As of October 31, Amplify had net debt of approximately $104 million, consisting of $120 million outstanding under our revolving credit facility and $16 million of cash on hand. Net debt has been reduced $79 million or 43% since December 31, 2022. The company’s liquidity was approximately $31 million, and net debt to last 12 months adjusted EBITDA was approximately 1.2x. Finally, I would like to discuss our hedge book. As previously announced, we added substantially to our oil and gas derivative positions covering the next 3 years of production to satisfy the covenants under our new credit facility. Improving commodity prices in late summer enabled us to execute trades at attractive levels that support our cash generation profile and provide upside participation should prices increase in the future.
As of November 6, our forecasted crude oil production was approximately 65% to 70% hedged for the remainder of 2023 and 2024, 45% to 50% hedged for 2025 and 15% to 20% hedged in 2026. On the gas side, we are approximately 75% to 85% hedged for the remainder of 2023 through 2025 and 40% to 45% hedged in 2026. With that, I’ll turn the call back to Martyn.
Martyn Willsher: Thank you, Jim. Over the past 18 months, the company has continued to deliver on its promises. Having brought beta back online and steadily increased production in a deliberate manner and successfully refinancing our debt under a new credit facility. Amplify is now positioned to unlock additional value from our mature diversified portfolio of cash flow generating assets. As we near the end we reaffirm our 2023 full year guidance and are focused on executing on our strategic initiatives. With that, operator, we are now open for questions.
Operator: [Operator Instructions] And it appears that we have no questions at this time. I will now turn the program back over to our presenters for any additional or closing remarks.
Martyn Willsher: Thank you. As always, we like to listen to questions that have come in to us through our investors. Kind of aggregate them and respond to them. So Jim, if you’d like to ask some questions that have come in.
Jim Frew: Yes. So I think the first question that came in was around Magnify. So obviously, we’ve announced that for the first time. And the question is around what is Magnify’s potential? What could it be? How are you guys thinking about that? So I don’t know, Dan, if that’s something you’re going to take?
Dan Furbee: Yes. We appreciate the question. We see Magnify really is a way to help us better control costs and the reliability of services we use in the field daily. Over the past couple of years, there’s been obviously inflation pressure on prices, and we’ve seen some instances where trouble getting certain services. So we think by in-housing some of these services will help us to better control our density. Thus far, we’ve spent a pretty nominal amount of capital on this endeavor, and the payback on this investment has been a matter of months. So these are very high — quick payback, high-margin services we bring in-house. And like we mentioned, in our remarks that mostly compression, well testing equipment and some other ancillary services.
But just overall, our type of assets mature, low-decline assets we expect it’s very important to try to squeeze every bit of LOE costs out of the system as we can. And this is a way we think we can help do that. Thanks for the question.
Jim Frew: Another question, I guess, I can take. So there’s been some questions around the Bairoil marketing process, why we’re thinking about that asset, what our plans are there, timing, et cetera. So I guess, first and foremost, we believe it’s a great asset. It’s with a great operating team. It generates a significant amount of cash flow for us, and it’s a low decline asset. But that all being said, based on where it is, it might have more value to somebody else, especially if they can leverage any kind of infrastructure they may have in the area. So we’re going to run a dual process. We’ve hired an investment bank to do that. We’ll pursue both an outright asset sale as well as other alternative modification and structures.
Certainly, there have been a lot of folks in our industry recently announcing asset-backed securitization so that’s something we will pursue in parallel with that asset. Our goal would be to maximize the value and part and parcel of that is our current credit facility has some restrictions on when we are allowed to return capital to shareholders. Most notably, we need to have capacity or availability above 30% pro forma for any capital return we do. So certainly, if we were to monetize the asset at the appropriate value that would allow us to accelerate any kind of return of capital options that we may have at our disposal. Lastly, I guess I’d say we’re under no real pressure to sell the asset, so we will only transact if the value exceeds what we believe to be the hold value.
We think we’ll run a thorough process with our investment bank adviser but we’ll have more to announce upon that next year, following the first quarter when we initiate the process. So I think that covers most items related to Bairoil. So the final thing, I guess, that came up and it was part of the 3 strategic updates was any kind of information around beta. So Martyn, do you want to take that?
Martyn Willsher: Certainly. Obviously, beta is an important asset to us, and we’ve been spending time, money, effort to get that asset back up to full production, which it already is, and going higher, thanks to the efforts of Dan and the operating team out at beta. So really encouraged about where we are. Obviously, we had to as we’ve done this, we’ve also been initiating the cost reduction initiatives, which we haven’t seen flow through financials and that you’ll start to see them in the fourth quarter and going into next year but we’ve substantially reduced diesel usage, which will start to flow into the financials, but also has an impact on emissions credits and things of that nature that we spend money on. So all that is coming through the fourth quarter and beyond.
But we’ve also looked at and we did this back in 2021 is there is an incredible opportunity here to develop this asset. As we’ve mentioned before, this is a — this is largely a fixed cost asset and there’s very little incremental variable costs in bringing new production online just — and with us moving to the power generated from electricity and shore power, it’s even less. And so these wells that are $5 million to $6 million have very short paybacks of, call it, 6 to 12 months at current pricing. And we’re really intrigued by the potential of these wells going forward. So we’ve been — we waited until we’ve got most of the workovers done. We are officially going to try to kind of finish off the majority of the workers through the end of the year and the beginning of next year and then quickly pivot into that development program.
We’re currently expecting — we’re planning about 4 wells. Obviously, we have some flexibility there. The better things go, the more we can potentially increase the number of wells going forward, but it’s currently planned at a 4-well program in ‘24 and 3-well program in ‘25, but obviously, we have flexibility there depending on how things progress. But we’re really excited about — like I said, the fact that we’re already back at pre-shutdown levels and going higher as were throughout the quarter and going into next year. And once again, that development program will be on top of that. So really excited about the potential for that asset. But that — I think that’s all the kind of the aggregated questions we got from our shareholder base.
