optimistic about the future of our business.”
Forward-looking statements:
The guidance for full-year 2023 is based 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. The guidance assumes Beta returns to production in April 2023.