Amplify Energy Corp. (OTCQX: AMPY) (“Amplify” or the “Company”)
announced today its operating and financial results for the first
quarter 2019 and updated guidance for the full year 2019.
Key Transaction Highlights and
Events
- Announced a proposed combination on May 6, 2019 with Midstates
Petroleum Company, Inc. (NYSE: MPO) (“Midstates”) in an all-stock,
tax-free merger-of-equals transaction with cost-reducing synergies
and complementary PDP-weighted producing asset base
- Strategic and financial highlights of the proposed combination:
- Creates a diversified platform of long-life, low-risk and
shallow decline assets with an attractive 50/50 liquids and gas
production mix
- Strong pro forma balance sheet and liquidity will allow for
acceleration of capital return programs
- Creates a best-in-class free cash flow generating company with
top-tier G&A efficiency
- Expected to achieve approximately $20 million of annual G&A
synergies
- Enhanced scale will drive lower cost of capital and operating
expenses
- Combined company will trade on the NYSE under the ticker
“AMPY”
Key First Quarter Operational
Highlights
- During the first quarter this year we generated the following:
- Daily production of 21.5 MBoe/d, compared to midpoint guidance
of 23.0 MBoe/d
- Net cash provided by operating activities of $11 million for
the quarter, compared to the midpoint of guidance of $18
million
- Adjusted EBITDA of $19 million, slightly below the guidance
range of $20 million to $24 million
- Free cash flow of $2 million that was within the guidance range
of $2 million to $6 million
- Net Debt to Last Twelve Months (“LTM”) EBITDA of 1.8x
- As of May 3, 2019, net debt was $244 million, inclusive of $21
million of cash on hand
“As we recently announced, Amplify took a
meaningful step in transforming the Company into an aggregator of
PDP weighted assets,” said Ken Mariani, President and Chief
Executive Officer of Amplify. “Our pending merger with
Midstates creates an industry-leading free cash flow generating
company, which improves our flexibility to return capital to
shareholders. The combined company will be able to leverage
benefits of scale which is critical in today’s E&P market and
demonstrates our ability to consolidate across a fragmented group
of sub-scale, mature basin producers. We will remain
opportunistic to identify transactions that offer scalable
operations where we can effectively manage costs and deliver
incremental free cash flow to our shareholders.”
Mr. Mariani continued, "In regards to our first
quarter results, Amplify is pleased to have delivered another
positive free cash flow quarter that was driven by lower capital
spending and favorable realized pricing. Production was
challenged due to a production adjustment from our non-operated
wells in East Texas, completion delays on our non-operated Eagle
Ford wells and a slower production ramp up from our workover
activity on our California properties. Despite these first
quarter timing issues, Amplify has maintained our Adjusted EBITDA
guidance for the year and increased our expectations for second
quarter results as the Eagle Ford wells have now been brought
online.”
Key Financial Results
|
|
First Quarter |
|
Fourth Quarter |
$ in
millions |
|
2019 |
|
2018 |
Average daily production (MBoe/d) |
|
21.5 |
|
|
23.8 |
|
Total
revenues |
|
$65.2 |
|
|
$75.7 |
|
Total
assets |
|
$796.2 |
|
|
$836.8 |
|
Net
Income (loss) |
|
($31.5 |
) |
|
$79.2 |
|
Adjusted EBITDA (a non-GAAP financial measure) |
$19.0 |
|
|
$32.4 |
|
Net
debt (1) |
|
$245.1 |
|
|
$244.3 |
|
Net
debt / LTM Adjusted EBITDA |
|
1.8x |
|
|
1.5x |
|
Net
cash provided by (used in) operating activities |
|
$10.8 |
|
|
$25.2 |
|
Total
capital |
|
$13.1 |
|
|
$10.2 |
|
|
|
|
|
|
(1) As of March 31, 2019 and
December 31, 2018, respectively |
|
|
|
|
Midstates Merger Update
On May 6, 2019, Amplify announced a
merger-of-equals stock combination with Midstates. The
transaction creates a best-in-class free cash flow generating
company, with top-tier G&A metrics after synergy realization
and improved stock liquidity. The pro-forma company also
benefits from low leverage, increased liquidity and the flexibility
to pursue an internal portfolio of assets or utilize the platform
to add external assets through additional M&A activity.
Amplify’s President and Chief Executive Officer Ken Mariani will
lead the combined company. The new Board of Directors will include
members who currently serve on the Amplify and Midstates
Boards.
The merger agreement was unanimously approved by
the participating directors of both boards. The Midstates
Board of Directors has recommended that the Midstates stockholders
vote their shares in favor of the issuance of Midstates common
stock to Amplify stockholders in connection with the merger and the
Amplify Board of Directors has recommended that the Amplify
stockholders vote their shares in favor of the merger.
