HOUSTON, June 24, 2019 (GLOBE NEWSWIRE) — Amplify Energy Corp. (“Amplify” or the “Company”) (OTCQX: AMPY) announced today the release of $90 million from the Beta Decommissioning Trust account. Following the release, Beta’s decommissioning obligations remain fully supported by A-rated surety bonds.
“We are pleased to be able to announce the release of $90 million of unencumbered cash that was previously held in the Beta trust,” said Ken Mariani, Amplify’s President and Chief Executive Officer. “The Board and management will determine the best use of the Beta proceeds, which may include some combination of potential investments in the Beta field or other predictably high ROIC projects, debt reduction, share repurchases and/or dividends. While this cash will be utilized to generate shareholder returns in the near-term, Amplify is fully committed to safely and responsibly managing the Beta Field for the long-term, including providing for all future decommissioning liabilities associated with these facilities.”
Amplify’s net debt position as of March 31, 2019 was $239 million, pro forma for the release of the Beta trust cash, net debt would be reduced to $149 million, resulting in pro-forma Net Debt / LTM Adjusted EBITDA of 1.1x. Including the impact of the pending merger with Midstates, the pro-forma Net Debt for the consolidated company would be $207 million as of March 31, 2019 with Net Debt / LTM Adjusted EBITDA of 0.9x. Amplify (including pro forma for the Midstates merger) will continue to generate significant free cash flow which is expected to further drive down leverage on a go forward basis.
About Amplify Energy
Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. The Company’s operations are focused in the Rockies, offshore California, East Texas / North Louisiana and South Texas. For more information, visit www.amplifyenergy.com.