Amplify Energy Announces Transformational Combination with Juniper Capital’s Upstream Rocky Mountain Portfolio Companies
Amplify Energy Corp. (NYSE: AMPY) has announced a transformational merger agreement with Juniper Capital to combine with Juniper's portfolio companies owning oil-weighted assets in the DJ and Powder River Basins. Under the deal, Amplify will issue approximately 26.7 million shares and assume $133 million in net debt, with Amplify shareholders retaining 61% ownership.
The transaction adds approximately 19 MMBoe of Proved Developed Reserves valued at over $330 million, and 287,000 net acres in Wyoming. The acquired assets currently produce about 7,900 net Boe daily (81% oil, 90% liquids). The merger is expected to close in Q2 2025, subject to shareholder and regulatory approvals.
The deal aims to increase scale, improve operating metrics, and add organic growth opportunities through hundreds of potential drilling locations. The transaction is expected to be significantly accretive to free cash flow in 2025 and over a 5-year period, with material synergies from optimized operations and tax savings.
Amplify Energy Corp. (NYSE: AMPY) ha annunciato un'accordo di fusione trasformativa con Juniper Capital per combinarsi con le società del portafoglio di Juniper che possiedono attività pesanti in petrolio nei bacini DJ e Powder River. In base all'accordo, Amplify emetterà circa 26,7 milioni di azioni e assumerà 133 milioni di dollari di debito netto, con gli azionisti di Amplify che manterranno il 61% della proprietà.
La transazione aggiunge circa 19 MMBoe di Riserve Provate Sviluppate valutate oltre 330 milioni di dollari, e 287.000 acri netti nel Wyoming. Le attività acquisite producono attualmente circa 7.900 Boe netti al giorno (81% petrolio, 90% liquidi). Si prevede che la fusione si chiuda nel secondo trimestre del 2025, soggetta all'approvazione degli azionisti e delle autorità regolatorie.
L'accordo mira ad aumentare la scala, migliorare i parametri operativi e aggiungere opportunità di crescita organica attraverso centinaia di potenziali siti di perforazione. Si prevede che la transazione risulti significativamente favorevole al flusso di cassa libero nel 2025 e su un periodo di 5 anni, con sinergie significative derivanti da operazioni ottimizzate e risparmi fiscali.
Amplify Energy Corp. (NYSE: AMPY) ha anunciado un acuerdo de fusión transformador con Juniper Capital para combinarse con las empresas del portafolio de Juniper que poseen activos pesados en petróleo en las cuencas DJ y Powder River. Según el acuerdo, Amplify emitirá aproximadamente 26,7 millones de acciones y asumirá 133 millones de dólares en deuda neta, con los accionistas de Amplify manteniendo el 61% de la propiedad.
La transacción añade aproximadamente 19 MMBoe de Reservas Probadas Desarrolladas valoradas en más de 330 millones de dólares, y 287,000 acres netos en Wyoming. Los activos adquiridos producen actualmente aproximadamente 7,900 Boe netos al día (81% petróleo, 90% líquidos). Se espera que la fusión se cierre en el segundo trimestre de 2025, sujeta a la aprobación de los accionistas y reguladores.
El acuerdo tiene como objetivo aumentar la escala, mejorar las métricas operativas y añadir oportunidades de crecimiento orgánico a través de cientos de posibles lugares de perforación. Se espera que la transacción sea significativamente beneficiosa para el flujo de caja libre en 2025 y durante un periodo de 5 años, con sinergias materiales derivadas de operaciones optimizadas y ahorros fiscales.
Amplify Energy Corp. (NYSE: AMPY)는 Juniper Capital과의 변혁적인 합병 계약을 발표하여 Juniper의 석유 자산을 보유한 포트폴리오 회사들과 결합합니다. 이에 따라 Amplify는 약 2,670만 주의 주식을 발행하고 1억 3,300만 달러의 순 부채를 인수하며, Amplify 주주들은 61%의 지분을 유지합니다.
이번 거래는 약 19 MMBoe의 검증된 개발 가능한 매장량을 추가하며, 이는 3억 3천만 달러 이상의 가치가 있습니다. 더불어 와이오밍에 있는 287,000 에이커의 순 토지를 포함합니다. 인수된 자산은 현재 하루 약 7,900 Boe의 생산을 내고 있으며(81%가 원유, 90%가 액체) 있습니다. 합병은 2025년 2분기에 마무리될 것으로 예상되며, 이는 주주 및 규제 기관의 승인을 받아야 합니다.
