Amplitude Energy Represents Compelling Buying Opportunity at Current Share Price, Euroz Hartleys Says
Amplitude Energy (ASX:AEL) is expected to deliver record performance in the fiscal fourth quarter and represents a compelling buying opportunity at its current share price, Euroz Hartleys said in a Monday note.The equity research firm said it expects the company to perform well in fiscal Q4 due to continued production de-bottlenecking at its Orbost gas asset in Victoria, incremental production from other basins, including new Callawonga oil wells in the Cooper Basin, as well as an expected rise in spot gas prices.Euroz Hartleys forecasts fiscal Q4 production of 7 petajoules equivalent and revenue of AU$86.7 million for Amplitude. It also lowered its forecast for the company's fiscal year capital expenditure to AU$136 million, resulting in a lower estimated year-end net debt position.Additionally, Euroz Hartleys said it maintains high confidence in the phase two outcomes of the company's East Coast Supply Project, given its "location in the core producing area of the Otway Basin and compelling geophysical signatures/simple trapping geometries of the targets."The equity research firm maintained a buy recommendation on the company and raised its price target to AU$3.40 per share from AU$3.25, reflecting an updated risked sum-of-the-parts valuation.Shares of Amplitude Energy were down 1% in recent Monday trade.