Earnings Labs

Amplify Energy Corp. (AMPY)

Q1 2020 Earnings Call· Sat, May 9, 2020

$6.22

+3.58%

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Transcript

Operator

Operator

Welcome to the Amplify Energy's First Quarter 2020 Investor Conference Call. Amplify’s operating and financial results were released earlier today, and are available on Amplify's website at www.amplifyenergy.com. During this presentation, all participants will be placed in a listen-only mode. Today's call is being recorded. A replay of the call will be accessible until Thursday, May 20, by dialing 855-859-2056 and then entering conference ID number 7947106, or by visiting Amplify's website, www.amplifyenergy.com. I would now like to turn the conference over to Eric Willis, Senior Vice President and General Counsel of Amplify Energy Corporation.

Eric Willis

Management

Good morning. And welcome to the Amplify Energy conference call to discuss operating and financial results for the first quarter of 2020. We appreciate you joining us today. Martyn Willsher, Amplify's Interim Chief Executive Officer and Chief Financial Officer will lead the call with comments on our first quarter results and liquidity enhancement initiatives before concluding with comments about our liquidity, hedge positions and operational outlook. We would like to remind you that some of our remarks may contain forward-looking statements and are based on certain assumptions and expectations of Amplify’s management team. These remarks reflect management’s current views with regard to future events and are subject to various risks, uncertainties and assumptions. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct and undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this earnings call. Please refer to our press release and SEC filings for a list of factors that may cause actual results to differ materially from those in the forward-looking statements made during this call. In addition, the unaudited financial information that will be highlighted here is derived from our internal financial books, records, and reports. For additional detailed disclosure, we encourage you to read our Quarterly Report on Form 10-Q, which we expect to file later today. Also, non-GAAP financial measures may be disclosed during this call. Reconciliations of those measures to comparable GAAP measures may be found in our press release or on our website at www.amplifyenergy.com. With this in mind, I will now turn the call over to Martyn Willsher. Martyn?

Martyn Willsher

Operator

Thank you, Eric, and thank you to all of our stakeholders for joining us today. The last few months have been difficult, not only for those of us in the oil and gas sector, but also for the global community due to the profound impact of the COVID-19 pandemic. With that in mind, I would first like to discuss our most important resource, our people. Thanks in no small part to the excellent procedures and initiatives enacted by our field and office staff. I am extremely pleased to be able to say that at this time we have had zero Amplify employees or contractors test positive for COVID-19. Not only that, we have maintained our strong safety standards with zero lost time accidents, and due to the ingenuity and flexibility of our operating teams, we have also had zero operational downtime due to COVID-19. This is a tremendous testament to the people of this Company, and I express my appreciation to all of them for their sacrifices and strength during this time. My remaining remarks will provide an update on our performance in the first quarter, along with providing additional details on our recent liquidity enhancement initiatives, and hedge program before concluding with comments on our operational outlook. Production for the first quarter averaged approximately 29,700 Boe per day, which was at the high end of our guidance range for the quarter. This performance was due to strong results across all of our operated areas, including Bairoil, which produced steadily following start-up challenges in connection with the expansion project in the early part of January. In addition, Mississippi Lime production stabilized following an enhanced, targeted workover program during the quarter, which substantially reduced the backlog of offline wells from the fourth quarter. All other operated areas including East Texas and…