Amplitude Energy Breaks Production Records as ECSP Drilling Begins
Amplitude Energy has reported record quarterly production and revenue for Q2 FY26, alongside a dramatic reduction in net debt and the commencement of drilling for its East Coast Supply Project.
- Record quarterly production of 7.03 PJe, up 2% from prior quarter
- Record revenue of $71.6 million with average gas price rising to $10.32/GJ
- Net debt slashed by 85% to $34.2 million due to strong cash flow and equity raising
- East Coast Supply Project drilling phase started with Transocean Equinox rig
- Pipeline license approval enables production trials above nameplate capacity
Operational Milestones Drive Growth
Amplitude Energy has delivered a standout performance in the second quarter of fiscal 2026, setting new records for both production and revenue. The company achieved a quarterly production of 7.03 petajoules equivalent (PJe), a 2% increase over the previous quarter, driven primarily by strong output at the Orbost Gas Processing Plant (OGPP) and the Athena Gas Plant.
Notably, the OGPP operated with exceptional reliability, running above 66 terajoules per day on 95% of days and setting new daily production records of 70 TJ/day. This operational consistency was complemented by regulatory approval to increase pipeline flow rates, allowing trials to push production beyond the plant’s nameplate capacity of 68 TJ/day.
Financial Strength and Market Position
On the financial front, Amplitude Energy posted record quarterly revenue of $71.6 million, reflecting a 2% rise quarter-on-quarter. This was supported by an average realised gas price of $10.32 per gigajoule, which is set to increase by around 20% in the next quarter due to contract price indexation and new agreements.
Crucially, the company has dramatically improved its balance sheet, reducing net debt by 85% to $34.2 million. This was achieved through strong organic cash generation and the successful settlement of an equity raising in October 2025. With cash reserves at $81 million and a fully available $480 million reserves-based loan facility, Amplitude Energy is well-positioned to fund upcoming projects.
East Coast Supply Project Advances
The East Coast Supply Project (ECSP) is a key growth driver, with drilling activities commencing imminently following the arrival of the Transocean Equinox rig. The project targets multiple high-potential prospects, including Elanora, Isabella, and Nestor, supported by strong seismic data and recent regional discoveries.
Engineering and procurement for the ECSP development phase are nearing completion, with a final investment decision expected in the third quarter of FY26. The company is actively negotiating foundation gas contracts, aiming for first gas production by calendar year 2028. Funding for the project will come from existing cash, organic cash flow, and the company’s debt facility.
Strategic Moves and Future Outlook
Amplitude Energy is also progressing the Patricia Baleen Restart Project, which could restart production from existing wells and potentially enable gas storage. Additionally, the company has agreed to exit certain Onshore Otway Basin interests, streamlining its portfolio to focus on higher-value assets.
Looking ahead, the company’s ability to maintain operational excellence, capitalise on rising gas prices, and execute its development projects will be critical. The strong quarterly results and balance sheet improvements provide a solid foundation for these ambitions.
Bottom Line?
Amplitude Energy’s record-breaking quarter and ECSP drilling launch set the stage for a pivotal year ahead.
Questions in the middle?
- Will the East Coast Supply Project meet its targeted first gas date in 2028?
- How will rising gas prices impact Amplitude Energy’s revenue and margins in coming quarters?
- What are the implications of exiting Onshore Otway Basin interests for the company’s long-term strategy?
