 HOUSTON, Aug. 05, 2020 GLOBE NEWSWIRE -- Amplify Energy Corp. NYSE: AMPY Amplify or the Company announced today its operating and financial results for the second quarter of 2020 and provided an update regarding its liquidity enhancement initiatives announced in the first quarter of 2020 earnings press release. Key Highlights Update on Liquidity Enhancement Initiatives: Reduced operating expenses quarter-over-quarter by approximately 8 million, exceeding original expectations of 4 to 5 million Reduced recurring cash general and administrative GA expenses quarter-over-quarter by approximately 2.5 million Reduced 2020 capital spending plan by more than 8 million and expects full year capital spend of approximately 28 million Finalized Beta royalty relief process that is expected to generate approximately 7 million per year of incremental revenue assuming a 40Bbl WTI price During the second quarter of 2020 the Company generated: Daily production of 27.7 MBoed Net cash provided by operating activities of 29.9 million Adjusted EBITDA of 21.3 million Free Cash Flow of 11.1 million Current mark-to-market hedge book value of 25 million as of July 31, 2020 As of July 31, 2020, net debt was 259 million, inclusive of 16 million of cash on handDespite the ongoing issues related to COVID-19, Amplify turned out an excellent quarter by focusing on the execution of our liquidity enhancement initiatives and operational performance of our long life, low-decline assets, said Martyn Willsher, Interim Chief Executive Officer and Chief Financial Officer of Amplify. Among the many highlights from this quarter were the overachievement of our liquidity initiatives, which included significant overhead and operating cost reductions, the finalization of our royalty relief process in California and the successful redetermination of our revolving credit facility that provides a supportive borrowing base solution. These results were only possible due to relentless effort from our team, and Im very proud of our employees for their continued dedication throughout this difficult time. Liquidity Enhancement Initiatives UpdateOperating Cost and Corporate Overhead Reductions Amplifys lease operating expenses were reduced from 35.7 million in the first quarter to 27.8 million in the second quarter. The quarter-over-quarter savings of 7.9 million exceeded internal expectations of 4 to 5 million for the quarter and were accomplished due to outstanding execution by Amplifys employees. While the Company anticipates that a portion of these cost reductions are non-recurring, the Company remains committed to identifying and executing on incremental operational savings initiatives and expects to continue exceeding original estimates.Additionally, Amplify reduced recurring cash GA spending from 8.7 million in the first quarter to 6.2 million in the second quarter, which was in line with expectations. Amplify expects GA spending to continue to trend down in the third quarter and beyond. Capital Reductions Capital spending during the second quarter was 7 million, which was in line with the Companys expectations and represented a 8 million reduction from the first quarter. Amplifys remaining capital expenditure budget for the second half of 2020 is approximately 6 million. Amplifys remaining capital activity is focused principally on maintenance projects, which are essential to equipment integrity and operational efficiency, in addition to high rate of return workover projects.Beta Field Royalty Relief As anticipated, Amplify successfully qualified for royalty relief at its Beta field effective July 1, 2020. Amplifys royalty rate at Beta decreased by 50, which resulted in increased net production of approximately 500 Bblsd and additional revenue of approximately 7 million per year assuming a 40Bbl WTI price. Notably, this royalty relief program provides relief for both existing production and incremental production in the future when economic conditions allow for additional development.Key Financial Results Second Quarter First Quarter Average daily production MBoed 27.7 29.7 Total revenues 35.258.1 Total assets 453.7507.1 Net loss 1 0.0367.2 Adjusted EBITDA a non-GAAP financial measure 21.317.2 Net debt 2 272.3288.1 Net cash provided by operating activities 29.913.1 Total capital 6.815.3 1. Net loss for first quarter driven by 455.0 million asset impairments 2. As of June 30, 2020 and March 31, 2020, respectivelyRevolving Credit Facility and Liquidity UpdateOn June 15, 2020, Amplify announced that it has completed the regularly scheduled