Highlights

  • FY26 production increased 3.5% to a record 27.6 PJe, while Revenue rose 7% to $285.8 million.
  • Underlying EBITDAX increased 12% to $191.8 million, and adjusted cash from operations rose 19% to $191.0 million.
  • Underlying profit after tax increased to $45.0 million from $9.1 million, while reported loss after tax was $27.2 million.
  • Net Debt declined to $37.6 million as Amplitude Energy progresses the East Coast Supply Project and targets FY27 production of 26.6–28.5 PJe.

Amplitude Energy Limited (ASX:AEL) reported record FY26 production, revenue, underlying EBITDAX and adjusted cash from operations, supported by higher Gippsland Basin output and improvements at the Orbost Gas Processing Plant. Group production increased 3.5% to 27.6 PJe, or 75.5 TJe/d, while sales revenue increased 7% to $285.8 million.

The company also recorded a substantial increase in Underlying Profit after tax, which rose to $45.0 million from $9.1 million in FY25. However, reported profit remained negative, with a loss after tax of $27.2 million, largely due to the write-off of exploration costs associated with the Elanora and Isabella wells.

Production Reaches Record Level

Gippsland Basin production was a major contributor to the FY26 result. Gas production from the basin increased 7.2% to 24.3 PJ, equivalent to 66.5 TJ/d. The increase reflected higher Sole production, sulphur-processing improvements and capacity and debottlenecking work at the Orbost facility.

Orbost's previous nameplate capacity of 68 TJ/d was exceeded during FY26, with stable operations above 70 TJ/d when three sales-gas compressors were operating. A daily production record of 74.7 TJ was subsequently achieved, while the July 2026 monthly average reached 73.5 TJ/d.

Performance in the Otway Basin moved in the opposite direction. Production declined to 2.9 PJe, or 7.8 TJe/d net to Amplitude Energy's 50% interest, primarily because of natural field decline at Casino, Henry and Netherby and a planned offshore maintenance campaign.

Oil and condensate production from the Cooper Basin also declined 25.1% to 71.1 kbbl, or 195 bbl/d net to the company's 25% interest. Flooding and natural field decline were partly offset by new Callawonga wells.

Revenue and Earnings Increase

Revenue rose 7% to $285.8 million, supported by higher sales volumes and realised gas prices. The average realised gas price increased 5% to $10.36/GJ.

Underlying EBITDAX increased 12% to $191.8 million, with an underlying EBITDAX Margin of 67%. Production expenses declined to $57.0 million, while unit production costs fell to $2.07/GJe on a group basis.

Adjusted cash from operations increased 19% to $191.0 million. Operating Cash Flow increased 102% to $180.3 million, although Capital Expenditure reached $118.6 million during the year.

Restoration payments declined substantially, falling 83% to $10.5 million from FY25.

Balance Sheet and Capital Spending

Cash and cash equivalents increased to $137.5 million at 30 June 2026, while drawn debt declined to $175.2 million. Net debt fell to $37.6 million.

Amplitude Energy's FY27 capital expenditure guidance is $250 million to $310 million, excluding restoration expenditure and capitalised interest. The increase in planned spending reflects Investment in the East Coast Supply Project, including Juliet and Annie drilling and long-lead development costs.

The company expects to fund the ECSP investment through existing cash and organic cash generation over 2026–2028.

East Coast Supply Project

The East Coast Supply Project remains a central development program, targeting production from new offshore Otway Basin gas fields through the Athena Gas Plant in 2028.

During FY26, drilling at Elanora and Isabella produced mixed results. The Elanora Waarre A target was water-bearing, while a sidetrack at Isabella encountered gas-bearing sands but subsequent pressure readings did not support commercial development. The Isabella well was therefore plugged and abandoned.

The company is now preparing for Juliet exploration drilling, followed by the Annie development well. A final investment decision for the ECSP development phase is expected in Q1 FY27, with project budgets and timelines remaining unchanged and first gas targeted for calendar 2028.

FY27 Guidance

Amplitude Energy expects FY27 production of 26.6–28.5 PJe, broadly reflecting continued Gippsland Basin output alongside an OGPP maintenance shutdown and natural declines in several fields.

Production expenses are forecast at $58 million to $64 million, while other cash expenses and costs of sales are expected to be $27 million to $31 million. The company has guided FY27 capital expenditure to $250 million to $310 million.

Additional non-regular expenses include approximately $6 million to $7 million for an ERP replacement project and about $5 million for Patricia Baleen pipeline inspection costs.

Conclusion

Amplitude Energy's FY26 results show higher production, revenue, operating earnings and cash generation, with Gippsland Basin performance offsetting declines in the Otway and Cooper Basins. Underlying profit increased materially, while reported earnings remained negative because of exploration write-offs. The Balance Sheet also improved as net debt fell to $37.6 million. Looking ahead, FY27 combines production guidance of 26.6–28.5 PJe with substantially higher capital expenditure, largely connected to the East Coast Supply Project. The progress of Juliet and Annie drilling, the expected development decision and the timing of first gas will be important factors in the company's next phase of operations.