Amplify Energy (AMPY) is a Zacks Rank #2 (Buy) that has an A for Value and an A for Growth.  This company is in the oil and gas exploration and production market.  The company has operations in the Rockies, offshore California and a few other locations. Let’s explore more about this company in this Bull of The Day article.

Description

Amplify Energy Corp. is an independent oil and natural gas company, which engages in the acquisition, development, exploration, and production of oil and natural gas properties. It focuses on operations in Oklahoma, the Rockies, offshore Southern California, East Texas and North Louisiana, and Eagle Ford. The company was founded in 2011 and is headquartered in Houston, TX.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

The earnings history is bumpy to say the least.  The most recent quarter was a huge miss but it was preceded by an even larger beat. 

Four quarters ago was a big beat but it was followed by an even bigger miss.

So the beat, miss, beat miss pattern is in effect, but the size of the misses and beats is very big.  The smallest miss was the most recent quarter with a -204% while the smallest beat was 242%.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Estimates are moving higher for Amplify Energy.

Estimates are up sharply over the last 30 days and the fact that there wasn’t an estimate for the 2025 year is the only reason that this stock is not a Zacks Rank #1 (Strong Buy).

This quarter has moved up from 25 cents to 34 cents.

Next quarter is up from 34 cents to 39 cents.

The full year 2024 has increased from $1.15 to $1.35.

Next year is at $1.60 and has not moved since its inception at some point over the last 30 days.

Growth

The company has met the topline estimate in the most recent quarter, breaking a streak of at least six quarters that saw the topline beat the number.

For 2024 the company is expected to show 5.8% growth and that accelerates to 8.6%.

Valuation

The forward PE is 5.6x and that is super low.  Price to book is at 0.8x which means you can buy the stock at a 20% discount to the assets on the books.

Margins are looking good with the Zacks site showing 12% moving to 10%... which is not good but the June quarter which is not shown on the site is at 14%.  Gross margins are at 33%. 

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