Very strong rest of half-yearly results from Amplitude Energy (AEL - formerly Cooper Energy COE) this morning.
Just hopped off the half-yearly results webinar & analyst Q&A.
The reasonably new CEO Jane Norman & her team - are finally showing really tangible results of getting on top of a lot of the things that have been holding the company back for some years, most importantly of all the Orbost production issues (from Sole gas field) & plant bottlenecks/technical issues. The dramatically improved cashflow generation is really starting to show through in spades, and they should be able to make pretty short work of deleveraging their debt facility in coming periods, following having to draw heavily on their debt facility this past 12 months to carry out the BMG decommissioning works (major liability that has been weighing heavily on the company & its balance sheet - all works have now been completed & paid for, removing major impediment/risk for investor community).
Other big exciting news was looking very likely that OG Energy will imminently finalise agreement with Amplitude's long-term 50% JV partner Mitsui in the Otway Basin (Otway Basin gas fields & major Athena Gas Plant). This will likely now clear the way for Amplitude's long-envisioned & pursued major growth project ECSP (East Coast Supply Project) to move forwards, and much more likely now with the preferred 3 well program with a fully aligned, financial & motivated JV partner).
I think the Analysts who have long followed this long-term underperformer were likewise impressed, and I see pretty much all the pieces in place now for a steady positive SP re-rate, and steady closing of the valuation gap between their assets (2 major gas plants + multiple gas fields right by the SE Australian market which faces serious shortfalls in coming years due to years of VIC government virtue signalling over common sense).
Very positive on this one.
