Amplify Energy Corp. and Midstates Petroleum Co. Inc. have agreed to a merger pursuant to which Amplify will merge with a subsidiary of Midstates in an all-stock deal.
The combined company has an enterprise value of $729 million before synergies with pro forma fourth-quarter 2018 production of 40 million boe/d. Annual general and administrative synergies of at least $20 million are expected, the companies said, and the low-decline assets are expected to generate 2019 levered free cash flow of at least $65 million.
Amplify stockholders will receive 0.933 of a share of newly issued Midstates common stock for each share of Amplify. The combined company will be based in Houston.
Ken Mariani, Amplify’s president and chief executive officer, will lead the combined company and the new board of directors will include members from the boards of each company.
The agreement, unanimously approved by the participating directors of both boards, is expected to close in this year’s third quarter at which time Amplify and Midstates stockholders will each own 50% of the outstanding shares of the combined company.
