Amplify Energy Reaches Agreement with State of California to Resolve Matters Associated with Southern California Pipeline Incident

Rhea-AI Summary

Amplify Energy Corp. (NYSE: AMPY) has reached an agreement with California to resolve criminal matters from the October 2021 Pipeline Incident. The company will enter a No Contest plea to six misdemeanor charges and pay a $4.9 million fine, distributed to the State and Orange County. Additionally, Amplify will serve a year of probation and implement compliance enhancements. CEO Martyn Willsher reaffirmed the company's commitment to the environment and community following the incident, highlighting efforts in cleanup and cooperation with state agencies.

Positive

• Agreement reached with California to resolve all criminal matters.
• Plea agreement includes a commitment to compliance enhancements.
• CEO emphasizes ongoing commitment to environmental safety and community support.

Negative

• Amplify will incur a fine of $4.9 million.
• Company's plea to misdemeanors could impact reputation and stakeholder confidence.

HOUSTON, Sept. 08, 2022 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (“Amplify” or the “Company”) (NYSE: AMPY) today announced that it has reached an agreement with the State of California to resolve all criminal matters involving the Company and its subsidiaries stemming from the October 2021 Southern California Pipeline Incident.

As part of the resolution with the State of California, Amplify has agreed to enter a plea of No Contest to six misdemeanor charges. If approved by the Court, the Company will pay a fine in the amount of $4.9 million to be distributed among the State of California, including the State’s Fish and Game Preservation Fund, and Orange County. Amplify also will serve a one-year term of probation and has agreed to certain compliance enhancements to its operations. This resolution, along with the plea agreement regarding federal criminal matters previously announced, if approved by both courts, will resolve all criminal matters stemming from the Southern California Pipeline Incident.

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “This resolution with the State of California, which follows Amplify’s plea agreement with the U.S. Attorney’s office, further reflects the commitments we made immediately following the incident to the communities and environment impacted by the release. We worked diligently to support the successful clean-up and remediation efforts, including deploying upwards of 1,800 oil spill response contractors, have paid covered claims as expeditiously as possible, and continue to work cooperatively with the various state and federal agencies investigating these matters. Amplify Energy remains committed to safely operating in a way that ensures the protection of the environment and the surrounding communities.”

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, federal waters offshore Southern California, East Texas / North Louisiana, and the Eagle Ford. For more information, visit www.amplifyenergy.com.

Investor Relations Contacts

Jason McGlynn – Chief Financial Officer
(832) 219-9055
jason.mcglynn@amplifyenergy.com

Media Contact

Amy Conway
Amy.Brown@fticonsulting.com

FAQ

What recent legal agreement did Amplify Energy Corp. reach?

Amplify Energy Corp. reached an agreement with California to resolve criminal matters from the October 2021 pipeline incident.

How much will Amplify Energy pay in fines?

Amplify Energy will pay a $4.9 million fine as part of the agreement.

What charges did Amplify Energy plead to?

Amplify Energy pleaded No Contest to six misdemeanor charges.

What are the implications of the plea agreement for Amplify Energy?

The plea agreement includes a one-year probation period and compliance enhancements, which may impact the company's operations.

Who commented on the resolution of the criminal matters?

Martyn Willsher, Amplify's President and CEO, commented on the resolution and the company's commitment to the environment.