
As part of the transaction agreements, two of Amplify’s board members will be replaced by Edward Geiser and Josh Schmidt, both partners at Juniper. (Source: T. Schneider/Shutterstock.com)
Amplify Energy Corp. will combine with certain privately-held Juniper Capital portfolio companies, adding complementary oil-weighted producing assets and leasehold interests in the Denver-Julesburg (D-J) and Powder River basins to its portfolio, the company said Jan. 15.
As part of the agreement, Houston-based Amplify will issue approximately 26.7 million shares of its stock to Juniper at $0.01 per share and assume approximately $133 million in debt. Juniper shareholders will own 39% of the combined company and Amplify shareholders will retain 61%.
The deal increases Amplify’s scale in the Rockies, adding approximately 19 MMBoe of proved developed resources with a PV10 value of $330 million. It includes 287,000 net acres in the D-J and Powder River, with over 115,000 net acres operated and held-by-production.
Average daily production of the assets in third-quarter 2024 was 7,900 net boe (81% oil, 90% liquids).
“This transaction adds a new oil-rich area with significant current production and substantial upside to the company's asset base,” said Amplify President and CEO Martyn Willsher in the press release. “Juniper's assets in the Rockies complement Amplify's ongoing development of our Beta Field and our strong cash flow from our legacy onshore assets.”
Amplify has identified target formations near properties held by large operators such as EOG Resources, Devon Energy and Occidental Petroleum, which include the Codell Formation in the D-J and the Parkman, Turner, Niobrara and Mowry in the Powder River.
"The combination of our Rockies assets with Amplify's existing operations creates a differentiated public company with strong cash flow and deep inventory,” said Edward Geiser, Juniper's managing partner. “The combined company will have the flexibility to grow organically within its existing asset base and to pursue strategic consolidation in highly economic areas where few other large companies are currently focused.
As part of the transaction agreements, two of Amplify’s board members will be replaced by Edward Geiser and Josh Schmidt, both partners at Juniper.
Houlihan Lokey Capital Inc. served as Amplify's financial adviser for this transaction and Kirkland & Ellis LLP served as Amplify's legal advisors. Wells Fargo served as Juniper's financial adviser for and Gibson, Dunn & Crutcher LLP served as Juniper's legal advisors.
Recommended Reading
E&P Highlights: Feb. 24, 2025
2025-02-24 - Here’s a roundup of the latest E&P headlines, from a sale of assets in the Gulf of Mexico to new production in the Bohai Sea.
E&P Highlights: March 24, 2025
2025-03-24 - Here’s a roundup of the latest E&P headlines, from an oil find in western Hungary to new gas exploration licenses offshore Israel.
E&P Highlights: Jan. 27, 2025
2025-01-27 - Here’s a roundup of the latest E&P headlines including new drilling in the eastern Mediterranean and new contracts in Australia.
Murphy’s Vietnam Find May Change Investor Views, KeyBanc Analysts Say
2025-01-09 - The discovery by a subsidiary of Murphy Oil Corp. is a reminder of the company’s exploration prowess, KeyBanc Capital Markets analysts said.
CNOOC Makes Oil, Gas Discovery in Beibu Gulf Basin
2025-03-06 - CNOOC Ltd. said test results showed the well produces 13.2 MMcf/d and 800 bbl/d.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.