Q4 2024 Amplify Energy Corp Earnings Call
Yes.
Speaker Change: Welcome to amplify Energy's fourth quarter 2024, Investor Conference call.
Operator: Welcome to Amplify Energy's fourth quarter 2024 investor conference call. Amplify's operating and financial results were released yesterday after market close on March 5, 2025 and are available on Amplify's website at www.amplifyenergy.com.
Speaker Change: <unk> operating and financial results were released yesterday after market close on March 5th 2025 and are available on amplifies website at Www Dot amplify energy dotcom.
Operator: During this conference call, all participants will be in a listen-only mode. Today's call is being recorded. A replay of the call will be accessible until March 20, 2025 by dialing 800-654-1563 and then entering access code 71724906.
Speaker Change: During this conference call all participants will be in a listen only mode.
Speaker Change: Today's call is being recorded a replay of the call will be accessible until March 20th 2025 by dialing 800.
Speaker Change: 6541563.
Speaker Change: And then entering access code.
Speaker Change: 717 to 4906.
Operator: A transcript and a recorded replay of the call will also be available on our website after the call.
Speaker Change: A transcript and a recorded replay of the call will also be available on our website after the call.
James Frew: I would now like to turn the conference over to Jim Frew, Senior Vice President and Chief Financial Officer of Amplify Energy Corp.
Jim: I would now like to turn the conference over to Jim <unk>, Senior Vice President and Chief Financial Officer of Amplify Energy Corp.
Jim: Good morning, and welcome to the amplify energy conference call to discuss operating and financial results for the fourth quarter of 2024.
James Frew: Good morning and welcome to the Amplify Energy conference call to discuss operating and financial results for the fourth quarter of 2024. Before we get started, we would like to remind you that some of our remarks may contain forward-looking statements, which reflect management's current views of future events and are subject to various risks, uncertainties, expectations, and assumptions. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurances 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.
Jim: Before we get started we would like to remind you that some of our remarks may contain forward looking statements, which reflect management's current views of future events and are subject to various risks uncertainties expectations and assumptions.
Jim: Although management believes that the expectations reflected in such forward looking statements are reasonable it can give no assurances 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.
James Frew: 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.
Jim: 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.
Jim: In addition, the unaudited financial information that will be highlighted here is derived from our internal financial books Records and reports.
James Frew: For additional, detailed disclosure, we encourage you to read our Form 10-K, which was filed yesterday afternoon, and our Definitive Proxy Statement regarding the Juniper acquisition, which was filed on March 4, 2025. Also, non-GAAP financial measures may be disclosed during this call. Reconciliations of those measures to comparable gap measures may be found in our earnings release or on our website at www.amplifyenergy.com.
Jim: For additional detailed disclosure, we encourage you to read our Form 10-K, which was filed yesterday afternoon in our definitive proxy statement regarding the Juniper acquisition, which was filed on March four 2025.
Jim: Also non-GAAP financial measures may be disclosed during this call.
Jim: Reconciliations of those measures to comparable GAAP measures, maybe found in our earnings release.
Jim: On our website at Www dot amplify <unk> dot com.
Martyn Willsher: During the call, Martyn Willsher, Amplify's President and Chief Executive Officer, will provide an update regarding our strategic initiatives, including our announced transaction with Juniper, two recent deals in East Texas, and an overview of our activities at Beta.
Speaker Change: During the call Martin wheelchair amplifies, President and Chief Executive Officer will provide an update regarding our strategic initiatives, including our announced transaction with juniper.
Speaker Change: Two recent deals in east, Texas, and an overview of our activities at beta.
Daniel Furbee: Next, Dan Furbee, Senior Vice President and Chief Operating Officer, will provide an overview of fourth quarter operational performance and provide a preview of 2025 activities.
Speaker Change: Next Dan Furby, Senior Vice President and Chief operating Officer will provide an overview of fourth quarter operational performance and provide a preview of 2025 activities.
James Frew: Following that, I will discuss fourth quarter financial results, provide an update on our balance sheet and liquidity, and provide additional details on our hedge book.
Speaker Change: Following that I will discuss fourth quarter financial results provide an update on our balance sheet and liquidity and provide additional details on our hedge book.
Martyn Willsher: Finally, Martyn will provide final thoughts before opening the call up for questions.
Speaker Change: Finally, Martin will provide final thoughts before opening the call up for questions with that I will hand, it over to Martin.
Martyn Willsher: With that, I will hand it over to Martyn. Thank you, Jim. I'd like to start with an update on our recently announced transaction with certain portfolio companies of Juniper Capital, discuss our recent Hainesville transactions in East Texas, and provide an update on our key development activity at Beta. On January 15, 2025, Amplify announced that it entered into a definitive merger agreement with privately held Juniper Capital to combine with a certain number of its portfolio companies owning oil-weighted assets and leasehold interests in the DJ and Powder River Basins. We are extremely excited about this deal and believe it is an important step in our strategic development.
Martin Wheelchair: Thank you Jim.
Martin Wheelchair: I'd like to start with an update on our recently announced transaction with certain portfolio companies of Jennifer capital discuss our recent haynesville transactions in East, Texas and provide an update on our key development activity in beta.
Martin Wheelchair: January 15th 2025, and find out that it entered into a definitive merger agreement with privately held juniper capital combined with certain of its portfolio companies owning oil weighted assets and leasehold interest in the DJ and powder River basins.
Martin Wheelchair: Streaming excited about this deal and believe it is an important step in our strategic development.
Martyn Willsher: The deal provides numerous benefits to the organization by increasing our scale and operating margins, expanding our inventory of attractive drilling locations, and providing us with a new core area for potential M&A activity. In regards to scale and upside, using flat pricing of $70 per barrel for oil and $3.50 for natural gas, year-end 2024 approved developed reserves for these assets are 18 million barrels of oil equivalent with a PV10 value of approximately $335 million. And total approved reserves are 50 million barrels of oil equivalent with a combined PV10 value of $614 million. Amplify believes there is additional upside potential on the expansive acreage position, which is comprised of approximately 287,000 net acres and adjacent to some of the largest publicly traded U.S.
Martin Wheelchair: <unk> provides numerous benefits to the organization by increasing our scale and operating margins expanding our inventory of attractive drilling locations, providing us with a new core area for potential M&A activity and.
