• Revenue: $133.7 million, a 26% increase from the prior comparable period.
• Production: 21% increase, tracking ahead of guidance at 65 to 72 terajoules equivalent per day.
• Production Expenses: $29 million, with unit costs at $2.14 per gigajoule.
• Underlying EBITDAX: $93.2 million, up 53% from the first half of FY24.
• Net Profit After Tax: $8.5 million, compared to $5.4 million in the first half of FY24.
• Cash Flow from Operations: $81.5 million, excluding non-recurring items.
• CapEx: $23.9 million, primarily related to the East Coast supply project.
• Average Realized Gas Price: $9.69 per gigajoule, recently around $10 per gigajoule.
• Net Debt: $254 million at the end of the half.
• Liquidity: Over $240 million in aggregate, including cash balance and unutilized working capital facility.

• Warning! GuruFocus has detected 5 Warning Signs with COPJF.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amplitude Energy Ltd (COPJF) achieved a 21% increase in production, setting a new record for the company.
• The company reported a 26% increase in sales revenue, reaching $133.7 million, driven by higher production and gas prices.
• Amplitude Energy Ltd (COPJF) successfully completed the decommissioning of seven BMG wells, one of the largest restoration projects in recent Australian history.
• The company maintained exemplary safety and environmental performance, with no recordable injuries or environmental incidents in FY25.
• Amplitude Energy Ltd (COPJF) has a strong market position as the only pure play gas company in the increasingly tight Southeast Australian gas market.

Negative Points

• The company faces challenges with the Orbost plant, including ongoing engineering solutions to improve sulfur removal and reliability.
• There are uncertainties surrounding the completion of negotiations with OG Energy for joint venture partnerships.
• Amplitude Energy Ltd (COPJF) has incurred significant restoration payments, with $32.9 million related to the BMG wells decommissioning program.
• The company is exposed to potential risks from fluctuating spot gas prices, which could impact financial performance.
• There are ongoing discussions and uncertainties regarding the Minerva abandonment project and its associated costs.

Q & A Highlights

Q: Can you provide any updates on the transaction with OG Energy and its timing? A: Jane Norman, Managing Director and CEO: We are limited in what we can say, but we are pleased with the progress and focused on finalizing negotiations and entering binding agreements soon.

Q: With OG Energy potentially replacing Mitsui, are there opportunities for collaboration with Beach Energy in the Otway Basin? A: Jane Norman, Managing Director and CEO: We are open to opportunities that deliver synergies and reduce costs, so collaboration is certainly a possibility.

Q: How are you tracking against the $12 million cash flow improvement target for FY25? A: Daniel Young, CFO: We haven't provided a half-yearly split, but the continuous improvement program is adding momentum, and we are comfortably on track to achieve the full-year target.

Q: Can you provide details on the back costs incurred in the current negotiations? A: Jane Norman, Managing Director and CEO: The back costs relate to time writing, expenditure on assets, and long lead items. More details will be provided once binding agreements are finalized.

Q: How do banks view your increasing exposure to spot gas prices in terms of lending capacity? A: Daniel Young, CFO: Our loan provisions consider the balance between contracted and non-contracted volumes. We aim to maintain flexibility and seize opportunities for attractive pricing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.