Amplitude Energy's (ASX:AEL) fiscal first-half results are "very strong," and the finalization of its negotiations with OG Energy, coupled with details about its East Coast Supply Project (ECSP) costs, timing, and funding, should serve as a major catalyst to the company's share price, giving the company the potential to beat market capital expenditure estimates, Euroz Hartleys said in a note Tuesday.

The company reported that revenue for the six months ended Dec. 31, 2024, rose 26% to AU$133.7 million, driven by higher production and a 15% rise in average realized gas pricing.

Earnings before interest, taxes, depreciation, amortization, and exploration costs grew 53% to $93.2 million, beating Euroz Hartleys' estimate due to lower production costs.

AEL also said it is negotiating with OG Energy, which is working on finalizing terms for the purchase of Mitsui's 50% stake in the Otway Basin assets. This includes the ECSP, in which AEL holds a 50% interest.

Euroz Hartleys believes that OG Energy is an excellent partner for the project due to its large balance sheet and willingness to be a non-operator.

The firm maintained AEL's buy rating and increased the price target to AU$0.36 from AU$0.35.

Amplitude Energy's shares rose almost 6% in recent Wednesday trade.