Amplify Energy Corp. · NYSE:AMPY
Amplify Energy — Investor Presentation (November 2022)
28 slides from Amplify Energy's investor presentation, Nov 1, 2022
Slide 1: Amplify Energy Corp. November 2022 Investor Presentation
NYSE: AMPY Amplify Energy Corp. November 2022 Investor Presentation November 1, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 fact, included in th
Slide 3: Non-GAAP Disclosure
Non-GAAP Disclosure Use of Non-GAAP Financial Measures. Amplify uses the non-GAAP financial measures of Adjusted EBITDA, free cash flow, net debt, and PV-10. Amplify’s non- GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cas
Slide 4: Update on the Southern California Release
Update on the Southern California Release Operations Update ▪ Operations are currently underway to repair and replace the sections of our pipeline that were damaged in 2021 ▪ Once repair work is complete, Amplify will work to satisfy the PHMSA Corrective Action Order requirements to put the pipeline
Slide 5: Key Highlights
Key Highlights ▪ Delivered ~$31 MM of Adjusted EBITDA in 3Q22 and ~$72 MM YTD in 2022 Focused ▪ Full-year 2022 production and Adjusted EBITDA guidance of 20.0 – 21.0 Mboepd and $90 – $100 MM, Operational respectively Excellence1 ▪ Took gas in kind in 1Q22 in Oklahoma, expected to increase gas revenu
Slide 6: Robust, Low-Decline, Cash Generating Assets
Robust, Low-Decline, Cash Generating Assets Asset Overview Asset Locator Map ▪ Diversified Production: 50/50 liquids and gas mix (~30% oil) from 5 producing basins in different areas of the U.S. mitigates regional pricing and operational disruptions1 2 ▪ Sustainable Free Cash Flow: Strong cash margi
Slide 7: Amplify Corporate ESG Profile
Amplify Corporate ESG Profile ▪ Dramatically reducing GHG emissions by optimizing asset infrastructure Environmental ▪ No routine methane flaring Focus ▪ Mobilized over 1,800 spill response contractors to safely and expeditiously remediate the Southern California Release ▪ Comprehensive employee hea
Slide 8: Illustrative FCF and Net Debt Profile
Illustrative FCF and Net Debt Profile 2022 – 2024 Cumulative FCF and Net Debt Sensitivity1,2,3,4,5 Net Debt Strip - Beta Online 03/31/23 Cum. FCF at Strip - Beta Online 03/31/23 Cum. FCF at Strip +10% - Beta Online 03/31/23 $350 $350 $300 $300 $300 Cum. Free Cash Flow ($ MM) $250 $235 $250 Net Debt
Slide 9: Current Trading Levels Offer Attractive Entry Point
Current Trading Levels Offer Attractive Entry Point Key Points 1P Reserves Summary1 ▪ 1P reserve value at NYMEX strip pricing is substantially Net Total % PD PV-10 & PUD PV-201,6 (WTI / HH) Category greater than Amplify's current enterprise value NYMEX² + (MMBoe)2 Liquids2 $65 / $3.50 NYMEX² 10% ▪ P
Slide 10: Amplify Value Proposition
Amplify Value Proposition ▪ Sustainable free cash flow through efficiently ▪ Capital allocation focused on debt operating low-decline, high margin assets1 reduction, prudent asset reinvestment and enhancing shareholder value ▪ Mature, diverse asset ▪ Opportunistically base yields a predictable, moni
Slide 11: Low-Decline, Mature Producing Properties
Low-Decline, Mature Producing Properties Key Points Net YE 2021 SEC PDP Production Forecast (MBoe/d)2 ▪ Amplify's PD reserves base is expected to generate 25 substantial free cash flow over the next ten years and 20 beyond1,2 15 ▪ Long-life PDP reserves with ~8% compound annual 10 decline rate throu
Slide 12: Maintaining Financial Discipline Through Cycles
Maintaining Financial Discipline Through Cycles Key Points Free Cash Flow Over Time ($ MM)1,2,3 ▪ Our diversified, low-decline, Revenue Controllable Costs Non-Controllable Costs Capex Hedging Impact FCF PDP-heavy portfolio, paired with a commitment to operational efficiency and $126 $111 $122 the lo
Slide 13: Capital Allocation Strategy
Capital Allocation Strategy Balance Sheet Improvement ▪ Capitalize on operational efficiencies to enhance margins and maximize operating cash flows ▪ Rapid deleveraging of balance sheet provides future optionality to allocate additional capital towards asset reinvestment, accretive transactions and
Slide 14: Investment Highlights
Investment Highlights Implied year-end 2021 PD equity value represents a ~100% premium to current share price 1,2 Diversified Portfolio of Producing Properties Requiring Minimal Capital Sustainable Free Cash Flow Profile Built on Mature, Low-Decline Assets4 Forecasted to Generate ~$235 Million in Fr