redetermination of its revolving credit facility borrowing base and entered into an amendment to its credit agreement. The redetermination resulted in a revised borrowing base of 285 million effective June 12, 2020 with scheduled monthly reductions of 5 million until the borrowing base reaches 260 million on November 1, 2020. The Company expects the next regularly scheduled borrowing base redetermination to occur in November 2020.As of July 31, 2020, Amplify had total net debt of 259 million under its revolving credit facility with 21 million of available liquidity.Operations and Capital Spending Update During the second quarter of 2020, average daily production was approximately 27.7 MBoe. This result included reductions attributable to the annual Bairoil turnaround, temporary curtailment of Amplifys non-operated Eagle Ford assets and incremental offline wells in the Companys Oklahoma assets. At Bairoil, the annual plant turnaround was completed on time and on schedule in June, and the field has quickly returned to pre-turnaround production levels in July. The non-operated Eagle Ford curtailment mentioned on the Companys last earnings call concluded after April and production has since returned as expected in that area. Finally, Oklahoma production fell in the second quarter, as the backlog of wells offline increased as prices remained depressed. Amplify expects to bring many of these wells back online in future periods as prices continue to slowly rebound and workover economics improve.Amplifys capital spending for the second quarter of 2020 was approximately 7 million which was in line with internal expectation and puts the Company on track for an estimated second half 2020 budget of 6 million. Of the 7 million spent in the second quarter, a significant portion 2 million or 29 was attributed to the Companys Eagle Ford assets and was utilized for non-operated drilling and completion activity. The remainder was primarily related to the Bairoil turnaround, along with capital workover and facility maintenance projects across other operated areas.Hedging UpdateSince Amplifys previous hedge update on May 6, 2020, the Company has made additions to its natural gas hedge position in second half of 2020 and 2022, as well as NGL swaps in the second half of 2020. As of July 31, 2020, Amplifys mark-to-market value of its commodity and interest rate hedge book remained a net asset position of 25 million.The following table reflects the hedged volumes under Amplifys commodity derivative contracts and the average fixed or floor prices at which production is hedged for July 2020 through December 2022, as of August 5, 2020.Amplify Energy Corp. Summary Commodity Hedge Position August 5, 2020 2020 2021 2022 Natural Gas Swaps: Average Monthly Volume MMBtu 1,450,000 925,000 500,000 Weighted Average Fixed Price 2.26 2.49 2.45 Natural Gas Collars: Two-way collars Average Monthly Volume MMBtu 420,000 925,000 200,000 Weighted Average Floor Price 2.60 2.10 2.10 Weighted Average Ceiling Price 2.88 3.28 2.99 Natural Gas Basis Swaps: Average Monthly Volume MMBtu 600,000 500,000 - Weighted Average Spread 0.46 0.40 - Oil Swaps: Average Monthly Volume Bbls 199,300 33,750 30,000 Weighted Average Fixed Price 57.41 56.57 55.32 Oil Collars: Two-way collars Average Monthly Volume Bbls 14,300 - - Weighted Average Floor Price 55.00 - - Weighted Average Ceiling Price 62.10 - - Three-way collars Average Monthly Volume Bbls 30,500 - - Weighted Average Ceiling Price 65.75 - - Weighted Average Floor Price 50.00 - - Weighted Average Sub-Floor Price 40.00 - - NGL Swaps: Average Monthly Volume Bbls 111,450 22,800 - Weighted Average Fixed Price 21.99 24.25 - Amplify posted an updated hedge presentation containing additional information on its website, under the Investor Relations section.Quarterly Report on Form 10-Q Amplifys financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, which Amplify expects to file with the Securities and Exchange Commission on August 5, 2020.Conference CallAmplify will host an investor teleconference today at 10:00 a.m. Central Time to discuss these operating and financial results. Interested parties may join the webcast by visiting Amplifys website, and clicking on the webcast link or by dialing 833 883-4379 at least 15 minutes before the call begins and providing the Conference ID: 4185547. The webcast and a telephonic replay will be available for fourteen days following the call and may be accessed by visiting Amplifys website, or by dialing 855 859-2056 and providing the Conference ID: 4185547. 