Amplitude Energy (ASX:AEL) will likely report strong fiscal second-quarter results, driven by sustained improved production, increased guidance, and an expected reduction in net debt, Euroz Hartleys said in a Tuesday note.
The company's production rate at the Orbost gas processing plant has increased by 24% from a year eariler, leading the company to upgrade its group production guidance.
Euroz Harlteys expects the free cash flow generation due to strong production in the December 2024 quarter to result in a decrease in net debt, highlighting the company's ability to generate cash from operations.
Euroz Harlteys believes that the expected undersupply in the East Coast domestic gas market, coupled with the strong production, is likely to enhance investor appetite for the company.
Euroz Hartleys maintained its buy recommendation and price target of AU$0.33 on the stock.
Shares of Amplitude Energy rose past 1% in recent Wednesday trade.
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