Amplify Energy terminated a multi-basin Rockies acquisition with Juniper Capital, citing “extraordinary volatility in the market,” the company said April 25.
It was called a “transformational combination” when Amplify announced the transaction as markets opened on Jan. 15.
The deal with Juniper would have added 287,000 net acres in the oil-weighted Denver-Julesburg (D-J) and Powder River Basins, around 115,000 of which were operated and HBP.
The acquired assets produced 7,900 boe/d (81% oil, 90% liquids) as of third-quarter 2024.
Under the original merger terms, Amplify would have issued 26.7 million shares to Juniper and assume $133 million in net debt.
Based on Amplify’s closing price of $6.48 per share on Jan. 14—the day before the announcement—the equity portion of the Juniper deal was valued at around $173 million, excluding debt.
RELATED
Amplify to Add D-J, Powder River Assets in Merger Agreement with Juniper Capital
But circumstances have changed for Amplify, and most U.S. oil producers, since that time.
Amplify shares have plunged 58% since announcing the deal, closing at $2.69 per share on April 25.
Based on today’s closing price of $2.69 per share, the equity portion of the deal would be valued at about $72 million.
Juniper will receive an $800,000 cash payment in lieu of any other payable transaction fee, Amplifiy said.
“Amplify intends to provide an update on the state of its business, including capital allocation and free cash flow outlook in the current macroeconomic environment, when it announces first quarter earnings,” the company said.
WTI crude prices have collapsed $10/bbl over the past month due to tariff trade uncertainty, slowed global demand and OPEC+ barrels coming back online.
WTI averaged $62.92 during the week ended April 18.
Permian producers Matador Resources and Ring Energy this week slashed D&C budgets due to lower oil prices.
RELATED
Bearishness Plagues Oil as Matador Cuts Capex, Production Outlook