Slide 15: Appendix
Zz amplify” energy Appendix NYSE: AMPY
Slide 16: 2022 Updated Guidance and Details
2022 Updated Guidance and Details FY 2022E4,5 Low High Net Average Daily Production (Excludes Beta Production)4 Oil (MBbls/d) 6.2 - 6.5 NGL (MBbls/d) 3.6 - 4.0 Natural Gas (MMcf/d) 61.0 - 63.5 Total (MBoe/d) 20.0 - 21.0 Commodity Price Differential / Realizations (Unhedged) Oil Differential ($ / Bbl
Slide 17: Solidified FCF Generation with Pricing Upside
Solidified FCF Generation with Pricing Upside Key Points Oil Hedge Position1,2,3 ▪ Recently took advantage of the volatility present in the gas 85 - 95% market to improve the floor and ceilings on our collar positions in 2023 and will look to 50 - 60% layer additional positions as opportunities aris
Slide 18: Crude Hedge Detail
Crude Hedge Detail Bal22-2023 Crude Hedge Breakdown Period Bal20221 FY2023 Strip Pricing as of 10/28/2022 $86.92 $79.73 Swap Total Volumes (MBbl) 171 660 Daily Volumes (Bbl/d) 1,859 1,808 W. Avg. Fixed Price ($/Bbl) $48.27 $57.30 Traditional Collar Total Volumes (MBbl) 45 – Daily Volumes (Bbl/d) 489
Slide 19: Natural Gas Hedge Detail
Natural Gas Hedge Detail Bal22-2023 Natural Gas Hedge Breakdown Period Bal20221 FY2023 Strip Pricing as of 10/28/2022 $5.87 $5.02 Swap Total Volumes (MMcf) 2,085 – Daily Volumes (Mcf/d) 22,663 – W. Avg. Fixed Price ($/MMBtu) $2.56 – Traditional Collar Total Volumes (MMcf) 2,325 13,920 Daily Volumes
Slide 20: Oklahoma Overview
Oklahoma Overview 3Q22 Production YE 2021 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Oklahoma Key Stats ▪ Net Acres: ~95,000 acres1 ‒ WI %: ~76%1 ▪ Net Production: 6.8 MBoe/d2 ▪ Liquids Mix: 48%2 ▪ PD Reserves: 35.0 MMBoe3,4 ▪ PD R/P: ~14 years3,5 Key Highlights ▪ Rod lift conversion program
Slide 21: Rockies (Bairoil) Overview
Rockies (Bairoil) Overview 3Q22 Production YE 2021 PD Reserves (MBoe/d) (MMBoe) Amplify Leasehold Fremont Carbon Other Amplify Assets Rockies Sweetwater Key Stats ▪ Net Acres: ~7,000 acres1 ‒ WI %: 100%1 ▪ Net Production: 3.6 MBoe/d2 ▪ Oil Mix: 100%2 ▪ PD Reserves: 26.6 MMBoe3,4 ▪ PD R/P: ~20 years3
Slide 22: Southern California (Beta) Overview
Southern California (Beta) Overview Federal Waters 3Q21 Production YE 2021 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Southern California Key Stats ▪ Net Acres: ~17,000 acres1 ‒ WI %: 100%1 ▪ Net Production: 3.7 MBoe/d2 ▪ Oil Mix: 100%2 ▪ PD Reserves: 12.0 MMBoe3,4 ▪ PD R/P: ~9 years3,5 ▪ P&A
Slide 23: East Texas / North Louisiana Overview
East Texas / North Louisiana Overview 3Q22 Production YE 2021 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets ETX / NLA Key Stats ▪ Net Acres: ~195,000 acres1 ‒ WI %: ~56%1 ▪ Net Production: 9.2 MBoe/d2 ▪ Liquids Mix: 25%2 ▪ PD Reserves: 44.1 MMBoe3,4 ▪ PD R/P: ~13 years3,5 Key Highlights ▪ ~1,400
Slide 24: Eagle Ford Overview
Eagle Ford Overview 3Q22 Production YE 2021 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Eagle Ford DeWitt Key Stats ▪ Net Acres: ~800 acres1 Karnes ‒ WI %: ~8%1 ▪ Net Production: 1.4 MBoe/d2 ▪ Liquids Mix: 90%2 ▪ PD Reserves: 1.7 MMBoe3,4 ▪ PD R/P: ~3 years3,5 Key Highlights ▪ 100% non-operate
Slide 25: Reconciliation of PV-10 to Standardized Measure
Reconciliation of PV-10 to Standardized Measure Amplify refers to Standardized Measure as the present value of estimated future net revenue to be generated from the production of proved reserves, determined in accordance with the rules, regulations or standards established by the SEC and the Financi
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Nine Months Twelve Months Twelve Months Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended Ended Ended Ended September 30, 2022 December 31, 2021 December 31, 2020 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 S
Slide 27: Non-GAAP Reconciliations (Cont'd)
Non-GAAP Reconciliations (Cont’d) Nine Months Twelve Months Twelve Months Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended Ended Ended Ended September 30, 2022 December 31, 2021 December 31, 2020 September 30, 2022 June 30, 2022 March 31, 2022 December 3
Slide 28: NYSE: AMPY
amplify energy NYSE: AMPY
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