Martin Wheelchair: In regards to scale and upside using flat pricing of $70 per barrel of oil and $3 50 for natural gas yearend 2024 proved developed reserves for these assets are 18 million barrels of oil equivalent with a PV 10 value of approximately $335 million and total crude reserves are 50 million barrels of oil equivalent with a <unk>.
Martin Wheelchair: Pine <unk>, PV 10 value of $614 million.
Martin Wheelchair: Amplify believes there is additional upside potential on the expansive acreage position, which is comprised of approximately 287000 net acres and adjacent to some of the largest publicly traded U S oil companies.
Martyn Willsher: oil The Juniper transaction is also expected to provide substantial synergies from an overhead and tax perspective with an expected G&A increase of approximately $1 million versus $7 to $8 million for the existing portfolio companies and tax synergies from the stepped-up tax basis of the acquired company. With the combined impact of the asset cash flows and deal synergies, we expect the transaction to be significantly created to free cash flow in 2025 and over a five-year time horizon. The large acreage position and operating footprint in these premier Rocky Mountain basins also provide the company with a new core area for future consolidation opportunities with the potential for creative bolt-on acquisitions from small private companies or non-core assets of large operators.
Martin Wheelchair: Juniper transaction is also expected to provide substantial synergies from an overhead and tax perspective, with an expected G&A increase of approximately $1 million.
Martin Wheelchair: Versus $7 million to $8 million for the existing portfolio companies and tax synergies from a stepped up tax basis of the acquired companies where.
Martin Wheelchair: The combined impact of the asset cash flows and deal synergies, we expect the transaction to entry significantly accretive to free cash flow in 2025 and over a five year time horizon.
Martin Wheelchair: Large acreage position and operating footprint in these premier Rocky Mountain basins also provide the company with a new core area for future consolidation opportunities with the potential for accretive bolt on acquisitions from smaller private companies or noncore assets of large operators.
Martyn Willsher: Additionally, the more broadly scaled Proforma asset base will afford Amplify flexibility to consider portfolio rationalization opportunities to improve operational focus and manage cash flow. Finally, the transaction has the added benefit of bringing on a new long-term partner in Juniper Capital who has demonstrated a strong track record of delivering substantial value to their stakeholders.
Martin Wheelchair: Additionally, the more broadly scale pro forma asset base will afford amplify flexibility to consider portfolio rationalization opportunities to improve operational focus and manage cash flow.
The transaction has the added benefit of bringing on a new long term partner and Juniper capital, who has demonstrated a strong track record of delivering substantial value to our stakeholders.
Martyn Willsher: We anticipate the Juniper transaction will close in the second quarter of 2025.
Martin Wheelchair: We anticipate that Jennifer transaction will close in the second quarter of 2025.
Martin Wheelchair: In addition to the agenda for transaction. The amplify team has recently closed on two separate transactions in east, Texas, allowing the company to bring forward value associated with our Haynesville acreage between the two transactions amplified generated $7 6 million in net proceeds while retaining an overriding royalty interest in the properties with a 10% non operated working.
Martyn Willsher: In addition to the Juniper transaction, the Amplify team has recently closed on two separate transactions in East Texas, allowing the company to bring forward value associated with our Haynesville acreage. Between the two transactions, Amplify generated $7.6 million in net proceeds while retaining an overriding royalty interest in the properties and a 10% non-operated working interest in future development. We believe the acreage conveyed has over 30 undeveloped Haynesville locations with compelling economics.
Martin Wheelchair: Interest in future development.
Martin Wheelchair: We believe the acreage conveyed has over 30 undeveloped haynesville locations with compelling economics.
Martyn Willsher: Although smaller in scope, these deals demonstrate management's commitment to creatively realizing value associated with our more mature economy.
Martin Wheelchair: Although smaller in scope these deals demonstrate management's commitment to creatively realizing value associated with our more mature assets.
Martyn Willsher: At BATA, we intend to build off the successes of the 2024 development program. The first two wells we brought online, the A50 and the C59, continue to perform above our pre-drill type curves, with IRRs in excess of 100%. Based on this, we were able to add 23 additional PUD locations to our year-end reserves with a PV10 value of approximately $180 million at a $70 flat WTI price for oil. In 2025, we plan to complete six additional beta wells, which includes the C-48 and the A-45 that were deferred from the 2024 program. While we are currently planning for five wells per year in 2026 and beyond, with continued success from the 2025 program, we will have the flexibility to accelerate drilling in future years to capture incremental value from this enormous resource.
Martin Wheelchair: At beta we intend to build up the successes of the 2024 development program. The first two wells, we brought online the 850 and <unk> 59 continued to perform above our pre drill type curve with IRR in excess of 100%.
Martin Wheelchair: Based on this we were able to add 23 additional pud locations to our year end reserves with a PV 10 value of approximately $180 million of a $70 flat <unk> price of oil and.
Martin Wheelchair: In 2025, we plan to complete six additional beta wells, which includes a <unk> 48, and the 845 that were deferred from the 2024 program.
Martin Wheelchair: While we are currently planning for five wells per year in 2026 and beyond with continued success from the 2025 program. We will have the flexibility to accelerate drilling in future years to capture incremental value from this enormous resource.
Martyn Willsher: In summary, our accomplishments in 2024 have provided a strong foundation for the future success of Amplify, and we intend to build up that success with our strategic initiatives for 2025.
Martin Wheelchair: In summary, our accomplishments in 2024 it provides a strong foundation for the future success of amplify and we intend to build on that success with our strategic initiatives for 2025. The completion of the Juniper transaction will provide substantial upside in scale to the organization and complement the outstanding development potential of debate asset we also intend to.
Martyn Willsher: The completion of the Juniper transaction will provide substantial upside in scale to the organization and complement the outstanding development potential of the beta asset. We also intend to remain focused on maximizing the value of our existing asset base through our creative capital projects, cost reduction efforts, and the evaluation of portfolio optimization.
Martin Wheelchair: A main focus on maximizing the value of our existing asset base, where accretive capital projects cost reduction efforts and the evaluation of portfolio optimization opportunities with that I will hand, it over to Dan.
Daniel Furbee: With that, I will hand it over to Dan. Thank you, Martyn. During the fourth quarter of 2024, average daily production was approximately 18.5 MBOE per day, a decrease of 0.5 MBOE per day from the prior quarter. Production was impacted primarily by gas volumes, mostly in East Texas, due to purchaser interruptions and residue gas realizations after processing, which resulted in higher NGL realizations as a percentage of our total production. Oil volumes were incrementally higher from the previous quarter, despite platform shutdowns at beta early in the quarter following the completion of the Emission Reduction and Electrification Facility Projects, and 10 ESP failures in the fourth quarter of beta, which significantly impacted our base production.
