Amplify Energy Corp. Q4 FY2024 earnings call

• Juniper Transaction: Amplify announced a definitive merger agreement with Juniper Capital to combine with certain portfolio companies. The deal provides scale, expands inventory of drilling locations, and offers synergies. It is expected to close in Q2 2025.
• East Texas Deals: Amplify closed two transactions in East Texas, generating $7.6 million in net proceeds while retaining interests in the properties.
• Beta Development: A50 and C59 wells perform above type curves with IRRs over 100%. 2025 plan to complete 6 additional beta wells, with potential to accelerate drilling based on success.

In the fourth quarter of 2024, average daily production was approximately 18.5 MBoe per day, a decrease of 0.5 MBoe per day from the prior quarter. The production commodity mix for the quarter was 45% oil, 17% NGLs, and 38% natural gas. Lease operating expenses for the fourth quarter were approximately $35.1 million, a $1.8 million increase from the prior quarter. The 5% increase was mostly due to additional unplanned workovers at Beta. The company's total capital investment for the fourth quarter was $15.3 million. For 2025, the production guidance range is 19,000 to 21,000 barrels of oil equivalent per day. Lease operating expense is guided at the midpoint of $143 million, approximately flat compared to 2024. The 2025 capital program is budgeted to be between $70 million and $80 million, with the majority invested at Beta.

• 2025 production guidance: 19,000 to 21,000 barrels of oil equivalent per day.
• Post-Juniper transaction, guidance will be updated.
• Added crude oil swaps covering second half of 2025 through year-end 2026 at an average price of $68.10 per barrel and natural gas collars for part of 2027.

• Market volatility affecting oil and gas prices.
• Unplanned operational issues like ESP failures at Beta impacting production.
• Integration risks with the Juniper Capital transaction.

Q: Can you give context on C-Sand versus D-Sand performance and 2025 drilling risk appetite?

A: C-Sand historical development is limited, but reservoir looks good. 2025 drills are low risk, in proven fault blocks.

Q: Is there an oil price where you might review your '25 CapEx plan?

A: Comfortable in current price range, but may review if prices continue down.

Q: Do you think by the time the deal closes, there's much stub CapEx from the Juniper portfolio?

A: Juniper is finishing drilling two DJ wells, flexibility in drilling plan for remainder of 2025 and 2026.

Q: What's the potential for Magnify with the Juniper assets?

A: Will look at Magnify expansion into the Wyoming area with Juniper assets.