The transaction is subject to the terms and
conditions set forth in the merger agreement, including holders of
a majority of Midstates stock present at the special meeting having
voted in favor of the stock issuance, holders of a majority of
Amplify stock having voted in favor of the merger, the waiting
period under the U.S. Hart-Scott-Rodino Act having expired or been
terminated early, the Midstates stock being issued to Amplify
stockholders in connection with the merger being listed on the NYSE
and other customary conditions. Amplify sought, and has received, a
technical consent from the lenders in its existing credit facility
permitting the consummation of the merger. The merger is expected
to close in the third quarter of 2019. A detailed
presentation describing the rationale and merits of the merger can
be found at www.amplifyenergy.com or
www.midstatespetroleum.com.
Open Market Share Buyback Program
Update
Subsequent to the closing of the Company’s
fourth quarter 2018 tender offer, Amplify’s board of directors
authorized a share repurchase program of up to $25 million of
Amplify’s outstanding shares of common stock, with repurchases to
begin on or after January 9, 2019. Due to the pending merger,
the Company has terminated the open market repurchase program.
Prior to stopping the program, Amplify had repurchased
169,400 shares at a weighted-average purchase price of $7.35 per
share for total consideration of $1.3 million (including fees) with
approximately $23.7 million remaining available for share
repurchases under the program.
Revolving Credit Facility Update and
Liquidity
The Company’s spring 2019 borrowing base
redetermination was moved to May 2019 in order to incorporate
Midstates’ assets into a revised credit facility. Amplify
anticipates finalizing the revised credit facility in June 2019,
which will be effective concurrently with the closing of the merger
transaction. Midstates’ existing credit facility will be
terminated at closing, with any remaining borrowings repaid from
the combined entity.
As of May 3, 2019, Amplify had total debt of
$265 million under its revolving credit facility, with a current
borrowing base of $425 million. Amplify’s liquidity was $179
million, consisting of $21 million of cash on hand and available
borrowing capacity of $158 million (including the impact of $1.65
million in outstanding letters of credit). Comparison
of First Quarter Guidance vs Actual Results
|
|
|
|
|
|
|
|
|
|
1Q 2019 Guidance (1) |
|
1Q 2019 (2) |
|
|
|
|
|
|
|
|
|
|
|
Low |
|
High |
|
Actuals |
|
Net
Average Daily Production |
|
|
|
|
|
|
Oil (MBbls/d) |
|
8.3 |
|
- |
|
8.8 |
|
8.4 |
|
NGL (MBbls/d) |
|
3.5 |
|
- |
|
3.7 |
|
2.9 |
|
Natural Gas (MMcf/d) |
|
63.4 |
|
- |
|
67.4 |
|
61.0 |
|
Total (MBoe/d) |
|
22.3 |
|
- |
|
23.7 |
|
21.5 |
|
|
|
|
|
|
|
|
|
Commodity
Price Differential / Realizations (Unhedged) |
|
|
|
|
|
|
Oil Differential ($ / Bbl) |
$2.00 |
|
- |
|
$2.50 |
|
$1.65 |
|
NGL Realized Price (% of WTI NYMEX) |
42% |
|
- |
|
47% |
|
40% |
|
Natural Gas Realized Price (% of Henry Hub) |
95% |
|
- |
|
99% |
|
113% |
|
|
|
|
|
|
|
|
|
Gathering,
Processing and Transportation Costs |
|
|
|
|
|
|
Oil ($ / Bbl) |
|
$0.70 |
|
- |
|
$0.80 |
|
$0.70 |
|
NGL ($ / Bbl) |
|
$4.20 |
|
- |
|
$4.70 |
|
$5.03 |
|
Natural Gas ($ / Mcf) |
|
$0.50 |
|
- |
|
$0.60 |
|
$0.51 |
|
Total ($ / Boe) |
|
$2.22 |
|
- |
|
$2.82 |
|
$2.41 |
|
|
|
|
|
|
|
|
|
Average
Costs |
|
|
|
|
|
|
|
Lease Operating ($ / Boe) |
$13.50 |
|
- |
|
$14.50 |
|
$14.96 |
|
Taxes (% of Revenue) (3) |
5.5% |
|
- |
|
6.5% |
|
6.8% |
|
Recurring Cash General and Administrative ($ / Boe) (4) |
$2.70 |
|
- |
|
$3.00 |
|
$3.55 |
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities ($MM)
(5) |
|
|
$18 |
|
|
|
