Amplify Energy Shares Fall in Heavy Trading Monday, Amplify Energy Corp. is an independent oil and natural gas company that focuses on the acquisition, development, and exploitation of oil and gas properties in the Rockies, Eagle Ford, and East Texas/North Louisiana. Shares surged during the last session, but fell in heavy trading. The company has focused on exploration and development in these areas. It also has an interest in offshore fields, such as the federal waters off the coast of Southern California.
Shares surged in the last session
Amplify Energy Corp. (NYSE: AXL) is a Houston-based oil-and-gas company with interests in developing and acquiring oil properties in the United States. Shares of the company plunged after news of a spill in the Orange County area. The company stated that it was doing everything possible to limit the damage caused by the spill, which extended six miles. The company’s shares, however, surged in the last session after officials outlined a plan to clean up the spill.
While Amplify Energy’s (AMPY) stock has experienced a surge in the last trading session, it is still undervalued in the eyes of investors. The stock’s recent gains are largely due to the fact that trading volume was higher than average. Amplify’s earnings outlook has remained unchanged over the last 30 days, so a stock’s price is likely to move up without a significant revision in the near term.
Despite the recent stock market rally, small investors are taking action as well. By putting pressure on Wall Street, millions of small investors are putting pressure on big companies to move up their stock prices. Amplify Energy Corp. (NYSE:AMPY) shares soared by more than 1,700 percent during the last session. These investors include a real estate agent in Valparaiso, Ind., a former line cook from the Bronx, and a husband-wife evangelical pastor in Huntington Beach, Calif.
Shares plunged in heavy trading
Amplify Energy Corp. shares plunged 59.1% in heavy trading Monday. The company was rebranded as Memorial Energy Corp. after spilling over 126,000 gallons of crude oil on the ocean. Its recent trend of raising its earnings estimate is a positive sign, but it’s unlikely to translate into an increase in price in the near term. A drop of this magnitude would be considered a bear market.
The company recently reported a spill that could cost the company millions of dollars. Earlier this week, it revealed it had spent $1.7 million to expand operations in the region. The spill was discovered in August and has spread across 13 square miles of the Pacific Ocean. While Amplify has yet to disclose any details of the spill, investors should consider that the company has an oil spill investigation underway and has shut down its processing facility.
As of Friday afternoon, Amplify is still investigating the cause of the oil spill in the coastal area of California. The company owns three oil platforms off the coast of California. The rigs were installed between 1980 and 1984. The pipeline transports the oil from the processing platform to an onshore facility in Long Beach. A rupture in a 16-inch pipeline, about four miles from the platform, has been blamed for the spill. The company was already paying millions for other projects that were sidetracked as a result of the spill.
The oil & gas industry is in an interesting position. Although it’s becoming commoditized, oil & gas still has substantial value. Amplify is undervalued and trading at a discount to its industry. The company’s underlying operational performance has improved in recent years and its forward PE multiple is only 2.15, which is significantly below the industry average. Amplify’s current cheap valuation is a hot commodity that should continue to rise.
Operations focused in the Rockies / North Louisiana / Eagle Ford
Amplify Energy Corp. is an independent oil and gas company engaged in the acquisition, exploration, and production of oil and natural gas properties. The company has operations in Oklahoma, the federal waters offshore Southern California, and East Texas / North Louisiana and the Eagle Ford formations. In recent years, the company has expanded its operations in these regions, including in the Permian Basin in western Oklahoma.
The Company’s operating strategy focuses on managing production through a targeted workover program and on a stable free cash flow profile. The company intends to use new technologies and targeted workover activities to reduce future operating expenses and minimize downtime. It expects to ramp up the workover program in the fourth quarter and bring additional wells online during 2022. Regulatory approvals are the company’s top priority.
Amplify is planning to participate in the 2022 Louisiana Energy Conference. The company will hold a conference on Thursday, June 2(nd), at the Ritz-Carlton Hotel in New Orleans. The company intends to attend the conference in June and update its guidance for the next three years. The conference is open to the public, so investors should plan their trip accordingly.
The Company’s first quarter 2019 results were mixed, as the Company paid nearly $10 million in taxes, despite the lower oil price. The company also paid $17.5 million in LOPI during the first quarter, which is more than double the company spent during the same period last year. The company will continue to incur expenses related to natural gas gathering and processing in these areas until Beta returns to full production.
Amplify’s non-GAAP financial measures, free cash flow and net debt, should be viewed in conjunction with GAAP financial measures. They may not be comparable to similarly-titled measures of other companies. In addition, Amplify’s non-GAAP financial measures are not intended to replace the results of GAAP financial measures. They may not be comparable to the information provided by other companies. We continue to produce content for you. You can search through the Google search engine.