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Amplitude Energy (ASX: AEL) Broker Ratings
Equity Espresso
March 26, 2025 • Estimated Reading Time: 3 minutes
Updated: March 26, 2025
Amplitude Energy (ASX: AEL) announced on Monday that it formed a 50/50 joint venture with O.G. Energy to supply gas to the East Coast market. O.G. Energy will immediately pay $25 million to cover historical costs. The project aims to produce up to 90 terajoules daily by 2028 through Amplitude's Athena Gas Plant, enough for over 600,000 Victorian homes.
Amplitude Energy Broker Ratings
Date | Broker | Rating | Price Target |
|---|---|---|---|
26/03/2025 | Bell Potter | Buy | $0.26 |
26/03/2025 | Macquarie | Outperform | $0.30 |
26/03/2025 | Ord Minnett | Hold | $0.23 |
26/03/2025
Bell Potter maintains its Buy rating and 26c target price for Amplitude Energy after announcing a 50:50 joint venture with O.G. Energy for the East Coast Supply project. The broker highlights the project's potential to increase production by 90TJ/day from 2028 and double the company's revenue compared to FY24. Amplitude expects phase 1 capital expenditure of up to $270m to increase net debt from $254m in December to approximately $350m by late 2026.
Macquarie maintains its Outperform rating on Amplitude Energy while slightly reducing its target price to 30c from 31c. This partnership enables the East Coast Supply Project to proceed with a three-well campaign starting in late 2025, targeting first gas by 2028. Amplitude will receive approximately $25m in cost reimbursements. Macquarie has increased its 2025 EPS forecast by 26% due to lower maintenance costs and considers Amplitude its top pick among East Coast gas plays.
Ord Minnett Ord Minnett maintains its Hold rating on Amplitude Energy with a target price of 23c, just 1c above the current share price of 22c. The broker notes Amplitude has formed a 50:50 joint venture with O.G. Energy to advance the East Coast Gas Supply Project, which will proceed after O.G. acquires Mitsui's 50% interest. Amplitude has increased its capital expenditure guidance, with phase 1 now estimated at $240-270m and phase 2 at $140-185m. The broker has raised its risk weighting to 90% for the project.
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