$11 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA ($MM) (6) |
$20 |
|
- |
|
$24 |
|
$19 |
|
Cash Interest Expense ($MM) |
$3 |
|
- |
|
$4 |
|
$4 |
|
Capital Expenditures ($MM) |
$14 |
|
- |
|
$16 |
|
$13 |
|
Free Cash
Flow ($MM) (6) |
$2 |
|
- |
|
$6 |
|
$2 |
|
|
|
|
|
|
|
|
|
(1) Guidance
based on NYMEX strip pricing as of February 22, 2019; Average
prices of $57.95 / Bbl for crude oil and $2.87 / Mcf for natural
gas for 2019 |
(2) Actual
results for 1Q19 impacted by adoption of new GAAP revenue
recognition standard that reduced revenue and GP&T, but had no
net impact on Net Cash Provided by Operating Activities or Adjusted
EBITDA |
(3) Includes
production, ad valorem and franchise taxes |
(4) Recurring
cash general and administrative cost guidance excludes
reorganization expenses and non-cash compensation |
(5) Net Cash
Provided by Operating Activities guidance does not include certain
restructuring and reorganization expenses or changes in working
capital |
(6) Adjusted
EBITDA and Free Cash Flow are non-GAAP financial measures. Please
see “Use of Non-GAAP Financial Measures” for a description of
Adjusted EBITDA and Free Cash Flow and the reconciliation to the
most comparable GAAP financial measure |
Production Update
During the first quarter of 2019, Amplify
produced 21.5 MBoe/d, which was below the low end of our guidance
range for the quarter. First quarter production was primarily
impacted by adjustments to non-operated East Texas production,
along with a delay in completion activity for ten non-operated
Eagle Ford wells and a slower response that anticipated to our
California workover program. The East Texas adjustments were
made in the first quarter 2019 but also impacted 2018 production
volumes, resulting in a larger adjustment to production volumes
recorded in the first quarter. The ten Eagle Ford
non-operated wells were anticipated to be on production in
February, but were not actually brought online until late
March. Production volumes from these wells are in line with
our expectations with an average IP30 of approximately 1,700
Boe/d. An additional ten Eagle Ford wells will be on
production in May as originally scheduled. In California,
Amplify continues to work over some higher volume wells, which we
now anticipate bringing back online in the second quarter. In
addition, we will be shutting down the Bairoil plant for
approximately 14 days in the second quarter for the planned annual
turnaround and to install key equipment in advance of the Bairoil
plant expansion scheduled to be completed in the fourth
quarter.
Operations and Capital Spending
Outlook
Amplify’s capital spend for the first quarter
was approximately $13 million, which was below quarterly guidance
of $14 million to $16 million. The reduced capex was
primarily due to a short-term increase in expense workover projects
at Beta that caused a deferral in capital projects, and a deferred
project at Bairoil, which was deferred to the second quarter.
Approximately 52% of first quarter capital was
allocated to drilling and completions in the Eagle Ford, while
another 30% was spent primarily on equipment for the Bairoil plant
expansion project. The remaining capex focused on workover
and infrastructure related projects in California and East
Texas.
Second Quarter and Full Year 2019
Guidance
The following guidance included in this press
release is subject to the cautionary statements and limitations
described under the "Forward-Looking Statements" caption at the end
of this press release. Amplify's updated 2019 guidance is
based on its current expectations regarding capital expenditure
levels and on the assumption that market demand and prices for oil
and natural gas will continue at levels that allow for economic
production of these products.
