Amplitude Energy has opened FY27 with record quarterly production and revenue, while a successful Juliet gas discovery and East Coast Supply Project investment decision push its growth plan forward. The trade-off is higher spending, with FY27 capital expenditure guidance rising to A$320 million to A$390 million.
- Record Q1 FY27 production of 7.51 PJe
- Revenue rose 18% quarter on quarter to A$83.3 million
- Juliet gas discovery supports ECSP development plan
- Nestor well sanctioned at an estimated A$70 million to A$80 million net cost
- FY27 capital expenditure guidance increased to A$320 million to A$390 million
Record production strengthens Amplitude Energy’s starting position
Amplitude Energy Limited (ASX:AEL) has begun FY27 with its strongest quarter on record, producing 7.51 petajoules-equivalent and generating A$83.3 million in revenue for the three months to 30 September. Production rose 10% from the June quarter, while revenue climbed 18%, helped by higher volumes and an average realised gas price of A$10.69 per gigajoule.
The company’s core Gippsland operation did much of the heavy lifting. Gas processed through the Orbost Gas Processing Plant averaged 71.7 terajoules a day, with the plant operating above 68 TJ a day on 95% of days and above 70 TJ a day on 75% of days. Amplitude said it continues to pursue near-term debottlenecking, while a longer-term restart of the Patricia Baleen field could provide another source of Gippsland production.
Juliet discovery underpins ECSP development decision
The quarter’s more consequential development was offshore. The Juliet-1 well made what Amplitude described as a commercial gas discovery in the primary Waarre C reservoir, with preliminary data indicating high reservoir quality, high deliverability and gas composition suitable for blending with Annie and other East Coast Supply Project fields. The well was completed under budget and schedule, then suspended ready for a future tie-in, although reserve estimates and volumetric evaluation remain outstanding.
That result followed the Juliet-1 reservoir results, which had indicated strong reservoir characteristics but left flow rates and recoverable resources to be established. Amplitude has now taken final investment decision on the ECSP development phase, covering the discovered Annie, Juliet and, subject to completion of the acquisition, Artisan fields. The project continues to target first gas in calendar 2028 and gross production of up to approximately 90 TJ a day through the Athena Gas Plant for at least four years from start-up.
Nestor expands the opportunity and the spending bill
The ECSP joint venture has also sanctioned the Nestor exploration well, which will follow the Annie-2 development well in the current drilling campaign. Nestor is close to existing infrastructure and could be commercialised as early as 2028 if successful, but that outcome remains dependent on a commercial discovery, approvals and licence requirements. Amplitude’s 50% net cost for drilling and completion is expected to be A$70 million to A$80 million.
The decision lifts FY27 capital expenditure guidance to A$320 million to A$390 million from A$250 million to A$310 million. The company spent A$81.1 million in the September quarter, including A$67.2 million on exploration and appraisal, overwhelmingly in the Otway Basin. Management said development spending remains consistent with prior expectations and is expected to be funded from existing cash and operating cash flow, while roughly 70% of total ECSP capital expenditure is expected to be incurred by the end of the current drilling campaign.
Balance sheet remains modestly geared despite elevated capex
Amplitude ended September with A$144.2 million in cash and A$175.2 million in drawn debt, leaving net debt of A$31.0 million, down from A$37.7 million at the end of FY26. The reduction came despite the sharp increase in quarterly capital expenditure. Gas sales also benefited from 1.5 PJ of spot sales from surplus Sole production, with the company directing volumes towards periods and markets offering stronger prices.
The numbers make the ECSP’s next phase easier to finance, but they do not remove execution risk. Annie-2 operations are expected to finish by mid-November, Juliet reserve work is still in progress and Nestor now adds both potential production and another material call on capital. The Patricia Baleen restart has entered front-end engineering and design, with a final investment decision targeted for early 2027, adding a separate development milestone to the company’s growing pipeline.
Bottom Line?
Amplitude has entered FY27 with operating momentum and a stronger balance sheet, but the next test is whether ECSP drilling and development can convert that momentum into 2028 gas supply without eroding project returns.
Questions in the middle?
- What reserve and resource estimates will Amplitude ultimately assign to Juliet?
- Will Annie-2 and Nestor drilling remain within the expanded FY27 capital envelope?
- Can the ECSP achieve first gas in 2028 while Patricia Baleen and other projects compete for capital and execution capacity?