Finance & Investing | General News | Financial Trouble | Capital Markets

Amplify Energy Regains Compliance with NYSE

Share Print Bookmark    |    Wednesday,July 14,2021

Amplify Energy Corp. has received notice from the NYSE that it had regained compliance with the continued listing standards set forth in Item 802.01B of the NYSE Listed Company Manual.

As previously disclosed, on September 4, 2020, Amplify received notice from the NYSE that the Company was not in compliance with NYSE listing standard 802.01B because at such time the Company's average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its shareholders' equity was less than $50 million.

PPP Loan Forgiveness

In addition, on June 22, 2021, the Company received full forgiveness from the U.S. Small Business Administration of its entire loan under the Paycheck Protection Program, established as part of the Coronavirus Aid, Relief, and Economic Security Act. The forgiveness of the loan extinguishes approximately $5.5 million of debt from the Company's balance sheet. As of June 30, 2021, Amplify had net debt of approximately $216 million, with $235 million outstanding under the revolving credit facility and $19 million of cash on hand.

Martyn Willsher, Amplify's President and Chief Executive Officer, commented, "Our near-term focus remains on improving our balance sheet and maximizing free cash flow. We expect that the current commodity price environment, coupled with the low capital intensity of our long-lived, low-decline asset base, will deliver strong free cash flow for the remainder of the year and will accelerate in 2022, rapidly improving our leverage ratio to less than 1.5x by the end of 2022. We believe that our continuous focus on free cash flow generation and the substantial delevering of our balance sheet will provide future optionality to allocate additional capital towards asset reinvestment, accretive transactions, and return of capital initiatives."