Amplify’s second quarter and full year guidance
has been adjusted for first quarter timing events and our outlook
for the remainder of the year. A summary of the guidance is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2019E (1) |
|
FY 2019E (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low |
|
High |
|
Low |
|
High |
|
|
Net
Average Daily Production |
|
|
|
|
|
|
|
|
|
|
Oil (MBbls/d) |
|
|
7.7 |
- |
8.2 |
|
8.1 |
- |
9.0 |
|
|
NGL (MBbls/d) |
|
|
3.2 |
- |
3.4 |
|
3.1 |
- |
3.4 |
|
|
Natural Gas (MMcf/d) |
|
|
59.1 |
- |
62.8 |
|
55.9 |
- |
61.7 |
|
|
Total (MBoe/d) |
|
|
20.8 |
- |
22.1 |
|
20.5 |
- |
22.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity
Price Differential / Realizations (Unhedged) |
|
|
|
|
|
|
|
|
|
|
Oil Differential ($ / Bbl) |
|
$1.50 |
- |
$2.00 |
|
$1.00 |
- |
$1.75 |
|
|
NGL Realized Price (% of WTI NYMEX) |
|
42% |
- |
47% |
|
42% |
- |
47% |
|
|
Natural Gas Realized Price (% of Henry Hub) |
|
95% |
- |
99% |
|
98% |
- |
102% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering,
Processing and Transportation Costs |
|
|
|
|
|
|
|
|
|
|
Oil ($ / Bbl) |
|
|
$0.70 |
- |
$0.80 |
|
$0.65 |
- |
$0.75 |
|
|
NGL ($ / Bbl) |
|
|
$4.00 |
- |
$4.50 |
|
$4.00 |
- |
$4.50 |
|
|
Natural Gas ($ / Mcf) |
|
|
$0.50 |
- |
$0.55 |
|
$0.50 |
- |
$0.55 |
|
|
Total ($ / Boe) |
|
|
$2.22 |
- |
$2.82 |
|
$2.10 |
- |
$2.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Costs |
|
|
|
|
|
|
|
|
|
|
|
Lease Operating ($ / Boe) |
|
$14.00 |
- |
$15.25 |
|
$13.50 |
- |
$15.00 |
|
|
Taxes (% of Revenue) (2) |
|
6.0% |
- |
6.5% |
|
6.0% |
- |
6.5% |
|
|
Recurring Cash General and Administrative ($ / Boe) (3) |
|
$2.75 |
- |
$3.00 |
|
$2.75 |
- |
$3.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities ($MM)
(4) |
|
|
$17 |
|
|
|
$80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA ($MM) (5) |
|
$19 |
- |
$23 |
|
$90 |
- |
$102 |
|
|
Cash Interest Expense ($MM) |
|
$4 |
- |
$5 |
|
$14 |
- |
$18 |
|
|
Capital Expenditures ($MM) |
|
$21 |
- |
$25 |
|
$58 |
- |
$66 |
|
|
Free Cash
Flow ($MM) (5) |
|
($7) |
- |
($3) |
|
$12 |
- |
$24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Guidance
based on NYMEX strip pricing as of April 26, 2019; Average prices
of $60.99 / Bbl for crude oil and $2.78 / Mcf for natural gas for
2019 |
(2) Includes
production, ad valorem and franchise taxes |
(3) Recurring
cash general and administrative cost guidance excludes
reorganization expenses and non-cash compensation |
(4) Net Cash
Provided by Operating Activities guidance does not include certain
restructuring and reorganization expenses or changes in working
capital |
(5) Adjusted
EBITDA and Free Cash Flow are non-GAAP financial measures. Please
see “Use of Non-GAAP Financial Measures” for a description of
Adjusted EBITDA and Free Cash Flow and the reconciliation to the
most comparable GAAP financial measure |
Hedging Update
Since Amplify’s previous hedge update on March
6, 2019, the Company has made further additions to its hedge
position. The following table reflects the hedged volumes
under Amplify’s commodity derivative contracts and the average
fixed or floor prices at which production is hedged for April 2019
through December 2021, as of May 9, 2019.
|
2019 |
|
|
2020 |
|
|
2021 |
Natural Gas Swap
Contracts: |
|
|
|
|
|
|
|
Volume (MMBtu) |
13,860,000 |
|
|
1,800,000 |
|
|
2,250,000 |
|
Weighted Average Fixed Price
($/MMbtu) |
$2.88 |
|
|
$2.65 |
|
|
$2.56 |
|
|
|
|
|
|
|
|
|
|
Natural Gas Collar
Contracts: |
|
|
|
|
|
|
|
|
Volume (MMBtu) |
– |
|
|
6,240,000 |
|
|
1,950,000 |
|
Weighted Average Floor Price
($/MMbtu) |
– |
|
|
$2.64 |
|
|
$2.58 |
|
Weighted Average Ceiling Price
($/MMbtu) |
– |
|
|
$2.96 |
|
|
$2.84 |
|
|
|
|
|
|
|
|
|
|
Total Natural Gas
Derivative Contracts: |
|
|
|
|
|
|
|
|
Total Natural Gas Volumes
Hedged (MMBtu) |
13,860,000 |
|
|
8,040,000 |
|
|
4,200,000 |
|
Total Weighted Average
Fixed/Floor Price ($/MMbtu) |
$2.88 |
|
|
$2.64 |
|
|
$2.57 |
|
|
|
|
|
|
|
|
|
|
Crude Oil Swap
Contracts: |
|
|
|
|
|
|
|
|
Volume (Bbl) |
1,308,000 |
|
|
1,476,600 |
|
|
675,000 |
|
Weighted Average Fixed Price
($/Bbl) |
$53.29 |
|
|
$56.98 |
|
|
$56.25 |
|
|
|
|
|
|
|
|
|
|
Crude Oil Collar
Contracts: |
|
|
|
|
|
|
|
|
Volume (Bbl) |
456,000 |
|
|
171,600 |
|
|
– |
|
Weighted Average Floor Price
($/Bbl) |
$55.00 |
|
|
$55.00 |
|
|
– |
|
Weighted Average Ceiling Price
($/Bbl) |
$63.85 |
|
|
$62.10 |
|
|
– |
|
|
|
|
|
|
|
|
|
|
Total Oil Derivative
