Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors

Are you keeping a close watch on Amplify Energy Corp. (AMPY)? Did you know that in the fourth quarter of 2024, the company reported a net loss of approximately $7.4 million, but also generated an adjusted net income of $5.1 million? With average total production at 18.5 MBoepd and adjusted EBITDA at $21.8 million, understanding Amplify Energy's financial health is crucial for making informed investment decisions. Dive in to explore key financial results, including a free cash flow of $2.9 million for the quarter and strategic moves like the sale of undeveloped Haynesville acreage for $1.4 million, and discover what these figures mean for investors.

Amplify Energy Corp. (AMPY) Revenue Analysis

Understanding Amplify Energy Corp.'s (AMPY) revenue streams is crucial for investors seeking to assess the company's financial health and stability. A detailed analysis of revenue sources, growth rates, and segment contributions provides valuable insights into AMPY's performance and future prospects. You can find additional information about the company's mission and values at Mission Statement, Vision, & Core Values of Amplify Energy Corp. (AMPY).

Breakdown of Primary Revenue Sources:

• Amplify Energy Corp. primarily generates revenue through the production and sale of crude oil and natural gas in the United States.
• According to the latest data, 62% of its revenue comes from crude oil production, while 38% is derived from natural gas production.
• In 2024, the majority of Amplify Energy Corp’s $294.68 million in revenue came from oil, totaling $220.38 million.

Year-over-Year Revenue Growth Rate:

• In 2024, Amplify Energy Corp. experienced a revenue increase of 1.72%, with revenue rising from $289.70 million in 2023 to $294.68 million.
• This growth rate reflects a positive, albeit modest, trend in the company's financial performance.
• However, it's important to note that this follows a significant decrease of -29.04% in 2023, when revenue dropped by $118.56 million.

The historical revenue data and growth rates are detailed in the table below:

Contribution of Different Business Segments to Overall Revenue:

• Amplify Energy Corp. operates primarily in one reportable business segment, which includes the acquisition, development, exploitation, and production of oil and natural gas properties.
• The company's assets are located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and the Eagle Ford.
• In Q4 2024, Amplify Energy Corp. achieved average total production of 18.5 MBoepd (thousands of barrels of oil equivalent per day).
• For the full year 2024, the company achieved average total production of 19.5 MBoepd.

Analysis of Any Significant Changes in Revenue Streams:

• In 2024, Amplify Energy Corp.'s revenue increased by 1.72%, amounting to $294.68 million. This increase is a modest recovery from the previous year's decline of -29.04%.
• The company's strategic initiatives, including development programs at Beta and expansion of Magnify Energy Services, aim to enhance operational efficiency and production, potentially impacting future revenue streams.
• Additionally, Amplify Energy is focusing on monetizing portions of its portfolio in East Texas and participating in joint development opportunities within the Haynesville formation to create incremental value.

Amplify Energy Corp. reported its Q4 and full-year 2024 results, highlighting several key achievements. For Q4 2024, the company achieved average production of 18.5 MBoepd, generated $12.5 million in operating cash flow, and delivered Adjusted EBITDA of $21.8 million despite a net loss of $7.4 million. Full-year 2024 performance included average production of 19.5 MBoepd, $51.3 million in operating cash flow, and $103.0 million in Adjusted EBITDA. The company's year-end 2024 proved reserves totaled 93 MMBoe with a PV-10 value of $736 million.

Amplify Energy Corp. (AMPY) Profitability Metrics

Analyzing Amplify Energy Corp.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health. By comparing these metrics against industry benchmarks and scrutinizing trends over time, investors can gain valuable insights into the company's operational efficiency and cost management strategies.

As of the fiscal year 2024, Amplify Energy's financial performance reveals the following key details:

• Gross Profit: For the year ended December 31, 2024, Amplify Energy Corp. reported a gross profit of $64.72 million.
• Operating Income: The company's operating income for the same period stood at $18.46 million.
• Net Loss: Despite gross and operating profits, Amplify Energy Corp. experienced a net loss of $9.28 million for the year 2024.

Here's a summary of Amplify Energy's profitability metrics for 2024:

To comprehensively evaluate Amplify Energy Corp.'s financial standing, it is essential to compare these profitability ratios with industry averages and scrutinize trends over several years. Such analysis provides a deeper understanding of the company's ability to manage costs, enhance gross margins, and sustain long-term profitability. For further insights, refer to Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors.

Amplify Energy Corp. (AMPY) Debt vs. Equity Structure

Amplify Energy Corp. (AMPY) utilizes a mix of debt and equity to finance its operations and growth. Understanding the specifics of their debt levels, ratios, and financing activities provides key insights into the company's financial strategy.

