Amplify Energy Reaches Settlement Terms In Southern California Pipeline Civil Litigation

Rhea-AI Summary

Amplify Energy Corp. (NYSE: AMPY) announced an agreement in principle to settle all civil claims related to the Southern California Pipeline Incident from October 2021. The settlement will be funded through the company's insurance policies and is subject to court approval. President and CEO Martyn Willsher expressed satisfaction with the resolution, emphasizing the company's commitment to pursue claims against parties responsible for the incident. This development aims to conclude ongoing litigation and stabilize the company's legal landscape moving forward.

Positive

• Agreement to settle civil claims may lead to reduced legal uncertainties.
• Settlement funding through insurance minimizes financial strain on the company.
• CEO's confidence in resolving litigation reflects a strategic approach towards business continuity.

Negative

• Final settlement agreement is still subject to court approval, introducing potential uncertainty.
• The company has ongoing claims against third parties, indicating unresolved legal challenges.

HOUSTON, Aug. 25, 2022 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (“Amplify” or the “Company”) (NYSE: AMPY) announced today that it has reached an agreement in principle with plaintiffs in the class action to resolve all civil claims against Amplify and its subsidiaries. The settlement will be funded under the Company’s insurance policies, and the final agreement will be subject to court approval.

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “We are pleased to have reached an agreement in principle regarding the civil litigation resulting from the Southern California Pipeline Incident last October. Although we are unable to provide additional detail at this time, we negotiated in good faith and believe we have come to a reasonable and fair resolution. We will continue to vigorously pursue our substantial claims for damages against the ships that struck our pipeline, and the Marine Exchange of Southern California that failed to notify us of the anchor strikes.”

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 Contact

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

Media Contact

Amy Conway
Amy.Brown@fticonsulting.com

FAQ

What settlement has Amplify Energy Corp. reached regarding the Southern California Pipeline Incident?

Amplify reached an agreement in principle to settle all civil claims related to the incident, subject to court approval.

How will Amplify Energy fund the settlement for the civil claims?

The settlement will be funded under the company's insurance policies.

What does the CEO of Amplify Energy say about the settlement?

CEO Martyn Willsher expressed satisfaction with the settlement agreement, stating it is a reasonable and fair resolution.

Is the settlement for Amplify Energy's claims finalized?

No, the settlement is still subject to court approval.

What ongoing legal actions does Amplify Energy face after the settlement?

Amplify continues to pursue substantial claims against the ships that struck their pipeline.