Amplify Energy Corp.

Welcome to Amplify Energy's fourth quarter 2024 investor conference call. Amplify's operating and financial results were released yesterday after market close on March 5th, 2025 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 20th, 2025 by dialing 800-654-1563 and then entering access code 71724906. A transcript and a recorded replay of the call will also be available on our website after the call. 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 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-K, which was filed yesterday afternoon, and our definitive proxy statement regarding the Juniper acquisition, which was filed on March 4th, 2025. Also, non-GAAP financial measures may be disclosed during this call. Reconciliations of those measures Comparable gap 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, including our announced transaction with Juniper, two recent deals in East Texas, and an overview of our activities at Beta. Next, Dan Furby, Senior Vice President and Chief Operating Officer, We'll provide an overview of fourth quarter operational performance and provide a preview of 2025 activities. 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 provide final thoughts before opening the call up for questions. With that, I will hand it over to Martin.

Thank you, Jim. I'd like to start with an update on our recently announced transaction with certain portfolio companies of Juniper Capital, discuss our recent Hainesville transactions in East Texas, and provide an update on our key development activity at Beta. On January 15, 2025, Amplify announced an interdisciplinary definitive merger agreement with privately held Juniper Capital to combine with certain of its portfolio companies owning oil-weighted assets and leasehold interests in the DJ and Powder River Basins. We are extremely excited about this deal, I believe it is an important step in our strategic development. The deal provides numerous benefits to the organization by increasing our scale and operating margins, expanding our inventory of attractive drilling locations, and providing us with a new core area for potential M&A activity. In regards to scale and upside, using flat pricing of $70 per barrel for oil and $3.50 for natural gas, year-end 2024 approved developed or reserved for these assets are 18 million barrels of oil equivalent with a PV10 value of approximately $335 million. And total crude reserves are 50 million barrels of oil equivalent with a combined PV10 value of $614 million. Amplify believes there is additional upside potential on the expansive acreage position, which is comprised of approximately 287,000 net acres and adjacent to some of the largest publicly traded U.S. oil companies. The Juniper transaction is also expected to provide substantial synergies from an overhead and tax perspective, with an expected G&A increase of approximately $1 million versus $7 to $8 million for the existing portfolio companies, and tax synergies from the stepped-up tax basis of the acquired companies. With the combined impact of the asset cash flows and deal synergies, we expect the transaction to be significantly accreted to free cash flow in 2025 and over a five-year time horizon. The large acreage position and operating footprint in these premier Rocky Mountain basins also provide the company with a new core area for future consolidation opportunities with the potential for creative bolt-on acquisitions from smaller private companies or non-core assets of larger operators. Additionally, the more broadly scaled pro forma asset base will afford amplified flexibility to consider portfolio rationalization opportunities to improve operational focus and manage cash flow. Finally, the transaction has the added benefit bringing on a new long-term partner in Juniper Capital, who has demonstrated a strong track record of delivering substantial value to their stakeholders. We anticipate the Juniper transaction will close in the second quarter of 2025. In addition to the Juniper transaction, the Amplify team has recently closed on two separate transactions in East Texas, allowing the company to bring forward value associated with our Hainesville acreage. Between the two transactions, Amplify generated $7.6 million in net proceeds, while retaining an overriding royalty interest in the properties with a 10% non-operated working interest in future development. We believe the acreage conveyed has over 30 undeveloped tangible locations with compelling economics. Although smaller in scope, these deals demonstrate management's commitment to creatively realizing value associated with our more mature assets. At Beta, we intend to build off the successes of the 2024 development program. The first two wells we brought online, the A50 and the C59, continued to perform above our pre-drill type curves with IRRs in excess of 100%. Based on this success, we were able to add 23 additional PUD locations to our year-end reserves with a PV10 value of approximately $180 million at a $70 flat WTI price for oil. In 2025, we plan to complete six additional beta wells, which includes the C48 and the A45 that were deferred from the 2024 program. While we are currently planning for five wells per year in 2026 and beyond, with continued success from the 2025 program, we will have the flexibility to accelerate drilling in future years to capture incremental value from this enormous resource. In summary, our accomplishments in 2024 have provided a strong foundation for the future success of Amplify, and we intend to build up that success with our strategic initiatives for 2025. The completion of the Juniper transaction will provide substantial upside in scale to the organization, and complement the outstanding development potential of the beta asset. We also intend to remain focused on maximizing the value of our existing asset base through our creative capital projects, cost reduction efforts, and the evaluation of portfolio optimization opportunities. With that, I will hand it over to Dan. Thank you, Martin.