Dan Furby: Thank you Martin during the fourth quarter of 2020 for average daily production was approximately $18 five Boe per day, a decrease of five <unk> per day from the prior quarter production was impacted primarily by gas volumes, mostly in east, Texas due to purchaser interruptions and residue gas realization.
Dan Furby: After processing, which resulted in higher NGL realizations as a percentage of our total production.
Dan Furby: Oil volumes were incrementally higher from the previous quarter. Despite platform shutdowns at beta are we in the quarter. Following the completion of the emission reduction and <unk> projects and 10 ESP failures in the fourth quarter data, which significantly impacted our base production.
Dan Furby: The multi year electrification and emissions reduction project has now been completed and all of the failed wells at Esp's replaced by the end of January 2025, and we are projecting beta production to be significantly higher in the fourth quarter for the impact of the 2025 drilling program.
Daniel Furbee: The Multi-Year Electrification and Emissions Reduction Project has now been completed, and all of the failed wells have had ESPs replaced by the end of January 2025, and we are projecting beta production to be significantly higher in the fourth quarter for the impact of the 2025 drilling project. As of March 2, 2025, our current 7-day average production rate at beta was 4,834 gross, or 3,635 net, barrels of oil per day, with minimal contribution from the recently completed C-48 well, which we continue to draw down since completing in mid-February. Our current production rates at beta represent an approximate 9% increase from Q4 2024 volume.
Dan Furby: As of March 2025, our current seven day average production rate at beta was 4834 gross or 3635 net barrels of oil per day with minimal contribution from the recently completed <unk> 48, well, which we continue to drawdown since completing in mid February.
Dan Furby: Our current production rate that beta represent an approximate 9% increase from fourth quarter 2020 for volumes.
Daniel Furbee: Our production commodity mix for the quarter was 45% oil, 17% NGLs, and 38% natural gas.
Dan Furby: Our production commodity mix for the quarter was 45% oil, 17% Ngls and 38% natural gas looking forward 2025, our production guidance range is 19000 21000 barrels of oil equivalent per day.
Daniel Furbee: Looking forward to 2025, our production guidance range is 19,000 to 21,000 barrels of oil equipment per day. The midpoint of our oil production guidance represents a 7% increase from 2024 oil production, driven by our development of data, which is projected to more than offset the natural oil decline of our Bay Pass. For the fourth quarter, lease offering expenses were approximately $35.1 million, a $1.8 million increase from the prior quarter. The 5% increase in LOE from the prior quarter was mostly driven by the additional unplanned work overs at beta due to the failed ESP. With those wells now back online, Amplify expects those costs to normalize.
Dan Furby: Mid point of our oil production guidance represents a 7% increase from 2024 oil production driven by our development of data, which is projected to more than offset the natural oil decline of our base assets.
Dan Furby: For the fourth quarter lease operating expenses were approximately $35 1 million.
Dan Furby: A $1 $8 million increase in the prior quarter to 5% increase in <unk> from the prior quarter was mostly driven by the additional unplanned workovers that data due to the failed ESP.
Dan Furby: With those wells now back online and I expect the cost of normalized lease operating expenses for the fourth quarter also did not reflect $900000 of income generated by magnify energy services.
Daniel Furbee: These operating expenses for the fourth quarter also do not reflect $900,000 of income generated by Magnify Energy Services. We expect to continue improving our cost structure throughout 2025 and our guiding lease operating expense to the midpoint of $143 million, which is approximately flat when compared to 2024, despite expected increases in total production and cost pressures we are seeing from the electric utility rate that bear oil, which represents a large portion of our total oil that we produce. We are also guiding Magnify EBITDA to a midpoint of $5 million in 2025 up from $3 million of EBITDA generated in 2024.
Dan Furby: We expect to continue improving our cost structure throughout 2025, and our guiding lease operating expense the midpoint of $143 million.
Dan Furby: Which is approximately flat when compared to 2024, despite expected increases in total production and cost pressures. We are seeing from the electric utility rate that they're oil which represents a large portion of our total <unk>.
Dan Furby: We are also guiding magnify EBITDA to a midpoint of $5 million in 2025 up from $3 million EBITDA generated in 2024.
Dan Furby: The company's total capital investment for fourth quarter was $15 3 million.
Daniel Furbee: The company's total capital investment for the fourth quarter was $15.3 million. Approximately $10 million of this capital was invested at Beta in our Development Drilling Program and the completion of the Lexication and Emission Reduction Facility. The remaining capital was invested in non-operated drilling in the Eagleford and East Texas, as well as various capital workovers and facility projects across Iraq.
Dan Furby: Approximately $10 million of this capital was invested that data and our development drilling program and the completion of electrification and emission reductions building project. The remaining capital was invested in non operated drilling in the Eagle Ford and East Texas.
Dan Furby: As well as various capital Workovers and facility projects across our assets.
Dan Furby: Our 2025 capital program is budgeted to be between $70 million to $80 million. The majority of our capital will be invested at beta with $30 million allocated development program and additional capital to further upgrade our drilling rigs.
Daniel Furbee: Our 2025 capital program is budgeted to be between $70 and $80 million. The majority of our capital will be invested at beta, with $30 million allocated to the development program and additional capital to further upgrade our drilling. In 2024, we completed two wells with excellent results, which increased overall beta production by approximately 15%. Based on these results, we intend to complete six wells in 2025 with high expectations of production growth. The C-48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February due to equipment availability issues.
Dan Furby: In 2024, we completed two wells with excellent results, which increase overall beta production by approximately 15%.
Dan Furby: Based on these results, we intend to complete six wells in 2025 with high expectations of production growth.
Dan Furby: The <unk> 48, well the first of the six wells to be completed in 2025 whats drove in the fourth quarter of 2024 and completed in mid February due to equipment availability issue.
Daniel Furbee: The C-48 is our first horizontal completion in the C-suite. Similar to the A-50 and C-59 wells drilled in 2024, the completion of the C-48 well was initially designed to target the D-29. However, drilling conditions encountered in the de-sand and the attractive geologic characteristics observed in the logs of the sea sand led to the decision to complete the well as a sea sand producer. We are currently drawing the well down and will share the details of this production when we have at least a month of production data. The remaining five completions of 2025 are planned as B-SANW.
