Amplify Energy Corp.

Please stand by. Your program is about to begin. If you need assistance during your conference today, please press star zero. Welcome to Amplify Energy's third quarter 2023 investor conference call. Amplify's operating and financial results were released yesterday after market close on November 6th, 2023 and are available on Amplify's website at www.amplifyenergy.com. 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 Tuesday, November 21st by dialing 800-654-1563 and then entering access code 101-908-45. I would now like to turn the conference call over to Jim Frew, Senior Vice President and Chief Financial Officer of Amplify Energy Corp.

Good morning, and welcome to the Amplify Energy conference call to discuss operating and financial results for the third quarter of 2023. 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. 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. For additional detailed disclosure, we encourage you to read our Form 10-Q, which was filed yesterday afternoon. Also, non-GAAP financial measures may be disclosed during this call. Reconciliations of those measures to comparable GAAP measures may be found in our earnings release or on our website at www.amplifyenergy.com. During the call, Martin Wilshire, Amplify's President and Chief Executive Officer, will provide an update regarding our strategic initiatives, our third quarter performance, and an update on our sustainability efforts. Next, Dan Furby, Senior Vice President and Chief Operating Officer will provide an overview of third quarter operational performance. Following that, I will discuss third quarter financial results, provide an update on our balance sheet and liquidity, and provide additional details on our hedge book. Finally, Martin will provide final thoughts before opening the call up for questions. With that, I hand it over to Martin.

Thank you, Jim. The restart of operations at beta and substantial reduction in debt outstanding have positioned Amplify to evaluate strategic opportunities focused on enhancing shareholder value. We are pleased to announce several near-term strategic initiatives in more detail today. First, the company has hired an investment banking firm to pursue a monetization of our oil-producing assets in Barrow, Wyoming. We are exploring a complete divestiture of the asset while also considering alternative structures with the goal of maximizing value for our shareholders. The marketing process will commence in the first quarter of 2024. Second, at Beta, we have conducted an in-depth technical review of the undeveloped potential in the field and will recommence the development program in the first half of 2024. Economics at current oil pricing are extremely attractive, with IRRs well in excess of 100% for wells that can be drilled and completed for approximately $5 to $6 million. The low variable cost nature of this asset allows us to add production with marginal increases in operating costs, greatly enhancing the profitability of the field. We expect that the development program, when combined with cost savings initiatives outlined on prior calls, and the low decline nature of wells in this heavy oil reservoir, to profitably extend the life of the asset. Lastly, we have also created a wholly owned subsidiary, Magnify Energy Services, which will provide a variety of oil field services to amplify operated wells. Beginning in East Texas and Oklahoma, Magnify is providing compression, well testing, and other well maintenance services. Over time, we may expand Magnify's capabilities into other service lines and operating areas. Magnify will improve the company's profitability by providing services a lower cost than current alternatives, while allowing the company to have greater access to and control over these critical services. We look forward to executing these strategic initiatives, which could further reduce leverage and potentially accelerate Amplify's ability to return capital to shareholders. Amplify's third quarter operational and financial results were in line with internal projections, including the impact of the planned barrel turnaround in September. Since restarting operations with Beta in late April, production volumes have continued to exceed initial projections, and the wells brought back online have experienced fewer complications than expected. As a result, production is higher and costs are lower than initially anticipated. In the third quarter, the company generated adjusted EBITDA of $19.5 million and free cash flow of $6.1 million. Yesterday, Amplify issued its inaugural sustainability report, which provides increased transparency to our stakeholders regarding our business and operating practices. This report details our safety procedures, environmental performance, efforts to enhance the long-term sustainability of our business, and dedication to sound corporate governance. We are committed to continuing to improve our disclosures and to providing updates on our sustainability milestones. With that, I will now turn it over to Dan to discuss operational highlights from the quarter. Thank you, Martin.