Amplify Energy Corp., Houston, and Juniper Capital Advisors LP have agreed to terminate their previous plan to merge.
Amplify Energy, in a release Apr. 25, cited “extraordinary volatility in the market” as the reason for the termination agreement. Houston-based energy investment firm Juniper is receiving a cash payment of $800,000 in lieu of any termination fee which might have been otherwise payable pursuant to the merger agreement, Amplify Energy said.
The original plan, announced in January, was for Amplify to merge with certain Juniper Capital upstream Rocky Mountain portfolio companies which own oil-weighted producing assets and leasehold interests in the Denver-Julesburg basin and Powder River basins.
Just last week, the companies amended the terms of the agreement, saying Juniper would contribute an incremental $10 million of cash to further reduce the net debt of the combined companies.
The January agreement called for Amplify Energy to issue Juniper about 26.7 million shares of Amplify common stock and assume about $133 million in net debt. Amplify shareholders were to retain about 61% of Amplify’s outstanding equity.
Amplify said it 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.
