Amplify Energy Announces Transformational Combination with Juniper Capital’s Upstream Rocky Mountain Portfolio Companies

Core Viewpoint - Amplify Energy Corp. has entered into a definitive merger agreement with Juniper Capital to combine with certain Juniper portfolio companies, significantly enhancing its asset base and operational scale in the oil sector [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) of over $330 million, and approximately 287,000 net acres in the DJ and Powder River Basins [2] - Over 115,000 of the net acres are operated and held-by-production, with a high average working interest of approximately 90%, allowing for opportunistic development over time [2] Operating Metrics and Corporate Efficiency - In Q3 2024, the acquired assets had an average daily production of approximately 7,900 net barrels of oil equivalent (Boe), with 81% being oil and 90% liquids [3] - The assets are expected to improve operating metrics across the combined company due to strong margins and low operating costs, with minimal incremental overhead costs anticipated from integration [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 expected to be significantly accretive to free cash flow in 2025 and over a five-year horizon, with material synergies anticipated from optimizing overhead and income tax savings [5] Future Consolidation Opportunities - The large acreage position in premier Rocky Mountain Basins provides a core area for future consolidation opportunities, allowing for accretive bolt-on 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]