Contracts: |
|
|
|
|
|
|
|
|
Total Oil Volumes Hedged
(Bbl) |
1,764,000 |
|
|
1,648,200 |
|
|
675,000 |
|
Total Weighted Average
Fixed/Floor Price ($/Bbl) |
$53.73 |
|
|
$56.77 |
|
|
$56.25 |
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids
Swap Contracts: |
|
|
|
|
|
|
|
|
Volume (Bbl) |
648,000 |
|
|
575,100 |
|
|
273,600 |
|
Weighted Average Fixed Price
($/Bbl) |
$29.96 |
|
|
$28.88 |
|
|
$27.48 |
|
|
|
|
|
|
|
|
|
|
Total Derivative
Contracts: |
|
|
|
|
|
|
|
|
Total Equivalent Volumes
Hedged (Boe) |
4,722,000 |
|
|
3,563,300 |
|
|
1,648,600 |
|
Total Weighted Average
Fixed/Floor Price ($/Boe) |
$32.63 |
|
|
$36.88 |
|
|
$34.15 |
|
Amplify posted an updated hedge presentation
containing additional information on its website,
www.amplifyenergy.com, under the Investor Relations
section.Quarterly Report on Form 10-Q Amplify’s
financial statements and related footnotes will be available in its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2019,
which Amplify expects to file with the Securities and Exchange
Commission on May 9, 2019.
Conference Call
Amplify will host an investor teleconference
today at 10:00 a.m. Central Time to discuss these operating and
financial results. Interested parties may join the webcast by
visiting Amplify's website, www.amplifyenergy.com, and clicking on
the webcast link or by dialing (833) 883-4379 at least 15 minutes
before the call begins and providing the Conference ID:
7860565. The webcast and a telephonic replay will be
available for fourteen days following the call and may be accessed
by visiting Amplify’s website, www.amplifyenergy.com, or by dialing
(855) 859-2056 and providing the Conference ID: 7860565.
About Amplify Energy
Amplify Energy Corp. is an independent oil and
natural gas company engaged in the acquisition, development,
exploration and production of oil and natural gas properties. The
Company’s operations are focused in the Rockies, offshore
California, East Texas / North Louisiana and South Texas. For
more information, visit www.amplifyenergy.com.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Amplify expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Terminology such as “will,” “would,” “should,”
“could,” “expect,” “anticipate,” “plan,” “project,” “intend,”
“estimate,” “believe,” “target,” “continue,” “potential,” the
negative of such terms or other comparable terminology are intended
to identify forward-looking statements. Amplify believes that these
statements are based on reasonable assumptions, but such
assumptions may prove to be inaccurate. Such statements are
also subject to a number of risks and uncertainties, most of which
are difficult to predict and many of which are beyond the control
of Amplify, which may cause Amplify’s actual results to differ
materially from those implied or expressed by the forward-looking
statements. Please read the Company’s filings with the
Securities and Exchange Commission, including “Risk Factors” in its
Annual Report on Form 10-K, and if applicable, its Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, and other
public filings and press releases for a discussion of risks and
uncertainties that could cause actual results to differ from those
in such forward-looking statements. All forward-looking
statements speak only as of the date of this press release.
All forward-looking statements in this press release are
qualified in their entirety by these cautionary statements.
Amplify undertakes no obligation and does not intend to
update or revise any forward-looking statements, whether as a
result of new information, future results or otherwise.
Use of Non-GAAP Financial
Measures
This press release and accompanying schedules
include the non-GAAP financial measures of Adjusted EBITDA and Free
Cash Flow. The accompanying schedules provide a
reconciliation of these non-GAAP financial measures to their most
directly comparable financial measure calculated and presented in
accordance with GAAP. Amplify’s non-GAAP financial measures
should not be considered as alternatives to GAAP measures such as
net income, operating income, net cash flows provided by operating
activities or any other measure of financial performance calculated
and presented in accordance with GAAP. Amplify’s non-GAAP financial
measures may not be comparable to similarly titled measures of
other companies because they may not calculate such measures in the
same manner as Amplify does.Adjusted EBITDA.