이번 거래의 목표는 규모를 확대하고 운영 지표를 개선하며 수백 개의 잠재적 시추 장소를 통해 유기적 성장 기회를 추가하는 것입니다. 이 거래는 2025년과 5년간의 기간 동안 자유 현금 흐름에 상당한 기여를 할 것으로 예상되며, 운영 최적화 및 세금 절감에서 발생하는 물질적인 시너지가 기대됩니다.
Amplify Energy Corp. (NYSE: AMPY) a annoncé un accord de fusion transformateur avec Juniper Capital pour fusionner avec les entreprises du portefeuille de Juniper possédant des actifs pondérés en pétrole dans les bassins DJ et Powder River. Dans le cadre de l'accord, Amplify émettra environ 26,7 millions d'actions et assumera 133 millions de dollars de dette nette, les actionnaires d'Amplify conservant 61 % de la propriété.
La transaction ajoute environ 19 MMBoe de Réserves Développées Prouvées d'une valeur de plus de 330 millions de dollars, et 287 000 acres nettes dans le Wyoming. Les actifs acquis produisent actuellement environ 7 900 Boe net par jour (81 % de pétrole, 90 % de liquides). La fusion devrait se conclure au deuxième trimestre 2025, sous réserve de l'approbation des actionnaires et des régulateurs.
L'accord vise à accroître l'échelle, améliorer les indicateurs opérationnels et ajouter des opportunités de croissance organique à travers des centaines de sites de forage potentiels. La transaction devrait avoir un impact significatif sur le flux de trésorerie disponible en 2025 et sur une période de 5 ans, avec des synergies matérielles provenant d'opérations optimisées et d'économies fiscales.
Amplify Energy Corp. (NYSE: AMPY) hat eine transformative Fusionsvereinbarung mit Juniper Capital bekannt gegeben, um sich mit den Portfoliounternehmen von Juniper zu kombinieren, die ölgewichtete Vermögenswerte in den DJ- und Powder-River-Becken besitzen. Im Rahmen des Deals wird Amplify etwa 26,7 Millionen Aktien ausgeben und 133 Millionen Dollar an Nettoschulden übernehmen, wobei die Amplify-Aktionäre 61% Eigentum behalten.
Die Transaktion fügt etwa 19 MMBoe nachgewiesene entwickelte Reserven hinzu, die auf über 330 Millionen Dollar geschätzt werden, sowie 287.000 Netto-Acres in Wyoming. Die übernommenen Vermögenswerte produzieren derzeit etwa 7.900 netto Boe täglich (81% Öl, 90% Flüssigkeiten). Die Fusion wird voraussichtlich im 2. Quartal 2025 abgeschlossen, vorbehaltlich der Genehmigung durch die Aktionäre und die Aufsichtsbehörden.
Das Ziel des Deals ist es, die Skalierung zu erhöhen, die Betriebskennzahlen zu verbessern und organische Wachstumschancen durch Hunderte potenzieller Bohrstandorte hinzuzufügen. Es wird erwartet, dass die Transaktion im Jahr 2025 und über einen Zeitraum von 5 Jahren signifikant positiv für den freien Cashflow sein wird, mit wesentlichen Synergien aus optimierten Betriebsabläufen und Steuerersparnissen.
- Addition of 19 MMBoe Proved Developed Reserves valued at $330+ million
- Acquisition of 287,000 net acres with 90% working interest
- Current production of 7,900 net Boe/day (81% oil)
- Expected significant free cash flow accretion in 2025
- Material synergies from operational optimization and tax savings
- Assumption of $133 million in net debt
- 39% shareholder dilution from new share issuance
Insights
This merger represents a transformative deal that will substantially reshape Amplify Energy's operational footprint and financial profile. The transaction value implies approximately
The acquisition adds 7,900 BOE/d of production (81% oil-weighted) and 287,000 net acres in premium basins. The high oil cut and low operating costs should enhance corporate-level margins. The transaction's accretive nature to free cash flow and tax benefits from stepped-up basis provide immediate financial advantages. The strategic positioning alongside major operators like EOG, Devon and Occidental in the Rockies creates valuable optionality for future consolidation.
