Amplify Energy Corp.

Today and welcome to Amplify Energy's first quarter 2024 investor conference call. Amplify's operating financial results were released yesterday after market close on May 8, 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 May 23, 2024, by dialing 800-654-1563 and then entering access code 592-40315. I would now like to turn the conference over to Jim Frew, Senior Vice President and Chief Financial Officer of Amplify Energy Corp. Please go ahead.

Good morning, and welcome to the Amplify Energy conference call to discuss operating and financial results for the first quarter of 2024. 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 review our first 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 first quarter operational performance. Following that, I will discuss first 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 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 first quarter of 2024. The company generated $24.9 million of adjusted EBITDA and $2.3 million of free cash flow during the quarter, with both exceeding expectations. Due to our stronger than expected first quarter performance, combined with higher forecasted crude oil prices for the remainder of 2024, we have increased our annual guidance. You can find our updated guidance in our earnings release and investor presentation posted to our website last night. With respect to the strategic initiatives highlighted on our previous calls, the barrel marketing process is progressing as expected. As a reminder, we are exploring complete divestiture of the asset, as well as considering alternative financing structures with the goal of maximizing shareholder value. A successful bearable monetization will accelerate our ability to reduce debt outstanding and to evaluate return of capital options. We will provide an update regarding this process on our next call. At Beta, we continue to make progress on our 2024 development program. Dan will provide more details in a moment, but we remain encouraged about the potential of the program, especially in light of current crude oil prices. Our initiatives at both barrel and beta have the potential to demonstrate the significant upside of our assets that we believe is not currently fully valued. With respect to other initiatives, Amplify has been working hard to put a more robust insurance program in place to enhance our overall risk mitigation plan. A key part of that program was replacing our prior surety bonds. As a result of taking this holistic approach to our insurance program, we were able to successfully restructure our sinking fund obligations, which will lower our annual payments by approximately $7 million per year. Also of note, Amplify recently renegotiated its pre-existing iodine contracts in Oklahoma. We provide produced water to a third party for iodine extraction from the brine stream and are paid a royalty on the iodine produced. Starting in the second quarter, but effective as of January 1, 2024, Amplify will start realizing higher revenue from this partnership. Based on current iodine prices, we expect to generate an additional $2 to $3 million per year in iodine royalties, which are captured as other revenue in our updated guidance. In summary, we continue to focus on optimizing cash flow generation while simultaneously pursuing our strategic initiatives 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'll hand it over to Dan.