Amplitude Energy (AEL) H2 2024 earnings summary

Executive summary

• FY24 marked a pivotal year with record production and financial results, driven by improved Orbost Gas Processing Plant (OGPP) performance, a refreshed executive team, and cost-out initiatives.

• Transformation program delivered $10.5 million in annualised net savings and a 24% reduction in G&A costs, with further savings targeted for FY25.

• Completed major decommissioning of BMG wells in May 2024, with over 360,000 worker hours, no lost time injuries, and total costs expected slightly below $270 million.

• Positioned for growth with the East Coast Supply Project (ECSP), targeting first gas in 2028, with procurement underway and drilling expected to commence in FY 2026.

• Maintained strong safety and environmental performance, with injury rates below industry benchmarks, zero fatalities, and no reportable environmental incidents.

Financial highlights

• FY24 production up 4.2% to 62.1 TJ-equivalent per day, with sales revenue up 11% to $219.0 million.

• Underlying EBITDAX rose 17% to $127.5 million; adjusted cash from operations up 20% to $115 million.

• Production expenses fell to $59.2 million, with a 7% decrease in unit cost to $2.60/GJe.

• Underlying profit after tax improved to $1.4 million, reversing a prior year loss.

• Capital expenditure for FY24 was $23.9 million, in line with guidance, with restoration payments increased due to BMG decommissioning.

Outlook and guidance

• FY25 production guidance is 62–69 TJ-equivalent per day, with production expenses expected between $55–63 million and capex of $50–60 million, mainly for ECSP long-lead items.

• Targeting a group production run rate above 70 TJ per day by year-end and further margin enhancement.

• Additional $12 million in non-recurring costs expected for pipeline inspections in FY25; up to $20 million more for ECSP if sole risked.

• Focus on higher gas production, cost efficiencies, cash generation, and deleveraging ahead of ECSP.