Dan Furby: The C 48 is our first horizontal completion in <unk> similar to the 859 wells drilled in 2020 for the completion of the <unk> 48, well was initially designed target the DCM, however drilling conditions encountered in the D sand.
Dan Furby: And the attractive geologic characteristics observed and the loss of the season led to the decision to complete the well as a C sand producer.
Dan Furby: We're currently drilling the well down and we will share the details of this production when we have at least a month of production data the.
Dan Furby: The remaining five completions in 2025 are planned as the sand wells. However, we always have the option to complete any of the eight <unk> sand formation in the stack pay reservoir based upon the log data we acquired while drilling.
Daniel Furbee: However, we always have the option to complete any of the A through D sand formations in this SACPE reservoir based upon the log data we acquire while drilling. The planned 2025 completion also includes the A45 well, which was the first well spotted in our drilling program at Beta in early 2024, but was deferred due to equipment problems leading to well bore instability. Capital costs for the new wells in the 2025 program is estimated to be between $5 to $6 million per well. And like the A50 and C59 wells drilled in 2024, we expect quick paybacks and rates of return of approximately $100 million.
Dan Furby: The planned 2025 completion also include the $8 five well, which was the first of all slide.
Dan Furby: Drilling program with data in early 2024 was deferred due to equipment problems, leading to wellbore instability issues.
Capital costs for the new Wells in 2025 program is estimated to be between five to 6 million per well and like the 850 can see 59 wells drilled in 2024, we expect quick paybacks and rates of return of approximately 100%.
Daniel Furbee: We have laid out some economic results to date of the 8050 and C59 wells in the investor presentation available on the Amplify website and the type curve for the wells we plan to complete. Our updated investor presentation also includes a map of our next 25 planned locations at Theta. This map represents the locations we currently have classified as types. However, based upon the estimated ultimate recovery of the field using original oil in place calculations and analogous field recovery factors, it will likely be additional development locations after the completion of the initial 25 wells, which our technical team is continually evaluating.
Dan Furby: We have laid out some economic results to date of the 850 <unk> nine wells in the Investor presentation are available on <unk> website, and the type curves for the wells we plan to complete in 2025.
Dan Furby: Our updated Investor presentation also includes a map of our next 25 planned locations that beta. This map represents the locations. We currently have classified as high however, based upon the estimated ultimate recoveries of field using original oil in place calculations and analogous to the old recovery factors, there will likely be additional development located.
Dan Furby: After the completion of the disappointing five wells with our technical team is continually evaluating.
Dan Furby: In addition to development drilling at beta we also have capital allocated for facility investments with the largest component of this capital B, an estimated $8 million to upgraded two mile pipeline that shifts all produced fluid from platform Eureka platform early.
Daniel Furbee: In addition to development, drilling, and beta, we also have capital allocated for facility investments, with the largest component of this capital being an estimated $8 million to upgrade a two-mile pipeline that shifts all produced fluid from Platform Eureka to Platform LE. We perform extensive mechanical integrity testing each year to our critical equipment and pipelines and take a proactive approach to upgrade any equipment that our internal and external experts need necessary.
Dan Furby: We perform extensive mechanical integrity testing each year two of our critical equipment and pipelines and take a proactive approach to upgrade any equipment that are internal and external experts deemed necessary.
Daniel Furbee: Our 2025 budget includes an estimated $12 to $15 million investment in the participation of very attractive non-op drilling alongside experienced operators in both our East Texas and Eagleford positions. In East Texas, we are participating in the completion of four non-op development wells, two Cotton Valley and two Haynesville, in which we have a 25 to 30 percent work We expect these wells to be completed and online by mid-year. In the Eagle Bird, we are participating in 14 gross 0.7 net new development wells and two gross 0.4 net recompletion projects, all of which are scheduled to be completed in the first half of 2025.
Dan Furby: Our 2025 budget includes an estimated $12 million to $15 million investment in the participation of very attractive non op drilling alongside experienced operators in both our east, Texas Eagle Ford position.
Dan Furby: In East, Texas, we have participated in the completion of four non op development wells to Cotton Valley, and two Haynesville and which we have a 25% to 30% working interest. We expect these wells to be completed and online by mid year in the Eagle Ford. We have participated in 2014 gross seven net new development wells and two.
<unk> gross for net re completion projects all of which are scheduled to be completed in the first half of 2025.
Daniel Furbee: The majority of the remainder of our 2025 capitals will be invested in active capital workover programs in Oklahoma, East Texas, and Bear Oil, which includes artificial lift conversions, recompletes, and well reactivation, as well as facility upgrade projects primarily in Bear Oil and additional investments in Amplify Energy services. Some of the facility projects at Bexar Oil are intended to improve the sufficiencies at our CO2 plant, which will reduce our power usage, resulting in an expected savings of over $500,000 per month, starting in the second half of 2025. We expect these savings to persist in the following years, significantly increasing the profitability at Bexar Oil.
Dan Furby: The majority of the remainder of our 2020 capital will be invested in active capital Workover programs in Oklahoma East, Texas, and bear oil, which includes artificial lift conversions re completes in well reactivation.
Dan Furby: As well as facility upgrade projects, primarily in bare oil and additional investments in magnify energy services.
Dan Furby: Some of the solar projects that they're oil are intended to improve the sufficiency at our Sidoti <unk>, which will reduce our power usage, resulting in an expected savings of over $500000 per month, starting in the second half of 2025, we expect these savings to persist in the following years significantly increasing the profitability of payroll.
Daniel Furbee: In regards to Magnify, we intend to invest $1.4 million in additional company-owned compressors, vacuum trucks, and other ancillary oilfield service equipment. Since its conception in late 2023, Magnify has generated $3.7 million of adjusted EBITDA, with a capital investment of only $1.7 million. We expect Magnify to generate approximately $5 million of EBITDA in 2025, with a run rate EBITDA of approximately $6 million by year end, with an anticipated total cumulative investment of only approximately $3 million. In addition to the cash flow generation potential of Magnify, this business line is extremely valuable to Amplify as it allows us to more efficiently operate and manage our mature asset base in East Texas and Oklahoma.
Dan Furby: In regards to magnify, we intend to invest $1 4 million and additional company owned compressors vacuum trucks and other ancillary oilfield service equipment since its inception in late 2023 magnified generated $3 7 million of adjusted EBITDA with a capital investment only $1 $7 million, we expect magnified.
