Amplify Energy Reaches Agreement with U.S. Attorney’s Office to Resolve Matters Associated with Southern California Pipeline Incident

Rhea-AI Summary

Amplify Energy Corp. (NYSE: AMPY) has reached a settlement with the U.S. government regarding the Southern California Pipeline Incident from October 2021. Subject to court approval, Amplify will plead guilty to a misdemeanor negligent discharge of oil under the Clean Water Act. The proposed settlement includes a $7.1 million fine payable over three years and $5.8 million in reimbursements to government agencies for response efforts. The company will also implement compliance measures such as a new leak detection system and increased inspections.

Positive

• Agreement to resolve federal criminal matters reflects cooperation with government agencies.
• Implementation of compliance measures may enhance operational safety.

Negative

• Pleading guilty to a misdemeanor may tarnish the company's reputation.
• Total financial impact from fines and reimbursements reaches approximately $12.9 million.

HOUSTON, Aug. 26, 2022 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (“Amplify” or the “Company”) (NYSE: AMPY) today announced that it has reached an agreement with the United States government, subject to court review and approval, to resolve all federal criminal matters involving the Company and its subsidiaries stemming from the October 2021 Southern California Pipeline Incident. As part of the resolution with the United States, Amplify has agreed to plead guilty to one count of misdemeanor negligent discharge of oil in violation of the Clean Water Act. If approved by the Court, Amplify will pay a fine of approximately $7.1 million in installments over a period of three years, serve a term of four years’ probation and reimburse governmental agencies approximately $5.8 million for their response to this event. Amplify also has agreed to implement certain compliance measures including installation of a new leak detection system and increased Remote Operated Vehicle inspections of the pipeline.

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “From the outset, Amplify Energy has been committed to working cooperatively with the various agencies investigating this incident. We believe this resolution, which is subject to court review and approval, reflects the commitments we made immediately following the incident to impacted parties and is in the best interest of Amplify and its stakeholders. We are 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 was the settlement amount for Amplify Energy Corp. related to the pipeline incident?

Amplify Energy Corp. faces a total financial impact of approximately $12.9 million, including a $7.1 million fine and $5.8 million in reimbursements.

What are the compliance measures Amplify Energy agreed to implement?

Amplify Energy will implement a new leak detection system and increase Remote Operated Vehicle inspections of the pipeline.

What charge did Amplify Energy Corp. plead guilty to?

Amplify Energy Corp. pleaded guilty to one count of misdemeanor negligent discharge of oil in violation of the Clean Water Act.

How long will Amplify Energy be under probation?

Amplify Energy will serve a term of four years' probation as part of the settlement.