Amplify Energy to cut costs and capex; suspends dividends

May 06, 2020 8:41 AM ETAmplify Energy Corp. (AMPY) StockAMPYBy: Vandana Singh, SA News Editor2 Comments
  • Amplify Energy (NYSE:AMPY) down 2.24% in pre-market after the company reports wider Q1 net loss of $367M, as compared to $28M in Q4 2019, driven by $455M asset impairment charges
  • Daily production of 29.7 MBoe/d was at the high end of quarterly guidance, net cash provided by operating activities reached $13.1M with adjusted EBITDA of $17.2M
  • The company has initiated operating cost & overhead reductions, which are forecasted to generate ~$18M of annual savings.
  • Additionally, expects to deliver a $2.5M annual savings in cash G&A expenses.
  • These savings are expected to be partially realized in Q2 and fully realized by Q3 of 2020
  • Amplify has reduced its 2020 capital spending budget by 41% to a $27M, as well as decides to suspend the quarterly dividend program until further notice, resulting in increased retained cash of ~$15M
  • Previously: Amplify Energy EPS of -$9.77 (May 6)

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