Amplify Energy stock rating reiterated at Buy by Benchmark on asset sales

Published 03/07/2025, 13:58
Amplify Energy stock rating reiterated at Buy by Benchmark on asset sales

Investing.com - Benchmark has reiterated its Buy rating and $11.00 price target on Amplify Energy Corp. (NYSE:AMPY), representing over 230% upside from the current price of $3.29. According to InvestingPro data, the stock trades at a notably low Price/Book ratio of 0.33x, suggesting potential undervaluation despite the company’s strategic non-core asset sales and debt reduction plans.

The research firm highlighted Amplify’s sale of Eagle Ford non-operated production as a positive development that addresses multiple strategic objectives for the company.

Benchmark noted that these moves should relieve investor concerns about potential acquisitions, leverage issues, and dilution of the company’s Beta field potential.

The firm expects Amplify Energy to revise its production and capital expenditure guidance in August, providing updated financial projections following these strategic changes.

Results from Amplify’s next Beta well are anticipated this quarter, which could provide additional data on the offshore California development that Benchmark views as an important growth driver for the company.

In other recent news, Amplify Energy Corp has reported significant developments impacting its operations and financial standing. The company announced a substantial earnings per share (EPS) of $3.8 for the first quarter of 2025, which far exceeded the forecasted $0.21. Despite a net loss of $5.9 million, Amplify Energy showed improvement from the previous quarter’s $7.4 million loss. Additionally, Amplify Energy has completed the sale of its non-operated Eagle Ford assets to Murphy Exploration & Production Company for $23 million. The proceeds from this transaction are intended to reduce debt and enhance the company’s liquidity. Amplify Energy is also considering reinstating previously deferred high-return development wells at its Beta field. The company plans to provide updated full-year guidance with its second-quarter operating and financial results. These recent developments reflect Amplify Energy’s strategic focus on debt reduction and operational optimization.

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