Following the announcement of the mutual termination of its merger agreement with Juniper Capital Advisors, L.P., shares of Amplify Energy Corp. (NYSE: AMPY) saw a significant boost this morning, rising 10.41% in pre-market trading to $2.97.
Market Volatility & Termination of Agreement
Citing “extraordinary volatility in the market” as a major cause, Amplify Energy disclosed that it and Juniper Capital had reached a mutual agreement to end the previously planned merger.
Under the terms of the Termination Agreement, Juniper will receive a cash compensation of $800,000 in lieu of the termination fee that was needed under the original merger conditions.
Cancelled Special Stockholders’ Meeting
Amplify Energy also stated that its special meeting of stockholders will not be held in light of the termination. As a result, Amplify has retracted the recommendations made in its final proxy statement, which was submitted to the Securities and Exchange Commission (SEC) on March 4, 2025.
Alongside the announcement of its first-quarter profits, Amplify said it will give an update on its business outlook, including capital allocation plans and free cash flow forecasts. AMPY is still dedicated to investigating strategic options, such as possible portfolio optimization initiatives, that are meant to increase shareholder value.
Previous Amendments and Special Meeting Developments
Earlier this month, Amplify Energy had adjourned its reconvened Special Meeting of Stockholders concerning the proposed merger with Juniper Capital’s upstream Rocky Mountain portfolio companies.
The meeting was originally scheduled to resume on May 1, 2025, however no votes or decisions were taken at the April 23, 2025 session. The purpose of the delay was to give more time for proxy solicitation and stakeholder involvement.
Notably, prior to the termination, the merger terms had been amended to include an additional $10 million cash contribution from Juniper, aimed at reducing the combined entities’ net debt burden. Amplify Energy now looks ahead to independent operations and strategic reassessments as it navigates the current market landscape.
