Amplitude Energy (ASX:AEL) reported record operational and financial results for the first half of FY2026, citing improved production performance at its Orbost gas plant, higher realized gas prices, and continued cost control. Management also outlined progress on the East Coast Supply Project (ECSP), including drilling at the Isabella prospect following a disappointing outcome at Elanora, and flagged a higher full-year production outlook.
Record first-half results and higher FY2026 production guidance
Chief Executive Jane Norman said the company delivered “records in all of our key operational and financial metrics” for the first half of FY2026. Underlying EBITDA came in at AUD 100.3 million, while adjusted cash flow from operations was AUD 85.6 million. Sales revenue was AUD 141.5 million, which CFO Ian Bucknall said was a record for a half and 6% higher than the prior comparable period, driven by higher sales volumes and stronger realized gas prices.
Orbost performance, pipeline capacity lift, and Sole field upside work
In the Gippsland Basin, management highlighted continued improvements at Orbost. The plant produced at a record average processing rate of 66.3 TJ/day for the half, and the company reported that sulfur processing and removal were no longer a constraint to production. Norman said that for the first time since the Sole field came online in 2020, Orbost had zero cleans of the sulfur absorber units over the six months to December 31, 2025, which reduced costs and supported higher production.
Regulatory approval received in December to lift Sole Pipeline production capacity allowed Orbost to operate above its prior nameplate level of 68 TJ/day. The company said it has since trialed production above 70 TJ/day, including a new 14-day average record of 70.9 TJ/day and a daily production record of 71 TJ/day.
On the earnings call Q&A, management said pipeline pressure differential is currently a limiting factor as the plant pushes above 68 TJ/day. Norman said the company is working to reduce pressure drop across the pipeline, including minor capital changes planned over the next couple of months, and is targeting tests into the “low to mid-70s” before the end of the financial year.
The company reiterated confidence in Sole reservoir performance and noted further technical studies assessing upside. Management referenced previously announced increases in Sole reserves at year-end 2025, with 1P and 2P reserves up 19% and 9%, respectively, citing field performance and subsurface evaluation. In Q&A, COO Chad Wilson said ongoing higher-rate production is providing improved flowing material balance data, and suggested the company is seeing signs of “more energy in the system” than previously modeled. When asked whether potential upside is about higher recovery or a larger accumulation, Wilson said the company is considering that “maybe the size of the tank is a bit bigger.”
Otway and Cooper operations; cost and margin commentary
In the Otway Basin, Amplitude reported an average processing rate at Athena of 8.2 TJ/day (net to its 50% share) during the first half. The Casino Four well was unavailable, with production cycled through other wells. Management said it plans to bring Casino Four back into production during the current half, and that a successful restart would add over 1 TJ/day of additional gross production on average through the Athena plant over the coming year. Front-end engineering design for Athena upgrades tied to the ECSP was also completed.
In the Cooper Basin, management said production is recovering after last year’s floods, with output up 21% quarter-on-quarter at the end of last year. A three-well development campaign in the Callawonga field was completed, with production expected to commence in the second half of FY2026.
On costs, Bucknall said production expenses were just under AUD 25 million, down 14% year-over-year, with unit production costs of AUD 1.79 per TJ. He cautioned, however, that higher production costs are expected in the second half due to maintenance at the CHN fields in the Otway Basin and a scheduled Athena shutdown in April.
Gas pricing, contracting strategy, and new trading initiatives
Amplitude said its contracting and marketing strategy is positioned to lift average realized pricing. Management described a recontracted tranche of gas aligned with “mid-teen” pricing that steps up materially from January 1, 2026. Combined with CPI indexation, the company said it expects an approximate 20% increase in weighted average contract gas price in calendar 2026 compared with 2025, when it averaged “a little over AUD 9/GJ.”
Amplitude also emphasized increasing exposure to uncontracted or spot volumes as a potential driver of margin expansion. Norman said the commercial team has pursued trading opportunities across multiple spot markets, including shifting sales profiles to high-demand periods and prioritizing higher-price markets.
The company highlighted a new contractual arrangement with ENGIE to supply the Pelican Point Power Station, which management said provides exposure to South Australian spot electricity prices between a strike price and a cap, “effectively mimicking the spot spread value” of the plant during peak demand periods.
ECSP drilling update, Elanora post-mortem, and path to FID
Management said the ECSP remains on schedule and budget and described it as the company’s major medium-term growth project. Wilson said the program involves developing the Annie discovery and up to three additional fields (Isabella, Juliet, and potentially Nestor) upon exploration success, with Athena plant life potentially extended by over a decade from 2028. He said contracting negotiations for ECSP gas are “very well advanced,” and the company expects to sign foundational gas supply agreements with multiple customers “in the near term.” Wilson added that Amplitude intends to proceed to a final investment decision on the development phase “in the coming weeks.”
Following the Elanora exploration result, which management called disappointing, Amplitude shifted attention to Isabella, which it described as the intended producing field for ECSP upon success. Wilson said Isabella targets a Waarre C reservoir that is “completely separate” to the reservoir tested at Elanora (Waarre A), and he stated that the Elanora result does not change the company’s view of success probabilities for Waarre C prospects such as Isabella, Juliet, or Nestor.
During Q&A, management described work underway to explain the strong seismic amplitude at Elanora despite the absence of gas. Wilson said Elanora encountered thick, high-quality Waarre A sands and confirmed top seal, with the leading theory being a potential “gas thief zone” involving the adjacent Nullawarre Greensand abutting the Waarre A across a fault previously thought to be sealing. He added that other prospects have different trapping mechanisms and that the company also sees “flat spots” in seismic data in addition to amplitude support. Management said initial Isabella results were expected in the coming days, while full evaluation could take a week or two and any resource booking would align with the usual end-of-financial-year process.
Amplitude also discussed longer-term growth options in Gippsland, including a potential restart of Patricia Baleen. Wilson said select-phase studies indicate Patricia Baleen could add roughly 4–10 TJ/day through Orbost with minimal facility modifications, with key works focused on offshore repairs, and that Amplitude anticipates entering FEED in the current financial year after completing select-phase studies.
About Amplitude Energy (ASX:AEL)
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. The company issues fixed index and rate annuities, as well as single premium immediate annuities. It markets its products through independent agents, including independent marketing organizations, broker/dealers, banks, and registered investment advisors. American Equity Investment Life Holding Company was incorporated in 1995 and is headquartered in West Des Moines, Iowa.
