Amplify Energy Corp.

Welcome to Amplify Energy's fourth quarter 2023 investor conference call. Amplify's operating and financial results were released yesterday after market close on March 6, 2024, 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 March 21, 2024, by dialing 800-654-1563 and then entering access code 282-40256. I would now like to turn the conference 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 fourth 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-K, 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 review our fourth quarter performance and provide an update regarding our previously announced strategic initiatives. Next, Dan Furby, Senior Vice President and Chief Operating Officer, will provide an overview of fourth quarter operational performance. Following that, I will discuss fourth quarter financial results, provide an update on our balance sheet and liquidity, and provide additional details on our hedge book. Finally, Martin will conclude our prepared remarks with comments regarding Amplify's 2024 guidance and provide final thoughts before opening the call up for questions. With that, I will hand it over to Martin.

Thank you, Jim. Amplify had a strong fourth quarter of 2023, capping off a successful and important year for the company. With respect to the fourth quarter, the company generated $25.2 million of adjusted EBITDA and $14.4 million of free cash flow, Fourth quarter production averaged 20,800 VOE per day, a 1% increase from the prior quarter, while LOE came in 7% lower than the prior quarter on a per VOE basis. For the year, Amplify generated $88 million of adjusted EBITDA and $38 million of free cash flow, which was in line with the company's 2023 guidance, despite steep declines in natural gas and NGL prices throughout the year. In 2023, the company also maturely improved its balance sheet, reducing net debt by approximately $95 million and establishing a new credit facility in the third quarter. Operationally, the company achieved average net production of 20,500 VOE per day for the year, successfully returned beta to production, and formed Magnify Energy Services to provide a variety of oil-filled services to amplify operated wells, reduce operating costs, and provide greater operating controls. I am extremely proud of the entire organization for the operational and financial progress we've made in 2023, and I expect the company to continue the positive momentum this year. With respect to the strategic initiatives highlighted last quarter, the company engaged an investment bank to pursue the monetization of our oil-producing assets in Barrow, Wyoming. As a reminder, we're exploring a complete divestiture of the asset, as well as considering alternative structures with the goal of maximizing shareholder value. A successful barrel monetization will accelerate our ability to reduce debt outstanding and evaluate return of capital options. We will provide an update regarding this process on our next call. At Beta, following an in-depth technical review of the undeveloped potential in the field, we are pursuing a full well development program in 2024, with the first well having been spud earlier this week. At current prices, the development program is forecast to generate attractive IRRs in excess of 100%, and payback periods of less than one year. The first two wells are scheduled to be in production in the second quarter, and we will provide updates to the market when the results are available. In summary, we continue to focus on optimizing cash flow generation while simultaneously pursuing our strategic initiative at Barrel and Beta. We believe this plan will unlock additional value in Amplify's portfolio and deliver substantial benefits and long-term value to our shareholders. With that, I will hand it over to Dan.