Amplitude Energy's Cash Flow Outlook to Please Investors
Dow Jones
2 hours ago
2302 GMT [Dow Jones]--Investors are likely to become more bullish about Amplitude Energy's cash flow outlook as the East Coast Supply Project advances, signals Ord Minnett. Amplitude's decision to proceed with the ECSP follows success with the Juliet-1 well. Analyst Tim Elder views Amplitude's plan to drill the Nestor prospect as a sound decision because it makes best use of the available Transocean Equinox rig. The developments materially derisk Ord Minnett's forecast for 57% production growth by FY30. "We expect this should encourage investors to look more favorably on Amplitude's capacity to significantly grow free cash flow by FY29-30, even if there are some near-term risks to exploration (i.e. Nestor) and net debt will increase to A$300 million in FY27," Ord Minnett says.
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