AMPY - Amplify Energy: With Upside Catalysts An Ideal Buying Opportunity Has Emerged In This $5 Oil Stock
2024-02-08 15:31:55 ET
Summary
- Amplify Energy is not a well-known oil stock but it might get more attention from investors in 2024, due to a potentially major asset sale and continued de-risking.
- This stock is very undervalued and trades for just over 4 times earnings estimates for 2024.
- With management making moves to monetize Bairoil assets, it could be a catalyst whereby debt could be dramatically reduced and share buybacks and a dividend could be implemented.
- Amplify Energy's Investor presentation makes a case for a valuation at $18 per share, which is a level it has traded at in the past.
Amplify Energy Corp. ( AMPY ) is a producer of oil and natural gas. It is based in Houston, Texas and has operations in Oklahoma, Southern California, Texas, and it has stakes such as Bairoil in the Rocky Mountains which it is (imminently) planning to put up for sale in Q1 of 2024. This stock traded in the $20 per share range in 2017 and 2018 but trended down from there and plunged in 2020 due to the Covid stock market correction and remained weak due to a 2021 oil spill. The oil spill occurred when a ship (anchor) hit a pipeline. The shipping companies agreed to settle the case by paying $96.5 million to Amplify Energy. The company now seems on track to create shareholder value by de-risking the balance sheet, returning capital and monetizing assets which could serve as upside catalysts....
Amplify Energy: With Upside Catalysts, An Ideal Buying Opportunity Has Emerged In This $5 Oil Stock