Amplitude Energy (AEL: ASX) has revised its FY25 production guidance upwards to 69-73 TJe/day, an increase from the previous 65-72 TJe/day. This positive adjustment stems primarily from the enhanced operational efficiency of the Orbost Gas Processing Plant (OGPP). According to Amplitude Energy, modifications made to the plant have enabled it to consistently operate at or near its nameplate capacity. This strong performance allows the company to capitalize on the tight East Coast gas market through spot sales, thereby maximizing margins and cash flow. The company’s FY25 production expenses are projected to remain within the $55-63 million range. Capital expenditure (capex) is also tracking within the guided $50-60 million range, encompassing Amplitude Energy’s share of long-lead item procurement for the East Coast Supply Project (ECSP). This range factors in the anticipated reimbursement of 50% of historical FY25 ECSP costs, coupled with O.G. Energy’s 50% participation in future project expenses, as formalized in the interim joint venture agreement announced on March 24, 2025. Managing Director and CEO Jane Norman emphasized the strategic advantage gained from Orbost’s strong production, stating that it empowers Amplitude Energy to optimize spot sales and bolster cash flows. These strengthened cash flows, combined with the O.G. Energy joint venture, position the company favorably for pursuing growth investments in the ECSP. Amplitude Energy focuses on supplying the Southeast domestic gas market, owning and operating offshore gas fields and onshore processing plants in the Otway and Gippsland Basins.
