Amplify Energy has agreed to merge with certain portfolio companies of Juniper Capital that hold significant oil-producing assets and leasehold interests in the DJ and Powder River Basins in the US.
As part of the agreement, Amplify Energy will issue 26.7 million shares of its common stock to the privately held Juniper Capital and assume approximately $133m in net debt. Amplify Energy is listed on the New York Stock Exchange (NYSE).
Following the merger, Amplify Energy shareholders will retain 61% of the combined entity, with Juniper Capital holding the remaining 39%.
The deal will add an estimated 19 million barrels of oil equivalent (mmboe) in proved developed reserves, valued at a PV10 of over $330m to Amplify Energy.
It will also contribute approximately 287,000 net acres in Wyoming’s DJ and Powder River Basins, including more than 115,000 acres that are held-by-production with an average working interest of 90%.
Amplify Energy’s management indicated that the held-by-production position and extended lease terms on undeveloped acreage offer the flexibility for phased development.
The assets to be acquired by Amplify Energy produced an average of 7,900 barrels of oil equivalent (Boe) per day during Q3 2024.
Amplify Energy plans to integrate these assets into its existing operational platform with minimal overhead costs and expects the transaction to improve operating metrics across the combined portfolio.
The merger also expands Amplify Energy’s development inventory, adding hundreds of potential drilling locations in the DJ and Powder River Basins.
In the DJ Basin, the Codell formation is a primary target, situated near properties operated by EOG Resources. In the Powder River Basin, targeted formations include the Parkman, Turner, Niobrara, and Mowry, located in proximity to assets operated by EOG Resources, Devon Energy, and Occidental.
Amplify Energy said that the expanded acreage provides it with a foundation for future growth, including potential bolt-on acquisitions from smaller operators or non-core assets of larger companies.
Financial advisory services for the transaction were provided by Houlihan Lokey Capital for Amplify Energy, with legal support from Kirkland & Ellis. Juniper Capital received financial advice from Wells Fargo and legal counsel from Gibson, Dunn & Crutcher.
The transaction, which is subject to shareholder and regulatory approval, is expected to close in Q2 2025.