The strategic merit of this combination lies in its high-quality asset base in the DJ and Powder River Basins. The 115,000 net operated acres being held by production, coupled with
The multiple target formations - Codell, Parkman, Turner, Niobrara and Mowry - offer stacked pay potential and hundreds of high-quality drilling locations. The proximity to tier-one operators validates the acreage quality and suggests potential for technology transfer and operational optimization. This positions Amplify as a meaningful player in the Rockies consolidation landscape, where scale advantages are increasingly important.
The addition of Juniper Capital partners to Amplify's board, particularly Edward Geiser with his successful track record at Ranger Oil, brings valuable M&A and operational expertise. The transaction creates a more diversified portfolio, balancing existing California offshore operations (Beta Field) with premium onshore assets.
The minimal incremental overhead costs and planned organizational streamlining indicate strong potential for operational synergies. The combination creates a unique public vehicle focused on areas where larger operators have reduced their focus, potentially allowing for advantageous bolt-on acquisitions. This strategic positioning, combined with the improved scale and enhanced free cash flow profile, should drive stronger institutional investor interest in the stock.
HOUSTON, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today that it has entered into a definitive merger agreement (the “Merger Agreement” and the transactions contemplated thereby, the “Transaction”) with privately held Juniper Capital (“Juniper”) to combine with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins. Under the terms of the Merger Agreement, Amplify will issue Juniper approximately 26.7 million shares of Amplify common stock(1), par value
Strategic Rationale and Benefits
- Substantially Increases Scale
The transaction adds approximately 19 MMBoe of Proved Developed Reserves, with a PV10 value of over$330 M M(3), and also adds approximately 287,000 net acres in the DJ and Powder River Basins in Wyoming adjacent to some of the largest publicly traded U.S. oil companies. Over 115,000 of the net acres are operated and held-by-production, with a high average working interest of approximately90% . The large held-by-production position and multi-year term on a majority of the undeveloped acreage is expected to allow Amplify to opportunistically develop the assets over time.
- Materially Improves Operating Metrics and Corporate Efficiency
In the third quarter of 2024, average daily production of the acquired assets was approximately 7,900 net Boe (81% oil,90% liquids)(4). These assets generate strong margins with low operating costs, which we expect to improve operating metrics across the combined company. In addition, the acquired assets will be integrated into the existing platform with minimal incremental overhead costs, and the Company intends to continue streamlining the organization as it optimizes its portfolio of assets.
- Increases Organic Growth Opportunities
Amplify has identified hundreds of potential high-quality, operated drilling locations to complement Amplify’s existing development inventory. Target formations include the Codell formation in the DJ Basin, near properties held by EOG Resources, and multiple formations including the Parkman, Turner, Niobrara and Mowry in the Powder River Basin near properties held by EOG Resources, Devon, Occidental and other large operators.
- Significant Accretion and Synergies
The transaction is expected to be significantly accretive to free cash flow(5) in 2025 and over a 5-year time horizon. Amplify expects to benefit from material synergies including from optimizing overhead at the combined operations and from income tax savings related to the stepped-up basis of the acquired companies.
- Creates a Focal Area for Further Consolidation Opportunities
The large acreage position and operating footprint in premier Rocky Mountain Basins provide the Company with a new core area for future consolidation opportunities with the potential for accretive bolt-on acquisitions from smaller private companies or non-core assets of larger operators. Additionally, the more broadly scaled pro forma asset base will afford Amplify flexibility in optimizing cash flow and production across its portfolio.
Martyn Willsher, Amplify’s President and Chief Executive Officer commented, “We are excited to partner with the Juniper Capital team in this transformational merger to create immediate and long-term value for Amplify’s shareholders. This transaction adds a new oil-rich area with significant current production and substantial upside to the Company’s asset base. Juniper’s assets in the Rockies complement Amplify’s ongoing development of our Beta Field and our strong cash flow from our legacy onshore assets. We believe that the Rockies area will experience substantial growth in the coming years, and we look forward to developing this position, while becoming more organizationally focused and efficient.”
Edward Geiser, Juniper’s Managing Partner, added, “The combination of our Rockies assets with Amplify’s existing operations creates a differentiated public company with strong cash flow and deep inventory. The combined company will have the flexibility to grow organically within its existing asset base and to pursue strategic consolidation in highly economic areas where few other large companies are currently focused. We believe Martyn and his team at Amplify are optimally suited to lead the combined operations, and we are excited about being a long-term investor in the Company.”
