Amplify Energy and Juniper Capital announce merger to expand Rocky Mountain assets

In a landmark move set to reshape the Rocky Mountain energy sector, Amplify Energy Corporation (NYSE: AMPY) has announced a definitive merger agreement with Juniper Capital‘s upstream portfolio companies. This transformational merger consolidates oil-rich assets across key basins, boosting Amplify’s scale, efficiency, and potential for future growth.

The merger will see Amplify Energy issuing 26.7 million shares of its common stock to Juniper Capital and assuming $133 million in net debt. Post-transaction, Amplify’s shareholders will retain 61% equity in the combined entity, with Juniper holding the remaining 39%. Expected to close in the second quarter of 2025, the deal is subject to customary regulatory and shareholder approvals.

How Will This Merger Transform Amplify Energy’s Portfolio?

Expansion of Oil-Weighted Reserves

The merger adds approximately 19 million barrels of oil equivalent (MMBoe) in proved developed reserves, valued at over $330 million. Additionally, the acquisition brings 287,000 net acres in the DJ and Powder River Basins. Of this acreage, 115,000 are operated and held by production, with an impressive 90% average working interest. These high-value assets will allow Amplify to expand its production capabilities and maintain long-term operational flexibility.

Enhanced Daily Production Metrics

The acquired assets currently produce approximately 7,900 barrels of oil equivalent per day (Boe/d), with 81% being oil. These figures significantly enhance Amplify’s production portfolio and strengthen its cash flow generation. The low operating costs of these assets align with Amplify’s strategy of optimizing efficiency across its operations.

What Are the Strategic Benefits of the Amplify-Juniper Merger?

Operational Synergies and Efficiency Gains

Amplify Energy aims to integrate Juniper’s assets seamlessly into its existing portfolio, minimizing overhead costs while enhancing operational efficiency. The merger is expected to deliver substantial synergies, including tax savings from a stepped-up basis and streamlined management of the combined assets.

Long-Term Organic Growth Potential

The merger provides Amplify with hundreds of identified high-quality drilling locations in formations such as Codell in the DJ Basin and Turner, Parkman, and Niobrara in the Powder River Basin. These drilling opportunities complement Amplify’s existing inventory and promise sustained growth.

Future Consolidation Opportunities

The expanded acreage and operational footprint position Amplify Energy as a key consolidator in the Rocky Mountain region. The company plans to explore accretive bolt-on acquisitions from smaller private companies and non-core assets of larger operators.

Expert Insights on the Merger’s Potential

Martyn Willsher, President and CEO of Amplify Energy, emphasized the merger’s transformative impact. “This partnership adds a diverse, oil-rich region to our portfolio and significantly enhances our cash flow potential. With Juniper’s complementary assets and our legacy operations, we are well-positioned for growth in the Rocky Mountain region.”

Edward Geiser, Managing Partner of Juniper Capital, noted the strategic alignment between the two companies. “The combination of our Rockies assets with Amplify’s portfolio creates a unique public company with the flexibility to pursue both organic growth and consolidation in highly economic areas. We look forward to being long-term investors in this exciting venture.”

Leadership and Governance Post-Merger

Juniper Capital’s Managing Partner Edward Geiser and partner Josh Schmidt will join Amplify’s Board of Directors, replacing two existing members. Amplify’s current management team will lead the combined company, with plans to recruit additional operational staff to oversee the newly acquired Rockies assets.

Chris Hamm, Chairman of Amplify Energy, welcomed the changes to the board, stating, “The Juniper team brings extensive experience, particularly in strategic consolidations. Their expertise will be invaluable as we work to maximize shareholder value in this new chapter.”

Advisors and Closing Timeline

Financial and legal advisors for the deal include Houlihan Lokey Capital, Inc. and Kirkland & Ellis LLP for Amplify Energy, and Wells Fargo and Gibson, Dunn & Crutcher LLP for Juniper Capital. The merger is anticipated to close in Q2 2025, pending regulatory approvals.

Why This Merger Matters in the Current Energy Landscape

The merger reflects a broader trend of consolidation in the energy sector, as companies seek to achieve scale and efficiency in a challenging economic environment. With oil prices remaining volatile, this strategic alignment allows Amplify Energy to better navigate market fluctuations while capitalizing on untapped growth opportunities in the Rockies.