Amplify Energy Corp. · NYSE:AMPY
Amplify Energy — Investor Presentation (March 2021)
31 slides from Amplify Energy's investor presentation, Mar 11, 2021
Slide 1: Amplify Energy Corp. March 2021 Investor Presentation
Amplify Energy Corp. March 2021 Investor Presentation March 11, 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: 2020 Year in Review and Key Highlights
2020 Year in Review and Key Highlights A New ▪ 2020 was Amplify’s strongest year for generating operating efficiencies and cost reductions Benchmark ▪ Operations team delivered $18 MM in LOE savings from 2Q20 through 4Q20; a majority of the cost for reductions are recurring and expected to carry thr
Slide 4: 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 ▪ Stable Free Cash Flow: Improv
Slide 5: Amplify Corporate ESG Profile
Amplify Corporate ESG Profile ▪ Developed in-house software and workflows to streamline asset monitoring and minimize environmental impact Environmental ▪ Installed infrastructure upgrades to detect spills and other Focus failures earlier ▪ ~50% reduction in 2020 reportable spills ▪ Safety performan
Slide 6: Business Model and Long-Term Strategy
Business Model and Long-Term Strategy Key Points Amplify Business Model Breakdown ▪ Amplify’s diverse portfolio remains focused on low-decline, mature assets with minimal capital requirements Long-Term Steady Cash Value Generation ▪ Long-term strategy involves deploying internally generated cash flo
Slide 7: 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 NYMEX² $55 / $3.00 $60 / $3.15 ▪ Premi
Slide 8: Amplify Value Proposition
Amplify Value Proposition ▪ Sustain free cash flow through efficiently ▪ Capital allocation focused on debt operating low-decline, high margin assets reduction, boosting shareholder value, and prudent asset reinvestment ▪ Large, shallow-decline ▪ Anticipate robust 2021 asset portfolio A&D and M&A ma
Slide 9: Top-Tier Free Cash Flow Generation
1 Top-Tier Free Cash Flow Generation Free Cash Flow Over Time1, 2, 3 Revenue Hedging Uplift Controllable Costs Non-Controllable Costs Capex FCF $100 $85 $80 $80 $71 $67 $65 $62 Free Cash Flow ($ MM) $60 $40 $20 $16 $16 $11 $11 - $3 ($2) ($20) ($40) ($60) ($80) ($100) 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 An
Slide 10: 2021 Capital Allocation Strategy
1 2021 Capital Allocation Strategy Balance Sheet Improvement ▪ Continue exploiting operational efficiencies to maximize asset cash flow ▪ 2021 hedging strategy is a shift from securing profitability to boosting liquidity ▪ Enhance shareholder value and attract new institutional investors Asset Reinv
Slide 11: 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 significant free cash flow over 20.7 the next ten years 18.9 Production (MBoe/d) 20 17.4 16.2 15.1 ▪ Long-life PDP reserves with 15 14.1 13.1 ~7% compound an
Slide 12: Continuing Operational Excellence
3 Continuing Operational Excellence Year over Year Change in Lease Operating Expense $10 $8 2020 has been a transformative year for lean operations $6 and cost reductions, setting the benchmark for operational efficiencies in the future Change in LOE ($ MM) $4 $2 - ($2) ($4) ($6) ($8) ($10) 3Q19 4Q1
Slide 13: Efficient Corporate Platform
3 Efficient Corporate Platform Increasing Cash G&A Efficiency Over Time1 G&A Unit G&A $10.0 $4.00 Unit Cash G&A Expense ($/Boe) 2018 Avg: $3.21/Boe 2019 Avg: $2.84/Boe Cash G&A Expense ($ MM) $7.5 $3.00 2020 Avg: $2.57/Boe $5.0 $2.00 $2.5 $1.00 – – 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 18 18 18 18 19
Slide 14: Enhancing Company Margins
4 Enhancing Company Margins Key Points 2020 Quarterly Operating Metrics ▪ Amplify’s product mix is ~11% increase in oil product mix becoming increasingly oil- Product Breakdown weighted, increasing long-term profitability Oil Oil Oil Oil Gas Gas Gas ▪ Transformative LOE reductions 36% 1Q20 Gas 37% 2
