Amplify Energy Update on San Pedro Bay Pipeline Permit

Rhea-AI Summary

Amplify Energy Corp. (NYSE: AMPY) announced it has received Nationwide Permit 12 from the U.S. Army Corps of Engineers for pipeline repairs. This approval allows for the removal of damaged pipeline segments from the ocean floor, aiding ongoing investigations into a January 2021 incident where vessels struck the pipeline. The repair is expected to take three to four weeks post-barge deployment, followed by safety tests and PHMSA review before restarting the Beta field in Q1 2023.

Positive

• Received Nationwide Permit 12 for pipeline repair.
• Repair plan approved by federal pipeline safety regulators.
• Pipeline removal and repair will aid in future risk assessments.

Negative

• Ongoing litigation regarding the January 2021 incident.
• Delay in the Beta field restart until Q1 2023.

HOUSTON, Oct. 01, 2022 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (“Amplify” or the “Company”) (NYSE: AMPY) today announced that it has received the Nationwide Permit 12 from the U.S. Army Corps of Engineers to proceed with repair plans that were reviewed and approved by federal pipeline safety regulators earlier this year. This is the next phase of the Company’s repair plan and includes removing the damaged segments of the pipeline from the ocean floor. By removing the damaged segments of the pipeline, regulators, the parties in the litigation and Amplify will be able to complete further analysis of the impact from the vessels dragging their anchors and striking the pipeline on January 25, 2021.

Following the removal of the pipe segments, new segments will be installed in accordance with the approved repair plans. The Company estimates the work will take approximately three to four weeks to complete after the repair barge is deployed.

After the pipeline is repaired, it will undergo a series of safety integrity tests as required by both federal pipeline safety regulations and the Oct. 5, 2021 PHMSA corrective action order. Thereafter, Amplify anticipates that PHMSA will review the pipeline restart plan. Once finalized, the Company will begin the process of bringing the Beta field back online, which is expected to occur in the first quarter of 2023.

Amplify Energy is committed to safely operating in a way that ensures the protection of the environment and the surrounding communities – communities where many of Amplify’s employees live and raise their families.

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.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Amplify expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “would,” “should,” “could,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Amplify believes that these statements are based on reasonable assumptions, but such assumptions may prove to be inaccurate. Such statements are also subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Amplify, which may cause Amplify’s actual results to differ materially from those implied or expressed by the forward-looking statements. Please read the Company’s filings with the Securities and Exchange Commission, including “Risk Factors” in its Annual Report on Form 10-K, and if applicable, its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other public filings and press releases for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. All forward-looking statements 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. Amplify 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.

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 did Amplify Energy announce on October 1, 2022?

Amplify Energy announced it received Nationwide Permit 12 to proceed with pipeline repairs approved by federal regulators.

How long will the repair work on the pipeline take?

The repair work is estimated to take approximately three to four weeks after the repair barge is deployed.

When is the Beta field expected to restart operations?

The Beta field is anticipated to come back online in the first quarter of 2023.

What incident led to the need for pipeline repairs?

The repairs are related to a January 25, 2021 incident where vessels dragged anchors and struck the pipeline.

What safety measures will be taken after repairing the pipeline?

After repairs, the pipeline will undergo a series of safety integrity tests as required by federal regulations.