The S&P/ASX 300 Index (ASX: XKO) is down 0.2% in morning trade on Friday, but that's not holding back this surging ASX 300 energy stock.
Today's outperformance follows news of a sales agreement with Australian electricity provider AGL Energy Ltd (ASX: AGL).
Any guesses?
If you said Amplitude Energy Ltd (ASX: AEL), go to the head of the virtual class.
Amplitude Energy shares closed yesterday trading for $1.72. At time of writing, shares are changing hands for $1.83 apiece, up 6.4%.
Currently trading for $9.45 each, AGL shares are down 0.5% at this same time.
Here's what's catching investor interest.
Image source: Getty Images
ASX 300 energy stock jumps on AGL gas sales deal
Amplitude Energy shares are leaping higher after the ASX 300 energy stock announced that it has executed a binding Foundation Gas Sales Agreement (GSA) with AGL.
Covering an initial four-year term, the deal would see Amplitude supply AGL with 20 petajoules (PJ) of gas from its East Coast Supply Project (ECSP).
The price Amplitude Energy receives for that gas will be linked to prevailing market rates for oil prices. Management is targeting first supply in the second half of 2028.
The ASX 300 energy stock noted that its sales agreement with AGL depends on its current ECSP drilling campaign confirming enough gas reserves and production capacity.
What did management say?
Commenting on the deal that's helping boost the ASX 300 energy stock today, Amplitude Energy managing director and CEO Jane Norman said, "We are delighted to extend our long-term partnership with AGL Energy through this Foundation GSA for the ECSP."
According to Norman:
AGL Energy has been a key supporter of Amplitude Energy, including as a foundation buyer from the Sole gas project. This GSA reflects the strong demand we are seeing for reliable, domestic gas supply in Southeast Australia, as well as both parties' confidence in the ECSP.
"This agreement supports AGL's strategy to secure reliable, long-term domestic gas supply and underpin new production to market," AGL chief commercial officer David Moretto said.
Moretto added:
Gas remains essential in firming large scale renewables and supporting customers through the transition, particularly in South East Australia. It reflects our disciplined approach to contracting that underpins system reliability and customer outcomes.
How have AGL and Amplitude Energy shares been tracking?
It's been a volatile year for both Amplitude Energy and AGL shares.
With more downs than ups, the AGL share price has dropped 8% over the past 12 months.
Amplitude Energy shares remain down 10% since this time last year.
