Business Context and Reporting Period
Company: Amplify Energy Corp. (formerly Midstates Petroleum Company, Inc.)
Filing Type: Form 8-K (Current Report)
Date: January 21, 2020
Context: The filing discloses the submission of a Quarterly Operating Report to the United States Bankruptcy Court for the Southern District of Texas. This report covers the period from October 1, 2019, through December 31, 2019. The report pertains specifically to the "Closing Debtors" (San Pedro Bay Pipeline Company, Rise Energy Beta, LLC, and Beta Operating Company, LLC) which remained under court supervision following the 2017 Chapter 11 reorganization of Memorial Production Partners LP. Amplify Energy Corp. is the successor reporting company to these entities following a reverse merger completed in August 2019.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a disclosure of the filing of the Quarterly Operating Report (Exhibit 99.1) rather than a presentation of the financial data itself. The text explicitly states that the attached report contains financial information but does not reproduce the figures within the body of the 8-K.
Material Changes
Reporting Scope: The filing notes that for periods after the Final Decree Date (May 30, 2018), receipts and disbursement activity reflect only the transactions of the three Closing Debtors (SPBPL, REB, and BOC).
Corporate Structure: The filing reiterates the August 2019 reverse merger where Midstates Petroleum Company, Inc. merged with Legacy Amplify, resulting in the name change to Amplify Energy Corp. and the designation of Legacy Amplify as the accounting acquirer.
Guidance, Outlook, Risks, and Unusual Items
Cautionary Note on Financial Data: Management explicitly cautions investors not to place undue reliance on the Quarterly Operating Report. The report was prepared solely for court compliance, is unaudited, does not follow U.S. GAAP, and is subject to future adjustment. It is not indicative of the Company's financial condition or operating results as reflected in standard SEC periodic reports.
Forward-Looking Statements: The filing includes standard disclaimers regarding forward-looking statements. Identified risks include:
- Ability to reduce leverage and satisfy debt obligations.
- Need for accretive acquisitions or capital expenditures to maintain a declining asset base.
- Volatility in commodity prices (oil, natural gas, NGLs) and demand.
- Access to capital markets given existing indebtedness.
- Regulatory and political risks, including climate change legislation and hydraulic fracturing regulations.
- Effectiveness of hedging strategies.
Investor Verification Checklist
- Exhibit 99.1: Review the attached Quarterly Operating Report for specific financial figures, as they are not included in the 8-K text.
- GAAP Reconciliation: Verify how the non-GAAP bankruptcy court data reconciles with the Company's audited financial statements in Form 10-K or 10-Q filings.
- Debt Obligations: Confirm the current status of debt obligations for the Closing Debtors versus the consolidated entity.
- Asset Base: Assess the impact of the "declining asset base" mentioned in risk factors on future capital expenditure requirements.
- Merger Accounting: Review the implications of the "reverse merger" accounting treatment on historical comparability of financial data.