What is December outlook for Amplify (NYSE:AMPY)?

The next fiscal quarter end is expected on the 31st of December 2021. The stock experiences an active upward rally. As many millenniums are trying to avoid energy space, it makes sense to break down Amplify Energy Corp a little further and try to understand its current market patterns. Here we also measure the ability of Amplify Energy to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a year ago
View all stories for Amplify Energy | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

Amplify Energy Corp currently holds 257.93 M in liabilities. The entity has a current ratio of 0.76, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Amplify Energy has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -1.9619, which signifies a somewhat significant risk relative to the market. Let's try to break down what Amplify's beta means in this case. As returns on the market increase, returns on owning Amplify Energy are expected to decrease by larger amounts. On the other hand, during market turmoil, Amplify Energy is expected to outperform it. Although it is extremely important to respect Amplify Energy Corp historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Amplify Energy Corp technical indicators, you can presently evaluate if the expected return of 0.11% will be sustainable into the future. Amplify Energy Corp right now shows a risk of 7.55%. Please confirm Amplify Energy Corp maximum drawdown, as well as the relationship between the skewness and day typical price to decide if Amplify Energy Corp will be following its price patterns.
Amplify Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Amplify Energy, including all of Amplify Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Amplify Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall Amplify Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Amplify Total Debt

Amplify Energy Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Amplify Energy Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Amplify Energy balance sheet include debt obligations and money owed to different Amplify Energy vendors, workers, and loan providers. Below is the chart of Amplify main long-term debt accounts currently reported on its balance sheet.
You can use Amplify Energy Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Amplify Energy's Liquidity

Amplify Energy financial leverage refers to using borrowed capital as a funding source to finance Amplify Energy Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amplify Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Amplify Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Amplify Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Amplify Energy's total debt and its cash.

Going after Amplify Financials

The modest gains experienced by current holders of Amplify Energy could raise concerns from investors as the firm it trading at a share price of 3.24 on 1,467,600 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 90 days investing horizon is currently 7.55. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Amplify Energy partners.

Liabilities Breakdown

34.1 M
Current Liabilities
29.4 M
Long-Term Liabilities
Total Liabilities86.31 Million
Current Liabilities34.09 Million
Long-Term Liabilities29.36 Million

Our perspective of the current Amplify Energy rise

Semi deviation is down to 8.36. It may suggest a possible volatility slide.
As of the 24th of November, Amplify Energy shows the Risk Adjusted Performance of 0.0223, mean deviation of 4.17, and Downside Deviation of 8.63. Amplify Energy Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Amplify Energy Corp, which can be compared to its rivals. Please confirm Amplify Energy Corp coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Amplify Energy Corp is priced correctly, providing market reflects its regular price of 3.24 per share. Given that Amplify Energy has jensen alpha of 0.1585, we suggest you to validate Amplify Energy Corp's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Amplify Energy

While other companies within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Amplify Energy may offer a potential longer-term growth to investors. To summarize, as of the 24th of November 2021, our primary 90 days buy-hold-sell advice on the company is Strong Sell. However, we believe Amplify Energy is fairly valued with average probability of distress for the next two years.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Amplify Energy Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com