Amplify Energy Corp. · NYSE:AMPY
Amplify Energy — Investor Presentation (August 2021)
32 slides from Amplify Energy's investor presentation, Aug 4, 2021
Slide 1: Amplify Energy Corp. August 2021 Investor Presentation
NYSE: AMPY Amplify Energy Corp. August 2021 Investor Presentation August 4, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and the oral statements made in connection therewith contain forward-looking statements. All statements, other than statements of historical facts, included in this presentation or made in connection therewith that address activities, events or developmen
Slide 3: Non-GAAP Disclosure
Non-GAAP Disclosure Use of Non-GAAP Financial Measures. Amplify uses the non-GAAP financial measures of Adjusted EBITDA and free cash flow. 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
Slide 4: Key Highlights
Key Highlights ▪ Increased full-year 2021 production guidance midpoint to 24.5 MBoepd from 24.0 MBoepd Continued – 2Q21 production of 25.3 MBoepd Operational Excellence1, 2 ▪ Achieved unhedged operating margin of $18.07/Boe in 2Q21, a ~17% increase quarter-over-quarter – 2Q21 LOE of $12.46/Boe ($28.
Slide 5: Robust, Low-Decline Cash Generating Assets
Robust, Low-Decline Cash Generating Assets Asset Overview Asset Locator Map ▪ Diversified Production: Nearly 60/40 liquids and gas production mix (~40% oil) from 5 producing basins in different areas of the U.S. mitigates regional pricing and operational disruptions 2 ▪ Sustainable Free Cash Flow: I
Slide 6: Amplify Corporate ESG Profile
Amplify Corporate ESG Profile ▪ Upgraded infrastructure to detect spills and other failures earlier Environmental ▪ Developed in-house software and workflows to streamline asset Focus monitoring and minimize environmental impact ▪ ~50% reduction in 2020 reportable spills ▪ Prioritize employee health
Slide 7: Illustrative Free Cash Flow Profile
Illustrative Free Cash Flow Profile 2021 – 2023 Cumulative Free Cash Flow Sensitivity1, 2, 3, 4 Adj. EBITDA at Strip Cum. FCF at Strip Cum. FCF at $55/$3.00 Cum. FCF at $65/$3.25 $250 $50 $213 $204 $200 $40 Cumulative Free Cash Flow ($MM) $154 Adjusted EBITDA ($MM) $150 $30 $100 $20 $50 $10 – - 1Q 2
Slide 8: Current Trading Levels Offer Attractive Entry Point
Current Trading Levels Offer Attractive Entry Point Key Points 1P Reserves Summary ▪ 1P reserve value at NYMEX strip pricing is substantially Net Total % PD PV-10 & PUD PV-20¹ (WTI / HH) Category greater than Amplify's current enterprise value (MMBoe)2 Liquids2 $55 / $3.00 NYMEX² $65 / $3.25 ▪ Premi
Slide 9: Amplify Value Proposition
Amplify Value Proposition ▪ Sustainable free cash flow through efficiently ▪ Capital allocation focused on debt operating low-decline, high margin assets reduction, enhancing shareholder value and prudent asset reinvestment ▪ Mature, diverse asset base yields a predictable, ▪ Opportunistically low-d
Slide 10: Top-Tier Free Cash Flow Generation
1 Top-Tier Free Cash Flow Generation Key Points LTM Free Cash Flow Yield Peer Group Comparison1 ▪ Our diversified, low- 75% decline, PDP-heavy portfolio, paired with a 60% commitment to 45% operational excellence and the low-capital nature 30% Peer Average: 25% of our assets, ensures sustainable, lo
Slide 11: Capital Allocation Strategy
1 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 an
Slide 12: Low-Decline, Mature Producing Properties
2 Low-Decline, Mature Producing Properties Key Points Net PDP Production Forecast ▪ Amplify's PD reserves base is expected to generate 25 22.8 substantial free cash flow 20.7 over the next ten years and 18.9 Production (MBoe/d) 20 beyond 17.4 16.2 15.1 15 14.1 13.1 ▪ Long-life PDP reserves with 12.3
Slide 13: Efficient Corporate Platform
3 Efficient Corporate Platform Increasing Cash G&A Efficiency Over Time G&A Unit G&A $12.5 $5.00 Unit Cash G&A Expense ($/Boe) Cash G&A Expense ($MM) $10.0 $4.00 2019 Avg: $2.84/Boe $7.5 2020 Avg: $2.57/Boe $3.00 $5.0 $2.00 $2.5 $1.00 – – 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 19 19 19 19 20 20 20 20 21 21 P
Slide 14: Enhancing Company Margins
3 Enhancing Company Margins Key Points First Half 2021 Company Metrics Comparison ▪ Achieved unhedged operating margin of $18.07/Boe in 2Q21, Product Breakdown a ~17% increase quarter-over- quarter Oil Oil Oil Gas 36% Gas 38% Gas 40% 44% 1Q20 47% FY20 45% 1H21 ▪ Increasingly oil-weighted nature of d
Slide 15: Rapid Deleveraging Using Organic Cash Flows
