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HOUSTON - Amplify Energy Corp. (NYSE:AMPY), an independent oil and natural gas company with a market capitalization of $151 million and current stock price of $3.74, announced today that Institutional Shareholder Services (ISS), a prominent proxy advisory firm, has recommended shareholders to vote in favor of its proposed merger with Juniper Capital’s upstream Rocky Mountain portfolio companies. According to InvestingPro analysis, the company currently operates with a significant debt burden, making this merger particularly significant for its future prospects.
The endorsement from ISS comes after a thorough review, with the firm acknowledging the potential benefits of the merger. Amplify Energy’s management expressed their agreement with ISS’s assessment, highlighting the anticipated positive outcomes for shareholders. The company’s current financial metrics, including an EBITDA of $74 million and a P/E ratio of 12.2, suggest room for operational improvement that this merger could address.
According to the company’s statement, the merger is expected to drive significant increases in free cash flow per share, from $0.50 to over $0.70 for the year 2025, and nearly double the total proved reserve value to approximately $1.3 billion. The transaction is also projected to enhance the company’s portfolio flexibility, reduce operating costs, and unlock operating synergies, leading to a 40% increase in pro-forma Adjusted EBITDA per BOE and a reduction in pro-forma G&A per BOE by more than 20%.
Amplify Energy believes the merger will not only preserve but also enhance shareholder value by improving financial resilience and providing the flexibility to reduce leverage and return capital to shareholders.
The Special Meeting of Shareholders for voting on the merger proposals is scheduled to take place virtually on April 14, 2025. Shareholders have been provided with proxy materials detailing the methods for voting.
This merger is part of Amplify Energy’s broader strategy to grow and diversify its asset base, which currently spans Oklahoma, the Rockies, offshore Southern California, East Texas/North Louisiana, and the Eagle Ford.
The information discussed in this article is based on a press release statement issued by Amplify Energy Corp.
In other recent news, Amplify Energy has reported its fourth-quarter 2024 earnings, revealing a significant shortfall compared to analyst expectations. The company posted an earnings per share of -$0.19, falling short of the anticipated $0.30, with revenue reaching $69.02 million, below the expected $78.46 million. Despite these challenges, Amplify Energy’s full-year net income stood at $13 million, supported by a 48% increase in adjusted net income from the previous year. In a strategic move, Amplify Energy announced plans to acquire Juniper Capital’s upstream Rocky Mountain portfolio companies, a merger expected to enhance free cash flow per share and boost total proved reserve value by approximately 89%. This acquisition is anticipated to close in the second quarter of 2025 and is projected to provide operational efficiencies and growth opportunities for Amplify Energy. Analyst firm Alliance Global Partners engaged with Amplify during the earnings call, discussing the company’s plans for the Beta field and future drilling activities. Amplify Energy also plans significant capital investments in 2025, with a budget of $70-80 million, including $30 million allocated to its Beta development program. These developments reflect Amplify Energy’s ongoing efforts to optimize its portfolio and improve operational resilience.
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