Dan Furby: <unk> approximately $5 million of EBITDA in 2025, with a run rate EBITDA of approximately $6 million by year end with anticipated total Cumulus investment of only approximately $3 million.
Dan Furby: In addition to the cash flow generation potential magnify. This business line is extremely valuable to amplify as it allows us more efficiently operate and manage our mature asset based in Texas and Oklahoma.
Daniel Furbee: In regards to the Juniper assets, Juniper is currently drilling a two-well pad in the D.J. Basin, and we anticipate fracking these wells sometime in the second quarter. We're currently working with the Juniper team to evaluate the potential for additional development in both the D.J.
Dan Furby: In regards to Juniper assets Juniper is currently drilling a two well pad in the DJ Basin and we anticipate fracking. These wells sometime in the second quarter. We are currently working with the juniper team to evaluate the potential for additional development in both the DJ and powder River basin in the second half of 2025 and looking forward to 2026.
Daniel Furbee: and Powder River Basins in the second half of 2025 and looking forward to 2026.
James Frew: With that, I will turn it over to Jim. Thank you, Dan.
Jim: With that I will turn it over to Jim.
Jim: Thank you Dan I would now like to discuss the following items fourth quarter financial performance balance sheet and liquidity and hedging.
James Frew: I would now like to discuss the following items, fourth quarter financial performance, balance sheet and liquidity, and hedging. With respect to fourth quarter financial performance, the company reported a net loss of approximately $7.4 million compared to $22.7 million of net income in the prior quarter. The change was primarily attributable to a non-cash, unrealized loss on commodity derivatives in the fourth quarter compared to an unrealized gain in the prior quarter. excluding the impact of unrealized loss on commodity derivatives in addition to other one-time impacts, adjusted net income was $5.1 million for the fourth quarter. For the year, net income was $13 million and adjusted net income was $35.8 million.
With respect to fourth quarter financial performance the company reported a net loss of approximately $7 4 million.
Jim: Compared to $22 7 million of net income in the prior quarter.
Jim: The change was primarily attributable to a noncash unrealized loss on commodity derivatives in the fourth quarter compared to an unrealized gain in the prior quarter.
Jim: Excluding the impact of unrealized loss on commodity derivatives. In addition to other onetime impacts adjusted net income was $5 1 million for the fourth quarter.
Jim: For the year net income was $13 million and adjusted net income was $35 8 million adjusted net income was up 48% in 2024 compared to 2023.
James Frew: adjusted net income was up 48% in 2024 compared to 2023. Fourth quarter adjusted EBITDA was $21.8 million, which was slightly below expectations.
Jim: Fourth quarter, adjusted EBITDA was $21 8 million.
Jim: Which was slightly below expectations.
James Frew: As Dan mentioned, we had some unexpected downtime at beta due to increased well failures that reduced production and increased work over cost. However, we now have those wells back online and production has increased. Full year adjusted EBITDA was $103 million, in line with our guidance, and up 17% compared to 2023. In total, fourth quarter lease operating expenses were approximately $35.1 million, which was in line with expectations. As I just mentioned, we did have higher LOE at beta due to an increase in expense workovers. However, that was offset by lower LOE at bear oil due to a one-time benefit as the result of an accounting adjustment.
Jim: As Dan mentioned, we had some unexpected downtime at beta due to increased well failures that reduced production and increased workover costs. However, we now have those wells back online and production has increased.
Jim: Full year, adjusted EBITDA was $103 million in line with our guidance and up 17% compared to 2023.
Jim: In total fourth quarter lease operating expenses were approximately $35 1 million.
Jim: Which was in line with expectations.
Jim: As I just mentioned, we did have higher LOE at beta.
Jim: Between increase and expense Workovers, however that was offset by lower LOE at <unk> due to a onetime benefit as the result of an accounting adjustment.
James Frew: For the year, total LOE was $143 million, or $19.95 per BOE, which was in line with our guidance. With respect to other costs, fourth quarter GPT costs were $4.5 million, or $2.62 per BOE, while production taxes were $5.4 million, or 8% of oil and gas revenue. Cash G&A in the fourth quarter was $6.3 million, and we incurred $3.7 million of interest. GPT, production taxes, cash G&A, and interest expense were all in line with expectations. With respect to capital, Amplify invested $15.3 million in the fourth quarter, which was slightly higher than expectations. The company's capital allocation was approximately 65% for the beta facility projects and development drilling, with the remainder distributed across the company's other assets.
Jim: For the year total LOE was $143 million or.
Jim: Or $19 95 per BOE, which was in line with our guidance.
Jim: With respect to other costs fourth quarter, GPT costs were $4 5 million or.
Jim: Or $2 62 per Boe.
Jim: Production taxes were $5 4 million.
Jim: Four 8% of oil and gas revenue.
Jim: Cash G&A in the fourth quarter was $6 3 million and we incurred $3 7 million of interest expense.
Jim: <unk> production taxes cash G&A and interest expense were all in line with expectations.
Jim: With respect to capital amplify invested $15 3 million in the fourth quarter, which was slightly higher than expectations.
Jim: The company's capital allocation was approximately 65% for the beta facility projects and development drilling with.
Jim: With the remainder distributed across the company's other assets.
James Frew: Free cash flow, defined as adjusted EBITDA, less CapEx, and cash interest expense. $2.9 million for the fourth quarter of 2024. Amplify has now generated positive free cash flow for 10 consecutive quarters, illustrating the strong, sustainable cash-generating potential of our mature, diversified asset base. As of December 31st, Amplify had $127 million of debt outstanding under its revolving credit facility. Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at beta. At year-end, the company's net debt to last 12 months adjusted EBITDA was 1.2 times.
Jim: Free cash flow defined as adjusted EBITDA less capex and cash interest expense was $2 9 million for the fourth quarter of 2024.
Jim: Amplify has now generated positive free cash flow for 10 consecutive quarters illustrating the strong sustainable cash generating potential of our mature diversified asset base.
Jim: As of December 31, amplify had $127 million of debt outstanding under its revolving credit facility.
Jim: Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity primarily at beta.
Jim: At year end, the company's net debt to last 12 months adjusted EBITDA was one two times.
James Frew: As a result of the announced transaction with Juniper Capital, Amplify is currently working on integrating the newly acquired Rockies assets into the Amplify organization. Furthermore, the company is pursuing additional financing in connection with the transaction prior to close. Amplify intends to update the market with developments on the transaction as they progress.