Board of Directors and Management
Edward (“Eddie”) Geiser and Josh Schmidt, both partners at Juniper Capital, will join Amplify’s Board of Directors, replacing two of Amplify’s existing Board members. Amplify’s management team will lead the combined company and will supplement the operational team with key hires to support the Rockies assets.
Chris Hamm, Amplify’s Chairman commented, “We are delighted to welcome Eddie and Josh to the Amplify Board. The Juniper team has a long track record of success in the oil and gas industry, most notably their efforts in leading Ranger Oil Corporation’s highly successful consolidation strategy in the Eagle Ford. We look forward to benefiting from their experience and working closely with them to drive incremental value to Amplify’s shareholders.”
Advisors
Houlihan Lokey Capital, Inc. served as Amplify’s financial advisor for this transaction and Kirkland & Ellis, LLP served as Amplify’s legal advisors. Wells Fargo served as Juniper’s financial advisor for this transaction and Gibson, Dunn & Crutcher LLP served as Juniper’s legal advisors.
About Amplify Energy
Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.
Conference Call
Amplify will host an investor teleconference today at 10:00 a.m. Central Time to discuss the transaction. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC. A presentation providing additional details on the transaction will be available on the Amplify website www.amplifyenergy.com prior to the call.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements, other than statements of historical fact, included in this press release that addresses activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Company and its affiliates, including whether the conditions to the Mergers can be satisfied, whether the Mergers will be completed, as expected or at all, and the timing of Closing. Please read the Company’s filings with the Securities and Exchange Commission (the “SEC”), including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
Cautionary Note on Reserves and Resource Estimates
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include estimated reserves or locations not necessarily calculated in accordance with, or contemplated by, the SEC’s latest reserve reporting guidelines. You are urged to consider closely the oil and gas disclosures in the Company’s Annual Report on Form 10-K and our other reports and filings with the SEC.
Additional Information and Where to Find It
This press release relates to the proposed Transaction between Amplify and Juniper. In connection with the proposed Transaction, Amplify will file with the SEC a proxy statement on Schedule 14A (the “Proxy Statement”). Amplify will also file other documents regarding the proposed Transaction with the SEC. The Proxy Statement will be sent or given to the Amplify’s stockholders and will contain important information about the Transaction and related matters. INVESTORS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION WITH RESPECT TO THE TRANSACTION AND THE OTHER AGREEMENTS CONTEMPLATED BY THE MERGER AGREEMENT. You may obtain a free copy of the Proxy Statement (if and when it becomes available) and other relevant documents filed by Amplify with the SEC at the SEC’s website at www.sec.gov. You may also obtain Amplify’s documents on its website at https://www.amplifyenergy.com/investor-relations/default.aspx.
Participants in the Solicitation
Amplify, Juniper and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with certain matters related to the Transaction and may have direct or indirect interests in the Transaction. Information about Amplify’s directors and executive officers is set forth in Amplify’s Proxy Statement on Schedule 14A for its 2024 Annual Meeting of Stockholders, filed with the SEC on April 5, 2024, its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 7, 2024, and its other documents filed with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement and other relevant materials to be filed with the SEC regarding the proposed transaction when they become available. Investors should read the Proxy Statement carefully when it becomes available before making any voting or investment decisions. Investors may obtain free copies of these documents using the sources indicated above.
Footnotes
1) Share consideration calculated based on fully diluted Amplify shares as of January 13, 2025 including approximately 39.9 MM shares outstanding plus approximately 1.9 MM unvested equity awards previously granted under the Amplify employee incentive plans and measured at target.
2) Net debt consists of
3) Reserves and PV10 based on DeGolyer and MacNaughton midyear prepared report effective as of 10/1/2024 and utilizing strip pricing as of 10/25/2024; (NYMEX WTI, HH) - Bal24:
4) Based on preliminary third quarter 2024 unaudited results.
5) Free cash flow is a non-GAAP financial measure that is derived from the standardized measures of net income or net cash provided by operating activities. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities. The Company does not provide guidance on the items used to reconcile between forecasted free cash flow to forecasted net income and net cash provided by operating activities due to the uncertainty regarding timing and estimates of certain items. Therefore, we cannot reconcile forecasted free cash flow to net income or net cash provided by operating activities without unreasonable effort.
Contacts
Jim Frew -- Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com
Michael Jordan -- Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com
FAQ
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