Amplify defines Adjusted EBITDA as net income or loss, plus
interest expense; income tax expense; depreciation, depletion and
amortization; impairment of goodwill and long-lived assets;
accretion of asset retirement obligations; losses on commodity
derivative instruments; cash settlements received on expired
commodity derivative instruments; losses on sale of assets;
unit-based compensation expenses; exploration costs; acquisition
and divestiture related expenses; amortization of gain associated
with terminated commodity derivatives, bad debt expense; and other
non-routine items, less interest income; gain on extinguishment of
debt; income tax benefit; gains on commodity derivative
instruments; cash settlements paid on expired commodity derivative
instruments; gains on sale of assets and other, net; and other
non-routine items. Adjusted EBITDA is commonly used as a
supplemental financial measure by management and external users of
Amplify’s financial statements, such as investors, research
analysts and rating agencies, to assess: (1) its operating
performance as compared to other companies in Amplify’s industry
without regard to financing methods, capital structures or
historical cost basis; (2) the ability of its assets to generate
cash sufficient to pay interest and support Amplify’s indebtedness;
and (3) the viability of projects and the overall rates of return
on alternative investment opportunities. Since Adjusted
EBITDA excludes some, but not all, items that affect net income or
loss and because these measures may vary among other companies, the
Adjusted EBITDA data presented in this press release may not be
comparable to similarly titled measures of other companies.
The GAAP measure most directly comparable to Adjusted EBITDA
is net cash provided by operating activities.Free Cash
Flow. Amplify defines Free Cash Flow as Adjusted
EBITDA, less cash income taxes; cash interest expense; and total
capital expenditures. Free cash flow is an important non-GAAP
financial measure for Amplify’s investors since it serves as an
indicator of the Company’s success in providing a cash return on
investment. The GAAP measure most directly comparable to
distributable cash flow is net cash provided by operating
activities. Selected Operating and Financial Data
(Tables)
|
|
|
|
|
|
|
|
Amplify
Energy Corp. |
|
|
|
|
Selected Financial
Data - Unaudited |
|
|
|
|
Statements of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
Ended |
|
Ended |
|
(Amounts in $000s,
except per share data) |
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
Oil and natural gas sales |
$ |
65,067 |
|
|
$ |
75,653 |
|
|
|
Other
revenues |
|
88 |
|
|
|
49 |
|
|
|
Total revenues |
|
65,155 |
|
|
|
75,702 |
|
|
|
|
|
|
|
|
|
Costs and
Expenses: |
|
|
|
|
|
Lease operating
expense |
|
28,910 |
|
|
|
29,830 |
|
|
|
Gathering,
processing and transportation |
|
4,657 |
|
|
|
5,459 |
|
|
|
Exploration |
|
15 |
|
|
|
14 |
|
|
|
Taxes other than
income |
|
4,409 |
|
|
|
5,075 |
|
|
|
Depreciation,
depletion and amortization |
|
11,166 |
|
|
|
12,402 |
|
|
|
General and
administrative expense |
|
9,308 |
|
|
|
7,390 |
|
|
|
Accretion of asset
retirement obligations |
|
1,311 |
|
|
|
1,292 |
|
|
|
Realized (gain)
loss on commodity derivatives |
|
1,277 |
|
|
|
(3,800 |
) |
|
|
Unrealized (gain)
loss on commodity derivatives |
|
31,210 |
|
|
|
(71,573 |
) |
|
|
(Gain) loss on
sale of properties |
|
- |
|
|
|
2,175 |
|
|
|
Other, net |
|
143 |
|
|
|
424 |
|
|
|
Total costs and expenses |
|
92,406 |
|
|
|
(11,312 |
) |
|
|
|
|
|
|
|
|
Operating Income
(loss) |
|
(27,251 |
) |
|
|
87,014 |
|
|
|
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
|
Interest expense,
net |
|
(4,089 |
) |
|
|
(4,528 |
) |
|
|
Other income
(expense) |
|
- |
|
|
|
190 |
|
|
|
Gain on early
extinguishment of debt |
|