Slide 15: Material Liquidity Upside
4 Material Liquidity Upside Historical Commodity Pricing and Borrowing Base Borrowing Base NYMEX WTI $75 $750 Spring 2020 Redetermination Fall 2020 Redetermination $60 $600 Borrowing Base ($ MM) NYMEX WTI ($/Bbl) $45 $450 $30 Fall 2020 redetermination $300 reaffirmed Amplify’s $260 MM borrowing base
Slide 16: Beta Development Approach
5 Beta Development Approach Key Points Formation Structure Map Type Log ▪ Development program ROR comfortably exceeds D Sand Formation Amplify’s stringent hurdle rate and bolsters profitability ▪ Significant original oil in place – 1 billion barrels OOIP; only 11% recovered to date Ellen – Analogous
Slide 17: Investment Highlights
Investment Highlights Establishing a Peer-Leading Free Cash Flow Profile Built on Mature, Low-Decline Assets Diversified Portfolio of Producing Properties Requiring Minimal Capital Continued Operational Excellence Increases Long-Term Cash Margins Beta Field Development Bolsters Future Free Cash Flow
Slide 18: Appendix
Zz amplify” energy Appendix
Slide 19: Hedge Position Protects Stable Cash Flows
Hedge Position Protects Stable Cash Flows Oil Hedge Position (% of Estimated Production)1,2 $46.00 $48.15 85-90% Fixed / Floor Price ($/Bbl) 60-65% 2021 2022 Gas Hedge Position (% of Estimated Production)1,2 $2.29 $2.42 ~100% Fixed / Floor Price ($/MMBtu) 75 - 80% 2021 2022 NGL Hedge Position (% of
Slide 20: 2021 Guidance and Details
2021 Guidance and Details FY 2021E Low High Net Average Daily Production Oil (MBbls/d) 9.5 - 10.5 NGL (MBbls/d) 3.5 - 4.0 Natural Gas (MMcf/d) 60.0 - 63.0 Total (MBoe/d) 23.0 - 25.0 Commodity Price Differential / Realizations (Unhedged) Oil Differential ($ / Bbl) ($3.25) - ($3.75) NGL Realized Price
Slide 21: 2020 Year End Reserves
2020 Year End Reserves Net Gas Volume Net Oil Volume Net NGL Volume Net Total Volume PV-10 at SEC PV-10 at Strip PV-10 at Flat PV-10 at Flat (MMcf) (MBbl) (MBbl) (MBoe) Pricing ($M)1 Pricing ($M)2 $55 / $3.00 $60 / $3.15 Oklahoma 1PDP 79,671 5,602 7,108 25,989 $81,102 $147,359 $173,105 $197,166 2PDN
Slide 22: 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 23: Oklahoma Overview
Oklahoma Overview 4Q20 Production YE 2020 PD Reserves (MBoe/d) (MMBoe) Other Amplify Assets Oklahoma Key Stats ▪ Net Acres: ~100,000 acres1 ‒ WI %: ~76%1 ▪ Net Production: 7.5 MBoe/d2 ▪ Liquids Mix: 49%2 ▪ PD Reserves: 35.5 MMBoe3, 4 ▪ PD R/P: ~13 years3, 5 Key Highlights ▪ Rod lift conversion progr
Slide 24: Rockies Overview
Rockies Overview 4Q20 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: 4.0 MBoe/d2 ▪ Oil Mix: 100%2 N. Dakota ▪ PD Reserves: 26.4 MMBoe3, 4 Montana ▪ PD R/P: ~
Slide 25: Southern California (Beta) Overview
Southern California (Beta) Overview Federal Waters 4Q20 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: 13.9 MMBoe3, 4 ▪ PD R/P: ~11 years3, 5 ▪
Slide 26: East Texas / North Louisiana Overview
East Texas / North Louisiana Overview 4Q20 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: 10.4 MBoe/d2 ▪ Liquids Mix: 27%2 ▪ PD Reserves: 40.8 MMBoe3, 4 ▪ PD R/P: ~11 years3, 5 Key Highlights ▪ ~1,
Slide 27: Eagle Ford Overview
Eagle Ford Overview 4Q20 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: 0.8 MBoe/d2 ▪ Liquids Mix: 93%2 ▪ PD Reserves: 1.5 MMBoe3, 4 ▪ PD R/P: ~5 years3, 5 Key Highlights ▪ 100% non-opera
Slide 28: 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 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 (Amounts in $000s) Reconciliation of Adjusted EBITDA to Net Income (Loss): Net income (loss) $ (
Slide 30: 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 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 (Amounts in $000s) Reconciliation of Adjusted EBITDA to Net Cash Provided from Operati
Slide 31: lify
am lify e nergy \yY ws