4 Rapid Deleveraging Using Organic Cash Flows 2021 – 2023 Cumulative Free Cash Flow Sensitivity1, 2, 3, 4 Leverage Cum. FCF at Strip Cum. FCF at $55/$3.00 Cum. FCF at $65/$3.25 $250 3.0x $213 $204 2.5x $200 Cumulative Free Cash Flow ($MM) 2.0x $154 $150 Leverage Ratio 1.5x $100 1.0x $50 0.5x – - 1Q
Slide 16: Solidified FCF Generation with Pricing Upside
4 Solidified FCF Generation with Pricing Upside Key Points Oil Hedge Position1,2,3 ▪ Amplify has taken advantage 85 - 90% 80 - 85% of the recent run-up in crude and natural gas pricing to layer on additional hedges in 2022 30 - 35% and 2023 that have materially raised its fixed/floor and ceiling pri
Slide 17: Expanding Reserves & Long-Term Profitability
5 Expanding Reserves & Long-Term Profitability Beta Development Update Formation Structure Map Type Log ▪ Beta phased development improves 2022+ FCF D Sand Formation generation, de-risks future development opportunities and substantially increases reserve value ▪ Significant original oil in place: ~
Slide 18: Investment Highlights
Investment Highlights Diversified Portfolio of Producing Properties Requiring Minimal Capital Established a Peer-Leading Free Cash Flow Profile Built on Mature, Low-Decline Assets Beta Field Development Enhances Profitability and Proves Up Additional Reserves Forecasted to Generate Over $200 MM in F
Slide 19: Appendix
Zz amplify” energy Appendix NYSE: AMPY
Slide 20: 2021 Guidance and Details
2021 Guidance and Details FY 2021E Low High Net Average Daily Production Oil (MBbls/d) 9.9 - 10.2 NGL (MBbls/d) 3.6 - 4.0 Natural Gas (MMcf/d) 63.0 - 65.0 Total (MBoe/d) 24.0 - 25.0 Commodity Price Differential / Realizations (Unhedged) Oil Differential ($ / Bbl) ($3.50) - ($3.75) NGL Realized Price
Slide 21: Crude Oil Hedge Position
Crude Oil Hedge Position Bal21-2023 Crude Hedge Breakdown Period Bal20211 FY2022 FY2023 Strip Pricing (As of 7/30/21) $72.19 $66.87 $61.49 Swap Average Monthly Volumes (MBbl) 172.5 99.0 55.0 Wtd. Avg. Fixed Price ($/Bbl) $49.37 $55.68 $57.30 Traditional Collar Average Monthly Volumes (MBbl) – 22.5 –
Slide 22: Natural Gas Hedge Position
Natural Gas Hedge Position Bal21-2023 Natural Gas Hedge Breakdown Period Bal20211 FY2022 FY2023 Strip Pricing (As of 7/30/21) $3.99 $3.46 $2.97 Swap Average Monthly Volumes (MMcf) 970.0 695.0 – Wtd. Avg. Fixed Price ($/Mcf) $2.49 $2.56 – Traditional Collar Average Monthly Volumes (MMcf) 830.0 695.0
Slide 23: NGL Hedge Position
NGL Hedge Position Bal21 NGL Hedge Breakdown Period Bal20211 Strip Pricing (As of 7/30/21)2 $37.88 Swap Average Monthly Volumes (MBbl) 20.3 Wtd. Avg. Fixed Price ($/Bbl) $23.74 Hedges to 2020 SEC Reserve Report Hedged Percent (%) 15 - 20% Bal21 NGL Hedge Breakdown by Product Period Bal20211 MBV C2 A
Slide 24: Oklahoma Overview
Oklahoma Overview 2Q21 Production YE 2020 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Oklahoma Key Stats ▪ Net Acres: ~100,000 acres1 ‒ WI %: ~76%1 ▪ Net Production: 6.6 MBoe/d2 ▪ Liquids Mix: 49%2 ▪ PD Reserves: 36.3 MMBoe3, 4 ▪ PD R/P: ~15 years3, 5 Key Highlights ▪ Rod lift conversion progr
Slide 25: Rockies Overview
Rockies Overview 2Q21 Production YE 2020 PD Reserves (MBoe/d) (MMBoe) Amplify Leasehold Fremont Other Amplify Assets Rockies Carbon Key Stats Sweetwater ▪ Net Acres: ~7,000 acres1 ‒ WI %: 100%1 ▪ Net Production: 3.4 MBoe/d2 ▪ Oil Mix: 100%2 N. Dakota ▪ PD Reserves: 29.8 MMBoe3, 4 Montana ▪ PD R/P: ~
Slide 26: Southern California (Beta) Overview
Southern California (Beta) Overview Federal Waters 2Q21 Production YE 2020 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Southern California Key Stats ▪ Net Acres: ~17,000 acres1 ‒ WI %: 100%1 ▪ Net Production: 3.6 MBoe/d2 ▪ Oil Mix: 100%2 ▪ PD Reserves: 14.9 MMBoe3, 4 ▪ PD R/P: ~11 years3, 5 ▪
Slide 27: East Texas / North Louisiana Overview
East Texas / North Louisiana Overview 2Q21 Production YE 2020 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets ETX / NLA Key Stats ▪ Net Acres: ~210,000 acres1 ‒ WI %: ~56%1 ▪ Net Production: 10.3 MBoe/d2 ▪ Liquids Mix: 25%2 ▪ PD Reserves: 42.1 MMBoe3, 4 ▪ PD R/P: ~11 years3, 5 Key Highlights ▪ ~1,
Slide 28: Eagle Ford Overview
Eagle Ford Overview 2Q21 Production YE 2020 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: 89%2 ▪ PD Reserves: 1.6 MMBoe3, 4 ▪ PD R/P: ~3 years3, 5 Key Highlights ▪ 100% non-opera
Slide 29: 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 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 (Amounts in $000s) Reconciliation of Adjusted EBITDA to Net Income (Loss): Net income (loss) $ (35,0
Slide 31: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 (Amounts in $000s) Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating A
Slide 32: NYSE: AMPY
amplify energy NYSE: AMPY