- |
|
|
|
(3,034 |
) |
|
|
Total Other Income
(Expense) |
|
(4,089 |
) |
|
|
(7,372 |
) |
|
|
|
|
|
|
|
|
|
Income (loss)
before reorganization items, net and income taxes |
|
(31,340 |
) |
|
|
79,642 |
|
|
|
|
|
|
|
|
|
Reorganization
items, net |
|
(187 |
) |
|
|
(395 |
) |
|
Income tax benefit
(expense) |
|
50 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
(31,477 |
) |
|
$ |
79,247 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
Basic and diluted
earnings (loss) per share |
$ |
(1.42 |
) |
|
$ |
3.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
|
|
|
Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
Three Months |
|
|
|
|
|
|
|
Ended |
|
|
Ended |
|
|
|
(Amounts in $000s,
except per share data) |
|
March 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
natural gas revenue: |
|
|
|
|
|
|
|
|
|
Oil Sales |
|
$ |
40,057 |
|
|
$ |
43,224 |
|
|
|
|
NGL Sales |
|
|
5,865 |
|
|
|
8,453 |
|
|
|
|
Natural Gas
Sales |
|
|
19,145 |
|
|
|
23,976 |
|
|
|
|
Total oil and natural gas sales - Unhedged |
|
$ |
65,067 |
|
|
$ |
75,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
volumes: |
|
|
|
|
|
|
|
|
|
Oil Sales -
MBbls |
|
|
752 |
|
|
|
757 |
|
|
|
|
NGL Sales -
MBbls |
|
|
265 |
|
|
|
330 |
|
|
|
|
Natural Gas Sales
- MMcf |
|
|
5,490 |
|
|
|
6,601 |
|
|
|
|
Total - MBoe |
|
|
1,932 |
|
|
|
2,187 |
|
|
|
|
Total - MBoe/d |
|
|
21.5 |
|
|
|
23.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
sales price (excluding commodity derivatives): |
|
|
|
|
|
|
|
|
Oil - per Bbl |
|
$ |
53.28 |
|
|
$ |
57.18 |
|
|
|
|
NGL - per Bbl |
|
$ |
22.09 |
|
|
$ |
25.66 |
|
|
|
|
Natural gas - per
Mcf |
|
$ |
3.49 |
|
|
$ |
3.63 |
|
|
|
|
Total - per Boe |
|
$ |
33.67 |
|
|
$ |
34.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
unit costs per Boe: |
|
|
|
|
|
|
|
|
|
Lease operating
expense |
|
$ |
14.96 |
|
|
$ |
13.64 |
|
|
|
|
Gathering,
processing and transportation |
|
$ |
2.41 |
|
|
$ |
2.50 |
|
|
|
|
Taxes other than
income |
|
$ |
2.28 |
|
|
$ |
2.32 |
|
|
|
|
General and
administrative expense |
|
$ |
4.82 |
|
|
$ |
3.38 |
|
|
|
|
Depletion,
depreciation, and amortization |
|
$ |
5.78 |
|
|
$ |
5.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
|
|
Balance
Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in $000s,
except per share data) |
|
March 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets |
|
$ |
60,301 |
|
|
$ |
105,597 |
|
|
Property and
equipment, net |
|
|
630,125 |
|
|
|
628,181 |
|
|
Total assets |
|
|
796,183 |
|
|
|
836,843 |
|
|
Total current
liabilities |
|
|
59,023 |
|
|
|
50,418 |
|
|
Long-term
debt |
|
|
270,000 |
|
|
|
294,000 |
|
|
Total
liabilities |
|
|
410,686 |
|
|
|
420,285 |
|
|
Total equity |
|
|
385,497 |
|
|
|
416,558 |
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Data - Unaudited |
|
|
|
|
|
|
Statements of Cash Flows Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
|
Ended |
|
Ended |
|
|
(Amounts in $000s,
except per share data) |
|
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided from operating activities |
|
$ |
10,800 |
|
|
$ |
25,171 |
|
|
|
Net cash provided
by (used in) investing activities |
|
|
(10,500 |
) |
|
|
51,657 |
|
|
|
Net cash provided
by (used in) financing activities |
|
|
(25,128 |
) |
|
|
(38,986 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
|
Ended |
|
Ended |
|
|
(Amounts in $000s,
except per share data) |
|
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided from
Operating Activities: |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
10,800 |
|
|
$ |
25,171 |
|
|
|
|
Changes in working
capital |
|
|
3,006 |
|
|
|
2,898 |
|
|
|
|
Interest expense,
net |
|
|
4,089 |
|
|
|
4,528 |
|
|
|
|
Gain (loss) on
interest rate swaps |
|
|
94 |
|
|
|
- |
|
|
|
|
Amortization of
deferred financing fees |
|
|
(308 |
) |
|
|
(269 |
