Independent oil company Amplify Energy Corp. has announced the closing of its previously disclosed transaction to divest its Oklahoma assets for a contractual amount of $92.5mn, subject to standard post-closing adjustments. This transaction is part of a broader strategy aimed at rationalising its asset base and strengthening its financial position.
Debt reduction and credit facility adjustment
Proceeds from the Oklahoma sale, combined with funds from its East Texas asset divestiture, have enabled the company to eliminate all outstanding debt under its current revolving credit facility. Amplify Energy now expects to finalise an amendment to this facility by December 31, reflecting the company’s redefined operational scope following the disposal of non-core assets.
According to Chief Executive Officer Dan Furbee, these transactions align with the previously announced strategic plan to focus on assets with higher value creation potential. The company is now concentrating its development efforts on its Beta field in California and Bairoil in Wyoming.
Cost reduction and operational refocus
The company also anticipates a significant decrease in general and administrative (G&A) expenses following the completion of the transactions. This cost optimisation is expected to enhance future profitability across the retained operations, which are now concentrated in targeted geographies and projects.
Amplify Energy expressed appreciation for the efforts of its internal teams in executing the transactions and maintaining daily operations. The company has not provided a timeline for any potential additional development at the retained sites.
