Amplitude Energy Ltd (ASX: AEL) is an ASX All Ords penny stock currently trading for approximately $0.24.
It is an energy company supplying gas and oil to the domestic market. It is involved in the discovery and commercialisation of gas from the Otway and Gippsland Basins in Victoria and its sale in southeast Australia.
The company has a number of major gas supply contracts with customers. These include AGL Energy, Alinta Energy, EnergyAustralia, VISY, and Origin Energy. Its gas segment accounts for the vast majority of the company's revenue.
Yesterday, the team at Macquarie issued a new report on this ASX All Ords energy stock. The analysis suggests it could be a penny stock with plenty of upside.
Image source: Getty Images
Top pick for East Coast gas exposure
Macquarie said unlike peers, this ASX All Ords stock is relatively immune from lower oil prices.
The broker noted that with its base business now performing well, and the compelling value proposition in reloading the Athena plant in the Otway, it believes investors should focus on the upcoming drilling.
As is often the case, we expect AEL shares should do well into the first drilling in Jan.
It said the campaign has potential to add >$0.15cps additional value (over & above the $0.35/sh valuation), and support VIC state in solving tightening gas balances.
An important date to watch will be when AEL makes a decision in the March-2026 quarter on whether it will utilise its optional rig slot to drill the Nestor prospect.
Macquarie believes after raising capital, it will.
Price target upside
The broker said AEL remains its key pick for east coast gas exposure.
We expect the share price to firm as we approach Elanora/Isabella drilling in early CY26.
It currently has an outperform rating on this ASX All Ords stock and a price target of $0.35.
Based on today's share price, this indicates an upside of 45.83%.
It's important for investors to also be aware of the volatility that can come with penny stock investments.
