Amplitude Energy Posts 17% Production Growth and $174 Million EBITDAX in FY25

Record Production and Financial Performance

Amplitude Energy Limited (ASX, AEL) has reported a landmark year for FY25, posting record production volumes and financial results. The company’s gas and oil output rose 17% to 26.6 petajoules equivalent, while revenue increased 22% to $268.1 million. Underlying EBITDAX surged 36% to $173.9 million, reflecting a robust 65% margin. These figures underscore Amplitude’s operational strength and strategic positioning in the tight Australian east coast gas market.

The Orbost Gas Processing Plant (OGPP) was a standout performer, operating at its nameplate capacity of 68 TJ per day in June and sustaining high reliability throughout the year. This turnaround follows years of production challenges, with engineering upgrades and process improvements driving a 24.9% increase in gas production at the Gippsland Basin facility. The company is now pursuing regulatory approvals to push OGPP’s capacity even higher.

Strategic Joint Venture Accelerates East Coast Supply Project

A major highlight of FY25 was the formation of a 50/50 joint venture with O.G. Energy to develop the East Coast Supply Project (ECSP) in the Offshore Otway Basin. This partnership brings shared funding responsibilities and aligns interests for the project’s exploration and development phases. Preparations are underway for a three-well drilling campaign starting with the Elanora well in Q2 FY26, supported by front-end engineering and design activities.

The ECSP aims to backfill the Athena Gas Plant with up to 90 TJ per day of new gas supply by 2028, contingent on exploration success and regulatory approvals. The joint venture’s progress, including securing key environmental and project approvals, positions Amplitude Energy as a critical supplier to the domestic east coast gas market amid tightening supply conditions.

Operational Efficiency and Cost Discipline

Amplitude Energy’s continuous improvement program delivered approximately $20 million in cashflow enhancements during FY25, driven largely by operational efficiencies at OGPP and gas marketing initiatives. General and administrative expenses were reduced by $2.8 million to $11.7 million, reinforcing the company’s disciplined cost management approach. The company also commercialised sulphur by-product from OGPP as a soil additive, exemplifying innovative resource utilisation.

Despite inflationary pressures, production expenses rose modestly by 4.9% but decreased on a unit cost basis, reflecting improved operational leverage. Capital expenditure for FY25 was $64.1 million, primarily allocated to ECSP development, with O.G. Energy reimbursing half of prior and future project costs under the joint venture agreement.

Outlook and Guidance for FY26

Looking ahead, Amplitude Energy expects sustained strong production of 69 to 74 TJ per day in FY26, supported by further growth at OGPP offsetting natural declines elsewhere. Production costs are forecast between $54 million and $60 million, with capital expenditure guidance of $125 million to $150 million largely focused on ECSP activities. The company also anticipates non-recurring pipeline inspection costs and significantly reduced restoration payments compared to FY25.

Managing Director and CEO Jane Norman emphasised the company’s momentum, stating that the combination of operational improvements, strategic partnerships, and disciplined cost control sets a solid foundation for growth and value creation in the coming years.