As of December 31, 2023, Amplify Energy's financial statements reveal the following about its debt:

• Long-term Debt: The company's long-term debt, excluding unamortized discounts and debt issuance costs, stood at $198.7 million.
• Short-term Debt: The company had no outstanding borrowings under its revolving credit facility as of December 31, 2023.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of equity and debt a company is using to finance its assets. While a specific debt-to-equity ratio for Amplify Energy Corp. isn't directly available, we can infer insights from its debt and equity figures.

In assessing Amplify Energy Corp.'s approach to balancing debt and equity, several factors are noteworthy:

• Debt Refinancing: Amplify Energy has actively managed its debt through refinancing activities to optimize terms and maturities.
• Credit Ratings: Credit ratings provide an independent assessment of a company's creditworthiness, influencing borrowing costs and investor confidence.
• Strategic Use of Equity: Companies may issue additional shares to raise capital, strengthen the balance sheet, or fund acquisitions.

Here's a look at selected financial data from Amplify Energy Corp.'s balance sheets:

Interested in learning more? Check out: Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors

Amplify Energy Corp. (AMPY) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial well-being, revealing its capability to meet short-term obligations and sustain long-term operations. For Amplify Energy Corp. (AMPY), assessing these metrics provides crucial insights for investors.

Assessing Amplify Energy Corp.'s Liquidity:

Analyzing liquidity involves examining key ratios and working capital trends to gauge AMPY's ability to cover its immediate liabilities.

• Current and Quick Ratios: These ratios offer a snapshot of AMPY's liquidity position.
  • The current ratio, calculated by dividing current assets by current liabilities, indicates the extent to which AMPY's current assets can cover its short-term liabilities.
  • The quick ratio, which excludes inventories from current assets, provides a more conservative measure of liquidity, reflecting AMPY's ability to meet its obligations without relying on the sale of inventories.
• Analysis of Working Capital Trends: Monitoring working capital trends—the difference between current assets and current liabilities—helps assess AMPY's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A review of AMPY's cash flow statements reveals trends in operating, investing, and financing activities, offering insights into its cash generation and usage.

For the fiscal year 2024, it's essential to analyze these specific figures to understand AMPY's financial health.

Liquidity Positions:

• Current Ratio: As of December 31, 2023, the current ratio was 1.13.
• Quick Ratio: As of December 31, 2023, the quick ratio was 1.07.

Cash Flow Statements Overview:

• Net cash provided by operating activities: For the year ended December 31, 2023, AMPY reported net cash provided by operating activities of $74.7 million.
• Net cash used in investing activities: For the year ended December 31, 2023, AMPY reported net cash used in investing activities of $7.4 million.
• Net cash used in financing activities: For the year ended December 31, 2023, AMPY reported net cash used in financing activities of $2.3 million.

Potential Liquidity Concerns or Strengths

• A current ratio above 1.0 suggests that AMPY has sufficient current assets to cover its short-term liabilities.
• Consistent positive cash flow from operating activities indicates a strong ability to generate cash from its core business operations.

Here is a table summarizing key components of Amplify Energy Corp.'s financial position as of December 31, 2023:

For further insights into Amplify Energy Corp.'s values, refer to Mission Statement, Vision, & Core Values of Amplify Energy Corp. (AMPY).

Amplify Energy Corp. (AMPY) Valuation Analysis

Assessing whether Amplify Energy Corp. (AMPY) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

Currently, detailed 2024 financial data for Amplify Energy Corp. is essential to provide an accurate valuation assessment. Without specific 2024 figures, a comprehensive analysis is challenging. However, based on available information and typical valuation methodologies, here’s a general approach:

Key Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share. A lower P/E ratio might suggest undervaluation relative to peers, but it's crucial to consider industry averages and growth prospects.
• Price-to-Book (P/B) Ratio: This ratio compares the market capitalization of a company to its book value of equity. A P/B ratio below 1.0 could indicate undervaluation, but it depends on the company's asset quality and earnings potential.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is often used for capital-intensive industries like energy. It compares the company's enterprise value (market cap plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). A lower EV/EBITDA ratio may suggest undervaluation.

Stock Price Trends:

Analyzing the stock price trends over the last 12 months (or longer) can provide insights into market sentiment and investor confidence. Significant price declines might suggest undervaluation if the company's fundamentals remain strong.

Dividend Yield and Payout Ratios:

If Amplify Energy Corp. pays dividends, the dividend yield (annual dividend per share divided by stock price) and payout ratio (percentage of earnings paid out as dividends) are important. A high dividend yield could indicate undervaluation, but it's essential to assess the sustainability of the dividend.

Analyst Consensus:

Tracking analyst ratings (buy, hold, or sell) and price targets can offer a view of professional opinions on the stock's valuation. A consensus of 'buy' ratings with price targets above the current stock price might suggest undervaluation.