Jim: As a result of the announced transaction with Juniper capital amplify is currently working on integrating the newly acquired Rockies assets into the amplify organization.
Jim: Furthermore, the company is pursuing additional financing in connection with the transaction prior to close ample.
Jim: Amplify intends to update the market with developments on the transaction.
Jim: As they progress.
Jim: Recently amplified took advantage of volatility in the market to add to our hedge position further protecting future cash flows amplify executed crude oil swaps covering the second half of 2025 through year end 2026 at an average price of $68 10 per barrel.
James Frew: Recently, Amplify took advantage of volatility in the market to add to our hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at an average price of $68.10 per barrel. We also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBTU and a weighted average ceiling of $3.98 per MMBTU. As of March 5th, our forecasted PVP crude oil production was approximately 70 to 75% hedged for 2025 and 25 to 30% hedged in 2026. On the gas side, our forecasted PDP production is hedged 85 to 90% for 2025 and 2026 and 15 to 20% hedged in 2027.
Jim: We also added natural gas collars for a portion of 2027 with a weighted average floor of $3 63 per and then Btu and a weighted average ceiling of $3 98 per <unk>.
Jim: As of March 5th our forecasted PDP crude oil production was approximately 70% to 75% hedged for 2025, and 25% to 30% hedged in 2026.
Jim: On the gas side, our forecasted PDP production is hedged, 85% to 90% for 2025, and 2026 and 15% to 20% hedged in 2020.
Jim: We will continue monitoring the market and we will look for opportunities to add to our strong hedge positions.
James Frew: We will continue monitoring the market and we will look for opportunities to add to our strong hedge position.
Martyn Willsher: And with that, I'll turn the call back to Martyn.
Jim: And with that I'll turn the call back tomorrow.
Jim: Thank you Jim.
Martyn Willsher: Thank you, Jim. Yesterday, we provided standalone operational and financial guidance for Amplify in 2025. Following the close of the Juniper transaction, we will update guidance for the combined company. As noted in our press release, we've provided additional information about the Juniper assets and our 2025 beta development plan in our latest investor presentation, available on our investor relations website.
Speaker Change: Yesterday, we provided a standalone operational and financial guidance for amplify in 2025.
Speaker Change: Following the close of the June for transaction, we will update guidance for the combined company as noted in our press release, we have provided additional information about the juniper assets and our 2025 beta development plan and our latest investor presentation available on our Investor Relations website.
Speaker Change: As we look ahead, we are excited about amplifies future amplify remains committed to exploiting the long term value potential of the beta field and we anticipate strong growth oil production from the area in 2025.
Martyn Willsher: As we look ahead, we are excited about Amplify's future. Amplify remains committed to exploiting the long-term value potential of the beta field, and we anticipate strong growth for oil production from the area in 2025. This enthusiasm is warranted by the strong results from the A50 and C59 wells, which have breakeven prices below $35 per barrel and compare favorably to the economics of the best oil development plays in the country. The successful closing of the Juniper transaction anticipated in the second quarter will provide substantial benefits to the company and creates the flexibility to consider a range of value maximizing opportunities for our existing customers.
This enthusiasm is warranted by the strong results from the 850, and <unk> 59, wells, which have breakeven prices below $35 per barrel and compare favorably to the economics of the best oil development plays in the country.
Speaker Change: The successful closing of the Jennifer transaction anticipated in the second quarter will provide substantial benefits to the company and creates the flexibility to consider a range of value maximizing opportunities for our existing assets.
Martyn Willsher: In summary, our team is excited for the opportunities in front of us, and we believe we have all the elements in place to make 2025 a very successful year for the company and its stakeholders.
Speaker Change: In summary, our team is excited for the opportunities in front of US and we believe we have all the elements in place to make 2025, a very successful year for the company and its stakeholders with that operator, we are now open for questions.
Operator: With that, Operator, we are now open for questions. If you would like to ask a question, please press star and 1 on your telephone keypad now and you'll be placed into the queue in the order received. If you would like to remove yourself at any time, press pound and 1 to be removed from the queue. Once again, if you would like to ask a question, please press star and 1 on your phone now. and we'll pause for just a moment to allow everyone an opportunity to.
Speaker Change: If you would like to ask a question. Please press star and one on your telephone keypad now and youll be placed into the queue in the order received.
If you would like to remove yourself, but anytime press pound and one can be removed from the Q.
Speaker Change: Once again, if you would like to ask a question. Please press star and one on your phone now.
Speaker Change: Well pause for just a moment to allow everyone an opportunity to signal.
Speaker Change: And our first question today will come from Jeff Gramm with Alliance Global partners.
Jeffrey Grampp: And our first question today will come from Jeff Grampp with Alliance Global Partners. I want to start first in beta. I want to dig in on this CSAND versus DSAND kind of dynamic with the upcoming well result. Can you give us a little bit of context, I guess, like how much legacy development or production is derived from the CSAND? How productive is that across the acreage position? And also wondering if we should be adjusting our expectations for well performance at all on this upcoming well, relative to the first couple well results in the type curve data that we have out there.
Speaker Change: Well I'll start first.
Speaker Change: Data.
Speaker Change: I wanted to dig in on the CCM versus the sand kind of dynamic with the upcoming well result.
Can you give us a little bit of context, I guess like how much legacy development or production is derived from the C sand how.
Speaker Change: Productive is that across the acreage position and also wondering if we should be adjusting our expectations for well performance at all on this upcoming well relative to the first couple while results in the type curve data that we have out there.
Daniel Furbee: Thanks.
Dan Furby: Hey, Jeff It's Dan.
Daniel Furbee: Hey Jeff, this is Dan. Sea sand historical development versus de-sand, so going back in history, the majority of all these wells were drilled in the 80s by Shell, and they were drilled as more or less vertical wells, as we talked about before, cutting through all sands, A through D, even some through A through F, and all productions commingled. So sea and de-sand performance in terms of a standalone horizontal well, like we drilled the last two de-sand wells horizontally, not a lot of data to go off of. Our type curves were derived off of volumetrics and some other reservoir calculations, that's how we did the de-sand.
Dan Furby: C sand historical development versus defense, so going back in history and have already all of these wells are drilled the avs by shell and they were drilled as more or less vertical wells as we've talked about before cutting through all sands a through D. Even some through a through F.
