Amplify Energy (AMPY) M&A Announcement summary

Deal rationale and strategic fit

• The merger with Juniper Capital's Rockies portfolio nearly doubles acreage, adds a new core growth area in the Powder River and DJ Basins, and increases inventory of undeveloped locations and proved developed reserves.

• Diversifies production with a 69% liquids mix, enhances oil weighting to 55%, and adds long-life, low-decline assets with minimal maintenance requirements.

• Juniper Capital brings experienced board members and a track record of value creation, enhancing governance and strategic direction.

• The deal supports both organic and inorganic growth, providing a platform for future consolidation and expansion in the Rockies.

• Establishes a new core operating area in the Rockies, supporting sustainable capital returns and predictable cash flows.

Financial terms and conditions

• Juniper Capital will own 39% of the pro forma equity, receiving approximately 26.7 million Amplify shares, while Amplify assumes about $133 million in net debt.

• Board will have 7 directors: 5 from Amplify and 2 nominated by Juniper Capital.

• Existing debt at the acquired portfolio companies will be consolidated and refinanced under a streamlined, lower-cost capital structure.

• Capital allocation will prioritize debt reduction, growth investment, and maintaining flexibility for future opportunities.

• The transaction is expected to close in Q2 2025, subject to shareholder and regulatory approvals.

Synergies and expected cost savings

• Significant G&A synergies and overhead optimization are anticipated by consolidating back-office functions and leveraging existing Rockies operating teams.

• General and administrative expense per Boe expected to decrease from $3.55 to $2.71, and lease operating expense per Boe from $18.98 to $18.49.

• The deal is expected to be highly accretive to free cash flow and margins, with material tax synergies from a stepped-up basis.

• Lower operating costs and higher oil weighting will drive higher margins and netbacks per BOE.

• Substantially reduces per Boe costs by adding low-cost, high-margin assets.