To illustrate, let’s consider a hypothetical scenario with estimated 2024 data:

Based on this hypothetical data, Amplify Energy Corp. might appear undervalued. However, a comprehensive valuation requires detailed financial analysis, industry comparisons, and consideration of qualitative factors such as management quality and strategic direction.

Read more about Amplify Energy Corp. (AMPY) Financial Health: Breaking Down Amplify Energy Corp. (AMPY) Financial Health: Key Insights for Investors

Amplify Energy Corp. (AMPY) Risk Factors

Amplify Energy Corp. (AMPY) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in recent earnings reports and filings. Understanding these factors is crucial for investors assessing the company's stability and future prospects.

Here's a breakdown of key risks:

• Industry Competition: The oil and gas industry is intensely competitive. Amplify Energy faces competition from larger, better-resourced companies, as well as smaller independent operators. This competition can impact Amplify's ability to acquire new leases, sell its products, and maintain profitability.
• Regulatory Changes: The oil and gas industry is subject to extensive regulation at the federal, state, and local levels. Changes in environmental regulations, drilling permits, and transportation rules can increase operating costs, delay projects, and limit Amplify's activities.
• Market Conditions: Oil and gas prices are volatile and subject to global supply and demand, geopolitical events, and economic conditions. A significant decline in oil and gas prices could reduce Amplify's revenues, profitability, and the value of its reserves.

Operational, financial, and strategic risks often surface in earnings reports and filings. For example:

• Operational Risks: These include risks related to drilling, production, and transportation of oil and gas. Equipment failures, accidents, spills, and natural disasters can disrupt operations, increase costs, and expose Amplify to liability.
• Financial Risks: Amplify's financial health is sensitive to its debt levels, interest rates, and access to capital markets. High debt levels can strain cash flow and limit Amplify's ability to invest in new projects. Changes in interest rates can increase borrowing costs, and difficulty accessing capital markets can restrict Amplify's growth opportunities.
• Strategic Risks: These involve risks related to Amplify's business strategy, acquisitions, and divestitures. Poorly executed acquisitions, unsuccessful exploration efforts, and adverse litigation outcomes can negatively impact Amplify's financial performance.

Mitigation strategies and plans are crucial for addressing these risks. While specific strategies vary depending on the nature of the risk, some common approaches include:

• Hedging: Using financial instruments to protect against price fluctuations in oil and gas markets.
• Insurance: Obtaining insurance coverage to mitigate potential losses from accidents, spills, and other operational risks.
• Compliance Programs: Implementing robust compliance programs to ensure adherence to environmental regulations and other legal requirements.
• Operational Efficiencies: Improving operational efficiencies to reduce costs and enhance profitability.

Below is a table summarizing some potential risks and mitigation strategies:

For more in-depth insights into Amplify Energy Corp. (AMPY) and its investor profile, you can explore: Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who’s Buying and Why?

Amplify Energy Corp. (AMPY) Growth Opportunities

Amplify Energy Corp. (AMPY) faces a dynamic future, with several factors influencing its potential growth. Analyzing these drivers provides insight into the company's strategic direction and financial prospects.

Key growth drivers for Amplify Energy Corp. (AMPY) include:

• Operational Efficiency: Amplify Energy has been focused on improving operational efficiency to reduce costs and increase production from its existing assets.
• Strategic Acquisitions: The company may pursue strategic acquisitions to expand its asset base and increase production.
• Commodity Prices: Future revenue growth is highly dependent on oil and gas prices. Favorable price movements could significantly boost Amplify Energy's financials.

Future revenue growth projections and earnings estimates are subject to variability due to the volatile nature of commodity prices and production levels. Investors should consider these factors when evaluating Amplify Energy Corp. (AMPY)'s growth potential.

Strategic initiatives and partnerships that may drive future growth:

• Cost Reduction Programs: Continued efforts to reduce operating costs can improve profitability.
• Asset Optimization: Optimizing production from existing wells and fields.
• New Technologies: Implementing new technologies to enhance production and reduce environmental impact.

Amplify Energy Corp. (AMPY) possesses certain competitive advantages that could position it for growth:

• Established Infrastructure: The company owns and operates established infrastructure, which can provide a cost advantage.
• Experienced Management Team: An experienced management team can effectively navigate the challenges of the oil and gas industry.
• Strategic Asset Locations: The location of Amplify Energy's assets may provide access to key markets and resources.

Here's a look at some potential financial projections based on available data and industry trends. These figures are speculative and meant for illustrative purposes only:

For more insights into Amplify Energy Corp. (AMPY) and its investors, check out this related article: Exploring Amplify Energy Corp. (AMPY) Investor Profile: Who’s Buying and Why?