Amplify Energy Corporation announced a revision to its merger agreement with Juniper Capital’s upstream companies in the Rocky Mountains, under which Juniper will contribute an additional $10 mn in cash. This update follows engagement with shareholders and aims to further reduce the net debt of the merged company. Upon closing, Amplify plans to issue approximately 26.7 million ordinary shares and assume net debt estimated at $133 mn.
Juniper strengthens financial position in merger
The revised terms were recorded in Amendment No. 1 to the merger agreement dated 14 April. Amplify stated its intention to file supplemental materials with the Securities and Exchange Commission (SEC) to reflect this change. Martyn Willsher, President and Chief Executive Officer of Amplify, said the revision demonstrates both parties’ confidence in the long-term value potential of the transaction. Edward Geiser, Managing Partner of Juniper, explained the additional investment as necessary to enhance liquidity amid market volatility.
Extended hedge coverage against price risks
In response to declining oil prices, Amplify and Juniper highlighted the scope of their hedging strategies. For 2025, Amplify has hedged 80 to 85% of its proved developed producing oil volumes, and 40 to 45% for 2026. Juniper reported similar coverage levels, between 65 and 70% for 2025 and between 50 and 55% for 2026. The net present value of these hedge positions is approximately $25 mn for Amplify and $14 mn for Juniper, based on current strip prices.
Updated valuation of Juniper’s oil assets
Amplify also disclosed an update to Juniper’s audited reserves. Based on a WTI crude price of $60 per barrel and Henry Hub natural gas at $3.50 per mmbtu, the present value (PV-10) of total proved reserves stands at $356 mn. The combined value of developed reserves ($230 mn) and the hedge book ($14 mn) totals $244 mn, compared to pro forma net debt of approximately $123 mn.
Operational flexibility and cash flow outlook
Amplify’s leadership emphasised the merger provides the combined entity with significant flexibility to adjust capital expenditure in response to commodity cycles. With a low-decline asset base from Amplify and high-margin assets from Juniper, supported by strong hedge positions, the company anticipates solid cash flow generation beginning in 2025.
