Zinger Key Points
- Amplify Energy merges with certain Juniper Capital portfolio companies.
- The merger boosts growth opportunities, with hundreds of drilling locations and expected synergies to enhance free cash flow.
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Amplify Energy Corp. AMPY shares are trading lower on Wednesday following the announcement of a merger with Juniper Capital, a privately held firm.
The definitive merger agreement, set to close in the second quarter of 2025, will combine Amplify with Juniper’s portfolio companies that own significant oil-producing assets in the DJ and Powder River Basins.
Under the terms, Amplify will issue approximately 26.7 million shares and assume $133 million in debt.
Following the merger, Juniper will own 39% of the company, while Amplify shareholders retain 61%.
This move boosts Amplify’s scale, adding around 19 million barrels of oil equivalent in proved-developed reserves and 287,000 acres in prime oil fields in Wyoming.
The acquisition, which had an average daily production of 7,900 Boe in the third quarter of 2024, is expected to improve operating metrics with low operating costs. Additionally, the deal enhances Amplify’s growth opportunities, including hundreds of high-quality drilling locations.
The merger also creates opportunities for future consolidation in the Rocky Mountain Basins, positioning Amplify for further growth and efficiencies.
The company expects the transaction to be accretive to free cash flow, with synergies from cost optimization and tax savings.
Amplify’s CEO, Martyn Willsher, sees significant value and growth potential for shareholders. “This transaction adds a new oil-rich area with significant current production and substantial upside to the Company’s asset base.”
“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,” Willsher added.
Price Action: AMPY shares are trading lower by 8.80% to $5.91 at last check Wednesday.
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