Dan Furby: And all production co mingled, so C and D sand performance in terms of a standalone horizontal well likely drove flat two D sand wells horizontally.
Dan Furby: A lot of data to go off of our type curves are derived off of volume metrics.
Dan Furby: And some other reservoir calculations of how we did the <unk> sand.
Daniel Furbee: The sea sand result, we expect good results. The reservoir looks good. Like we said, we completed the well a couple weeks ago. These wells typically take a couple weeks, you flow back water for a little while, then you start seeing oil cut, and then you draw down the pressure and the oil increases over time. So we're currently drawing down the pressure, we see a good oil cut right now, and in terms of expectation of the sea versus the de-sand, like I said, there's not analog wells to go off of a standalone sea horizontal versus de-horizontal either.
Dan Furby: The C sand resolved, we expect good results the reservoir it looks good.
Dan Furby: We said, we completed well couple of weeks ago. These wells typically take a couple of weeks you flow back water from a while then you start seeing oil cuts and then you drawdown the pressure in the oil increases over time.
Dan Furby: So we're currently drawn down the pressure, we see a good oil cut right now and in terms of expectation of a C versus D. Sand like I said theres not analog wells the golf ball, the Standalone C horizontal versus D horizontal either but the reservoir characteristics going to C versus D is not as good but we still expect that the <unk>.
Daniel Furbee: But the reservoir characteristics of the sea versus the de-sand is not as good, but we still expect that the sea sand will be an attractive target that will yield good results across the field.
Dan Furby: That will be an attractive target how youll good results.
Dan Furby: Crop field.
Yes.
Daniel Furbee: Great, thanks, that's really helpful.
Speaker Change: Great. Thanks, that's really helpful and for my follow up for the planned new drills for this year can you give us a flavor of how much of a step out are these relative to the prior was prior wells. We've drilled are are we going into new fault blocks or we just kind of offsetting areas that had been kind of proven already or what's kind of the I guess.
Daniel Furbee: And for my follow up, for the planned new drills for this year, can you give us a flavor of how much of a step out are these relative to the prior wells we've drilled? Are we going into new fault blocks? Are we just kind of offsetting areas that have been kind of proven already? Or what's kind of the, I guess, risk appetite for offset wells versus kind of jumping in the new fault block? Yeah, low risk compared to what we've done so far. The two wells we've brought on, the D-Sand A-50 and the C-59, each of those were drilled in the two main fault blocks we're targeting.
Speaker Change: Appetite for offset wells versus kind of jumping in the new fault blocks.
Speaker Change: Yes, low risk compared to what we've done so far the two wells we brought on the <unk> sand <unk> see 59, each of those were drilled in the two main fault blocks, we're targeting so we call. It the main fault block in our southern fault block.
Daniel Furbee: So we call it the main fault block and our southern fault block. The first well we're drilling that we're spotting here very soon will be in the same fault block as the C-59 and expect to be very low risk in terms of the reservoir and the quality. And then the Most are well-leaping in that fault block, or what we call the main fault blocks where the 850 is, and a lot of well results there as well. So we do not see these as step-outs from what we've done so far.
Speaker Change: First of all we're drilling that well.
Speaker Change: Corresponding here very soon we'll be in the same fault block as the <unk> 59.
Speaker Change: And so that could be very low risk in terms of the reservoir and the quality.
Speaker Change: And then the.
Speaker Change: Most of our wells have been that fault block or what we call. The main fault blocks, where the <unk> and a lot of well results there as well so we do not Cvs at step outs from what we've done so far.
Speaker Change: Okay, great. Thank you guys for the details, especially at a time.
Daniel Furbee: Okay, great. Thank you guys for the details. Appreciate the time.
Speaker Change: Yes.
Speaker Change: And as a reminder, if you'd like to ask a question. Please press star one at this time.
Operator: And as a reminder, if you'd like to ask a question, please press star 1 at this time.
Sebastian Chandra: And we will move to our next question from Sebastian Chandra with benchmark.
Subhasish Chandra: And we'll move to our next question from Subhasish Chandra with Benchmark. Is there an oil price where you might review your 25 capex plan?
Sebastian Chandra: Is there a oil price where you my.
Sebastian Chandra: Review your 25 Capex plan.
Sebastian Chandra: Okay.
Sebastian Chandra: Hey.
Martyn Willsher: Hey, good morning, Subhas. This is Martyn. I think, you know, obviously, we've seen a lot of volatility in the oil price. I mean, I think six weeks ago, it was north of $75 a barrel, and now it's $66, $67 a barrel. So, you know, with our beta development specifically, I think we're, you know, still comfortable in that price range. But, you know, obviously, if, you know, prices were to continue to go down, you know, from a free cash flow management perspective, we'll, we'll continue to look at it. You know, we do have a lot of development this year coming online.
Sebastian Chandra: Good morning <unk>.
Martin.
Sebastian Chandra: I think obviously, we've seen a lot of volatility in the oil price I think six weeks ago. It was north of $75 a barrel.
Sebastian Chandra: At 66, $67 a barrel so now with our beta development, specifically I think we're still comfortable on that price range, but.
Sebastian Chandra: Certainly if prices were to continue to go down from a free cash flow management perspective.
Sebastian Chandra: We'll continue to look at it now.
Sebastian Chandra: Now we do have a lot of development this year coming online in both the Eagle Ford and East, Texas, as well which is.
Martyn Willsher: In both the Eagleford and East Texas as well, which is, you know, the East Texas is obviously gassier, so we wouldn't anticipate any adjustments on those, those particular projects. So I think as you get into the second half of the year, you'd maybe kind of take a look at things if prices really continue to go down. But at present, we're very comfortable with what we have planned, especially with the hedging we have on the oil and gas side for this year.
Sebastian Chandra: Texas will obviously gas here so.
Sebastian Chandra: So we wouldn't anticipate any adjustments on those particular projects.
Sebastian Chandra: I think as you get into the second half of the year, you maybe kind of take a look at things as prices really continue to go down but at present, we're very comfortable with what we have planned, especially with the hedging we have on the.
Sebastian Chandra: Oil and gas side for this year.
Sebastian Chandra: Okay, Yes.
Subhasish Chandra: Okay, yeah, and maybe if...
Sebastian Chandra: <unk>.
Sebastian Chandra: Maybe.
Sebastian Chandra: Maybe this is a difficult question to answer but do you think by the time the deal closes as much.
