Highlights

  • Amplitude Energy (ASX:AEL) reported record FY26 group production of 27.6 petajoules equivalent and record sales Revenue of $285.8 million.
  • Orbost Gas Processing Plant throughput averaged 73.2 terajoules a day during FY26 and peaked at 74.7 TJ/day.
  • Net Debt had fallen to $34.2 million at 31 December 2025, supported by the $150 million Equity raising and operating cash flow.
  • The East Coast Supply Project targets up to 90 TJ/day of new Otway Basin gas from 2028, with a final Investment decision targeted for Q1 FY27.

For a company that spent years defined by a troublesome gas plant and a heavy debt load, Amplitude Energy (ASX:AEL) is closing out the 2026 financial year with an unfamiliar problem: what to do with a repaired balance sheet. The Adelaide-based producer, rebranded from Cooper Energy in November 2024, told the market it had pushed group production to a record 27.6 petajoules equivalent in FY26 while slashing net debt by 85 per cent inside a single half. The deleveraging, funded partly by a $150 million equity raising and partly by cash generation, gives management greater capacity to consider its next east-coast supply project. It also arrives as the board searches for a new chairman.

Latest Development

The headline operational number came in Amplitude Energy's most recent quarterly update, released on 22 July 2026, which confirmed record full-year group production of 27.6 PJe and record sales revenue of $285.8 million, up 7 per cent on FY25. The Orbost Gas Processing Plant in Gippsland — long the company's Achilles heel — averaged 73.2 terajoules a day across the year and peaked at 74.7 TJ/day in July, exceeding its 70 TJ/day nameplate. That is a 65 per cent lift in throughput since May 2023, when the plant managed just 47.1 TJ/day. Downtime tied to the plant's sulphur-removal system fell from 390 hours in FY23 to 128 hours in FY26, evidence that the reliability measures have continued to reduce disruption.

What the Numbers Show

The balance-sheet turnaround is the more notable story. Net debt fell to $34.2 million at 31 December 2025, an 85 per cent reduction from $229.0 million three months earlier, according to the company's second-quarter report. That deleveraging was driven by the October 2025 settlement of a $150 million institutional Placement and entitlement offer, combined with organic cash flow at Orbost. For context, Amplitude Energy (ASX:AEL) carried net debt of $243.0 million and drawn debt of $305.2 million at the close of FY25, so the group had shed much of its gearing within six months. Cash stood at roughly $81 million at the December balance date. On the Earnings side, FY25 delivered underlying Earnings Before Interest, Tax, Depreciation, Amortisation and Exploration (EBITDAX) of $173.9 million and Underlying Profit after tax of $11.4 million, though a statutory net loss of $41.3 million underscored how non-cash items continued to affect the reported result.

Why It Matters

Debt has been the single biggest constraint on Amplitude Energy's ambitions. With Orbost now running more reliably and gearing largely reduced, the company can assess a final investment decision on new supply with greater balance-sheet capacity. That matters in the east-coast gas market, where expected supply constraints from 2028 are linked to declining production from legacy sources. Amplitude Energy sells into that market, and an average realised price of $10.35 a gigajoule in FY26 — up 4 per cent year on year — shows the revenue environment available to the producer. The key question is whether the repaired Balance Sheet can now support growth without returning the company to its previous level of financial leverage.

Growth Catalysts

The centrepiece is the East Coast Supply Project in the offshore Otway Basin, being progressed through a joint venture with O.G. Energy. The development targets up to 90 TJ/day of new gas through the existing Athena Gas Plant from 2028 — enough, on the company's figures, to supply more than 600,000 Victorian homes — with a three-well drilling program already board-approved and a final investment decision targeted for the first quarter of FY27. Supporting moves are stacking up around it: Amplitude Energy agreed to acquire a 50 per cent interest in the Artisan gas field from Beach Energy in a deal valued at about $58.3 million, secured a production licence over the Annie field, and flagged the imminent start of drilling at Juliet. Commercialising the Patricia Baleen asset adds a further optionality layer.

Risks Investors Should Watch

The turnaround is not without caveats. Much of the debt reduction leaned on the October equity raising, which diluted existing holders — the deleveraging is real, but it was not achieved by cash flow alone. A final investment decision on the East Coast Supply Project also commits fresh Capital just as the balance sheet has been repaired, and offshore drilling carries reservoir, cost and schedule risk that has affected Amplitude Energy in the past. Orbost's reliability, while improved, remains critical to group production. Gas prices are also exposed to policy intervention, including the Commonwealth's code of conduct and price mechanisms. Amplitude Energy (ASX:AEL) was also awaiting its audited FY26 financial results at the time of writing, with results due on 18 August 2026.

What Happens Next

Two dates frame the near term. The FY26 results webcast on 18 August 2026 will confirm the full-year financials and, critically, an updated net debt position and FY27 guidance. Beyond that, the East Coast Supply Project decision in the first quarter of FY27 is the swing Factor for the growth thesis — a positive FID would lock in the pipeline of new Otway gas. Overhanging both is the board transition: Ian Davies, who became chairman on 6 November 2025 after succeeding John Conde, has signalled his intention to retire ahead of the 2026 annual meeting, and a search for his replacement is under way.

Conclusion

Amplitude Energy (ASX:AEL) enters FY27 in materially different financial and operational circumstances from the period when Orbost reliability and debt were its primary constraints, with record output, higher plant throughput and a substantially lower net debt position. The deleveraging story is genuine, if partly equity-funded, and it gives the company greater balance-sheet room to consider new supply projects in the east-coast market. Yet the same balance sheet is about to be tested by a fresh capital decision, the growth projects still carry execution risk, and the board is again looking for a chairman. The FY26 accounts and the Otway FID will show whether Amplitude can convert its improved position into the next phase of gas supply growth.