) |
|
|
|
Reorganization
items, net |
|
|
187 |
|
|
|
395 |
|
|
|
|
Exploration
costs |
|
|
15 |
|
|
|
15 |
|
|
|
|
Acquisition and
divestiture related costs |
|
|
364 |
|
|
|
(764 |
) |
|
|
|
Severance
payments |
|
|
39 |
|
|
|
34 |
|
|
|
|
Plugging and
abandonment cost |
|
|
305 |
|
|
|
591 |
|
|
|
|
Current income tax
expense (benefit) |
|
|
(50 |
) |
|
|
- |
|
|
|
|
Other |
|
|
493 |
|
|
|
(176 |
) |
|
|
Adjusted
EBITDA: |
|
$ |
19,034 |
|
|
$ |
32,423 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Cash Provided from
Operating Activities: |
|
|
|
|
Adjusted
EBITDA: |
|
$ |
19,034 |
|
|
$ |
32,423 |
|
|
|
|
Less: Cash
interest expense |
|
|
4,050 |
|
|
|
4,438 |
|
|
|
|
Less Capital
expenditures |
|
|
13,096 |
|
|
|
10,222 |
|
|
|
Free Cash
Flow: |
|
$ |
1,888 |
|
|
$ |
17,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
Operating and Financial Data (Tables) |
|
|
|
|
|
|
Reconciliation of
Unaudited GAAP Financial Measures to Non-GAAP Financial
Measures |
|
|
|
|
Adjusted EBITDA and Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Three Months |
|
|
|
|
|
|
Ended |
|
Ended |
|
|
(Amounts in $000s,
except per share data) |
|
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Income
(Loss): |
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(31,477 |
) |
|
$ |
79,247 |
|
|
|
|
Interest expense,
net |
|
|
4,089 |
|
|
|
4,528 |
|
|
|
|
Gain (loss) on
early extinguishment of debt |
|
|
- |
|
|
|
3,034 |
|
|
|
|
Income tax
expense |
|
|
(50 |
) |
|
|
- |
|
|
|
|
Depreciation,
depletion and amortization |
|
|
11,166 |
|
|
|
12,402 |
|
|
|
|
Accretion of asset
retirement obligations |
|
|
1,311 |
|
|
|
1,292 |
|
|
|
|
(Gains) losses on
commodity derivatives |
|
|
32,487 |
|
|
|
(75,373 |
) |
|
|
|
Cash settlements
on expired commodity derivatives |
|
(1,277 |
) |
|
|
3,800 |
|
|
|
|
Acquisition and
divestiture related costs |
|
|
364 |
|
|
|
(764 |
) |
|
|
|
Reorganization
items, net |
|
|
187 |
|
|
|
395 |
|
|
|
|
Share-based
compensation expense |
|
|
1,936 |
|
|
|
1,108 |
|
|
|
|
(Gain) loss on
sale of properties |
|
|
- |
|
|
|
2,175 |
|
|
|
|
Exploration
costs |
|
|
15 |
|
|
|
15 |
|
|
|
|
Loss on settlement
of AROs |
|
|
143 |
|
|
|
424 |
|
|
|
|
Bad debt
expense |
|
|
101 |
|
|
|
106 |
|
|
|
|
Severance
payments |
|
|
39 |
|
|
|
34 |
|
|
|
|
Adjusted
EBITDA: |
|
$ |
19,034 |
|
|
$ |
32,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow to Net Income
(Loss): |
|
|
|
|
|
|
Adjusted
EBITDA: |
|
$ |
19,034 |
|
|
$ |
32,423 |
|
|
|
|
|
Less: Cash interest expense |
|
|
4,050 |
|
|
|
4,438 |
|
|
|
|
|
Less Capital expenditures |
|
|
13,096 |
|
|
|
10,222 |
|
|
|
|
Free Cash
Flow: |
|
$ |
1,888 |
|
|
$ |
17,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid-Point |
Mid-Point |
|
|
For Quarter Ended |
For Year Ended |
|
(in
millions) |
6/30/2019 |
12/31/2019 |
|
|
|
|
|
Calculation of
Adjusted EBITDA: |
|
|
|
Net income |
$5 |
$32 |
|
Interest expense |
4 |
16 |
|
Depletion, depreciation, and
amortization |
12 |
48 |
|
Adjusted EBITDA |
$21 |
$96 |
|
|
|
|
|
Reconciliation of Net
Cash Provided by Operating Activities to Adjusted
EBITDA: |
|
|
|
Net cash provided by operating
activities |
$17 |
$80 |
|
Changes in working
capital |
– |
– |
|
Cash Interest Expense |
4 |
16 |
|
Adjusted EBITDA |
$21 |
$96 |
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Free Cash Flow: |
|
|
|
Adjusted EBITDA |
$21 |
$96 |
|
Cash Interest Expense |
(4) |
(16) |
|
Capital expenditures |
(23) |
(63) |
|
Free Cash Flow |
($6) |
$18 |
|
|
|
|
ContactsAmplify Energy Corp.Martyn Willsher –
Chief Financial Officer(713)
588-8346martyn.willsher@amplifyenergy.com
Midstates Petroleum (NYSE:MPO)
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Midstates Petroleum (NYSE:MPO)
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From Apr 2023 to Apr 2024