Martyn Willsher: Maybe this is a difficult question to answer, but do you think by the time the deal closes there's much stub capex from the Juniper portfolio, or do you think their portfolio is more front-end loaded and less in the back half? So they're currently finishing up the drilling of the two DJ wells that Dan mentioned. I actually expect those to be finished drilling this weekend. From there, we expect to complete those on after the merger closes sometime in kind of the second half of the second quarter. From there, we obviously have the flexibility on what we will do for the remainder of 2025 and 2026.
Sebastian Chandra: Stub of Capex from the Juniper portfolio or do you think their portfolio is more front end loaded and.
Sebastian Chandra: Less in the back half.
Dan Furby: So they are currently finishing up the drilling of the two DJ wells that Dan mentioned.
Sebastian Chandra: Actually I expect those speaking.
Dan Furby: No finish drilling this weekend.
From there we expect to complete those on after the merger closes sometime in kind of the second half of the second quarter from there. We obviously have the flexibility on what we will do for the remainder of 2025 and 2026. Luckily there is not a lot of near term lease issues.
Martyn Willsher: Luckily, there's not a lot of near term lease issues. Some things that we want to consider in the DJ specifically, but for the most part, that acreage position is either held by production or long term leases. So we have a lot of flexibility there in terms of what we would want to do from a drilling perspective. And certainly we're going to consider that as we put together the plan for the remainder of 2025 and or the plan to kind of get going in 2026.
Dan Furby: Some things that we want to consider in the DJ specifically, but for the most part that acreage position is either held by production or long term leases. So we have a lot of flexibility there in terms of what we were going to do from a drilling perspective, and certainly we're going to consider that as we put together the plan for the remainder of 25% and our plan to.
Dan Furby: Kind of get going in 'twenty six.
Speaker Change: Okay, Yeah, I guess im finally.
Subhasish Chandra: Okay, thanks.
Martyn Willsher: Yeah, I guess then finally, you know, the Magnify 25 Outlook, you know, that's a standalone, not a proform Outlook, but what do you think the potential is for Magnify with the Juniper assets, if any? That's definitely something we'll start looking at. Right now, our magnified services are limited to East Texas and Oklahoma. It started in East Texas really as, you know, a lot of competition for services with some of the Hainesville activity, especially the Hainesville moving our way. And we found it better to bring some of that stuff in-house. We saw compressor rates going up.
Speaker Change: The magnify 25 outlook, that's a standalone not a pro forma outlook.
Speaker Change: What do you think the potential is.
Speaker Change: For magnify with the Juniper assets this Tony.
Speaker Change: So it's definitely something we'll start looking at right now are magnified services are limited to east, Texas and Oklahoma.
Speaker Change: It start in East, Texas really as a lot of competition for services with some of the Haynesville activity, especially the Haynesville moving our way.
Speaker Change: And we found it better to bring stuff in house, we saw compressor rates going up we saw swab rating grades going up slick line units all those different items.
Martyn Willsher: We saw swab rates going up, slick line units, all those different items. So we delved into it there. And yeah, you're right, we're not expanding beyond Oklahoma and East Texas in our budget currently. But I think this year, we'll take a hard look at the entire Wyoming area we have now with kind of that region being, you know, the powder, D.J. and our bare oil asset up there. We kind of have a large aggregate of assets in one area, and it'd be something to be looking at for Magnify.
Speaker Change: So we delve into it there and yes, you are right, we're not we're not expanding beyond Oklahoma and East, Texas in our budget currently but I think this year, we'll take a hard look at.
Speaker Change: The entire Wyoming area, we have now with kind of that region being the powder DJ Anna bear oil asset up there, we kind of have a large aggregate of assets in one area tends to be something will be looking at for magnify.
Okay, we'll stay tuned thank you.
Subhasish Chandra: Okay, we'll stay tuned. Thank you.
Speaker Change: And it appears we have no further questions at this time I will now turn the program back to our presenters for closing remarks.
Operator: And it appears we have no further questions at this time.
Martyn Willsher: I will now turn the program back to our presenters for closing remarks. Great, thank you.
Speaker Change: Great. Thank you.
Martyn Willsher: Before I get to my final remarks, I do want to touch on one question I received earlier and make sure that it was, it's clear, you know, regarding the A45, you know, we've, you know, deferred that from Q4. One of the reasons, or the key reason is that our development program this year is going to be Eureka weighted. So, A45 was drilled off the LM platform. And so the next three wells that we will be drilling in the 2025 LM program are all off Eureka. There is. You know, it does take a little bit of time and money to switch from Eureka to Ellyn.
Speaker Change: Before I get to my final remarks, I do want to touch on one question I received early on to make sure that it was it's clear.
Regarding the $1 45.
Speaker Change: Deferred that from Q4, one of the reasons are the key reason is that our development program. This year is going to be Eureka weighted. So a 45 was drilled off the <unk> platform and so the next three wells that we will be drilling into $2025 promo roll off Eureka there is.
Speaker Change: Okay.
Speaker Change: Does take a little bit of time and money to switch from Eureka to Ellen and so the reason why that well. While we went ahead and finished the C 48 to <unk> 45 will be later in the year, because we're we're going to throw off Eureka for the first call. It two three quarters of the year and then move to Alan later in the year. So that was one clarification I wanted to provide an.
Martyn Willsher: And so the reason why that, well, while we went ahead and finished the C48, the A45 will be later in the year because we're going to draw off Eureka for the first, call it, two, three quarters of the year and then move to Ellyn later in the year.
Martyn Willsher: So that was one clarification I wanted to provide on the 25 beta development program.
Speaker Change: The 25 beta development program.
Martyn Willsher: With that, I'd just like to express my appreciation to all of our employees for their outstanding efforts and dedication this year, as well as the continued support of our stakeholders. We really appreciate you participating in the call today. And as always, if you have follow-up questions, please reach out to us directly. Thank you. And this does conclude today's Amplify Energy's investor conference call. Thank you for your participation. You may now disconnect. The host has ended this call. Goodbye.
Speaker Change: With that I'd, just like to express my appreciation to all of our employees for their outstanding efforts and dedication this year as well as the continued support of our stakeholders and we really appreciate you participating the call today and as always if you have follow up questions. Please reach out to us directly. Thank you.
Speaker Change: Yes.
Speaker Change: This does conclude today's amplify Energy's Investor Conference call. Thank you for your participation you may now disconnect.
Speaker Change: The host has ended this call goodbye.