Amplify Energy (AMPY) Newsfilter·2025-01-15 12:00Core Viewpoint - Amplify Energy Corp. has entered into a definitive merger agreement with Juniper Capital to combine with certain Juniper portfolio companies, enhancing its oil-weighted producing assets and leasehold interests in the DJ and Powder River Basins [1] Strategic Rationale and Benefits - The transaction will add approximately 19 million barrels of oil equivalent (MMBoe) of Proved Developed Reserves, with a present value (PV10) exceeding $330 million [2] - Amplify will gain around 287,000 net acres in the DJ and Powder River Basins, with over 115,000 acres being operated and held-by-production, allowing for opportunistic development over time [2] Operating Metrics and Corporate Efficiency - The acquired assets had an average daily production of approximately 7,900 net barrels of oil equivalent (Boe) in Q3 2024, with 81% being oil and 90% liquids [3] - The integration of these assets is expected to improve operating metrics and corporate efficiency with minimal incremental overhead costs [3] Organic Growth Opportunities - Amplify has identified hundreds of potential high-quality drilling locations to complement its existing development inventory, targeting formations in the DJ and Powder River Basins [4] Accretion and Synergies - The transaction is anticipated to be significantly accretive to free cash flow in 2025 and over a five-year horizon, with expected material synergies from optimizing overhead and income tax savings [5] Future Consolidation Opportunities - The merger creates a new core area for future consolidation opportunities, allowing for potential accretive acquisitions from smaller private companies or non-core assets of larger operators [6] Management and Board Changes - Edward Geiser and Josh Schmidt from Juniper Capital will join Amplify's Board of Directors, while Amplify's management team will lead the combined company [8]