Amplitude Energy Reports Record FY26 Production and Earnings

Record Production and Earnings Highlight Operational Strength

Amplitude Energy (ASX:AEL) capped FY26 with a string of records: production rose 3% to 27.6 petajoules-equivalent (PJe), revenue climbed 7% to $285.8 million, and underlying EBITDAX surged 12% to $191.8 million, delivering a robust 67% margin. The Orbost Gas Processing Plant (OGPP) was central to this performance, with production exceeding its previous nameplate capacity of 68 terajoules per day (TJ/d) to operate stably above 70 TJ/d, setting a new daily record of 74.7 TJ in July 2026. This operational leverage and cost discipline drove unit production costs down to $2.07/GJ, well below prior years.

Meanwhile, the Otway Basin faced natural decline, partially offset by the return of the Casino-4 well, while oil production from the Cooper Basin dipped due to flooding and field decline. Despite these headwinds, Amplitude’s overall production guidance was met at the upper end, demonstrating resilience across its portfolio.

East Coast Supply Project Advances with Artisan Acquisition

The East Coast Supply Project (ECSP) remains the company’s transformational growth engine. Amplitude Energy secured a 50% interest in the discovered Artisan gas field from Beach Energy, a strategic move that consolidates resources alongside the Annie discovery to underpin ECSP economics. The Artisan acquisition, contingent on regulatory approvals and completion conditions, is expected to accelerate first production to 2028 by utilising existing Otway Basin infrastructure and the Athena Gas Plant (AGP).

Drilling activities progressed with the Transocean Equinox rig completing the Elanora and Isabella wells, which proved unsuccessful commercially. The focus now shifts to the imminent Juliet exploration well and the Annie development well, with a decision on the optional Nestor well pending. Front-end engineering and design (FEED) for the subsea development phase is complete, and a final investment decision (FID) is anticipated in Q1 FY27, targeting first gas by 2028.

Long-term gas sales agreements with EnergyAustralia and AGL, totaling 8.75 PJ per annum, provide a solid market foundation for the ECSP, contingent on drilling success and FID. Amplitude plans to fund the ECSP capex from existing cash reserves and organic cash flow, with FY27 capex guidance between $250 million and $310 million.

Balance Sheet Strength and Cash Flow Support Growth

Amplitude Energy’s balance sheet strengthened significantly, with net debt slashed by 85% to $37.6 million and cash reserves swelling to $137.5 million at 30 June 2026. Operating cash flow doubled year-on-year to $180.3 million, reflecting strong margin expansion and cost control. Adjusted cash from operations, which excludes restoration and non-recurring items, rose 19% to a record $191 million. The company’s reserve-based lending facility remains underutilised, providing ample liquidity to support growth initiatives.

Safety, Sustainability and Governance Highlights

Safety performance was exemplary, with no lost time injuries for over 2.5 years and a total recordable injury frequency rate (TRIFR) of 1.97, well below the industry benchmark of 6.00. Environmental stewardship continues, with no reportable incidents and a 36% reduction in operational flaring against a FY23 baseline, progressing toward a 40% reduction target by FY30. The company voluntarily offset 100% of its Scope 1 and 2 emissions with certified carbon credits and is advancing renewable energy projects, including a solar PV installation at AGP.

Board renewal continued with the retirement of Chairman John Conde AO and the appointment of Ian Davies as Chairman, alongside new independent directors Gillian Larkins and Matthew Ridolfi, enhancing governance with diverse expertise in finance, technical, and energy markets.

Executive Remuneration Aligned to Performance

Amplitude Energy’s executive remuneration framework remains tightly linked to company and individual performance. FY26 short-term incentives reflected strong operational and financial results, tempered by exploration setbacks at Elanora and Isabella. Long-term incentives are tied to relative and absolute total shareholder returns, reinforcing alignment with shareholder value creation. The Board approved enhancements to increase deferred equity participation from FY27, further strengthening this alignment.

Risks and Outlook

The company acknowledges typical industry risks including operational reliability, joint venture alignment, market volatility, regulatory changes, and climate-related transition and physical risks. These are actively managed through robust governance, risk frameworks, and scenario analysis. The company’s climate-related disclosures detail a comprehensive transition plan focused on emissions reduction, carbon offsetting, and demonstrating gas’s role in Australia’s energy future.

Looking ahead, FY27 guidance targets production between 26.6 and 28.5 PJe, with production expenses forecast at $58–64 million and capital expenditure between $250 million and $310 million. The focus remains on delivering the ECSP on schedule and budget, maximising asset utilisation, and growing margins through cost control and marketing initiatives.

Amplitude Energy’s trajectory is underpinned by operational discipline, strategic asset development, and a strengthened balance sheet, positioning it to meet growing domestic gas demand in southeastern Australia amid an evolving energy landscape.