Amplify Energy Corp. (NYSE: AMPY) ('Amplify' or the 'Company') announced today its operating and financial results for the fourth quarter 2019, update to its dividend program, year-end 2019 proved reserves and provided guidance for the first quarter and full year 2020.

Key Highlights

During the fourth quarter this year we generated the following: Daily production of 29.9 MBoe/d, which was within the range of quarterly guidance

Net cash provided by operating activities of $21 million

Adjusted EBITDA of $27 million

Free cash flow of $11 million

Returned nearly $23 million of capital to shareholders through share repurchase program and December 2019 dividend payment

Pro forma (1) Net Debt to Last Twelve Months ('LTM') EBITDA of 2.4x as of December 31, 2019

As of February 28, 2020, net debt was $274 million, inclusive of $6 million of cash on hand

Current hedge book net positive value of $58 million as of February 28, 2020

Amplify's year-end 2019 proved developed reserves had a PV-10 value of approximately $705 million, which is 63% or $272 million higher than the Company's current enterprise value of approximately $433 million(2).

Retained Evercore as its financial advisor to actively pursue consolidation transactions focused on enhancing Amplify's low decline asset base, further strengthening the balance sheet and maximizing the Company's dividend yield and return of capital to its investors

'As with most energy producers, Amplify is beginning 2020 in the face of significant headwinds following the recent commodity price decline,' said Ken Mariani, President and Chief Executive Officer of Amplify. 'While the margins on our long-life, low-decline asset base are sensitive to commodity price fluctuations, Amplify took prudent and proactive steps to mitigate that risk by hedging more than 60% of total production and 77% of crude oil prior to the recent price decline.'

Mr. Mariani continued, 'In regards to our recent fourth quarter, Amplify's results were below our expectations due to temporary issues, including startup delays with the Bairoil plant expansion and incremental submersible pump failures in Oklahoma due to weather and power fluctuations. We believe that these operating issues have all been resolved going into 2020; however, in light of the significant reductions in commodity prices in the first quarter, we have carefully reevaluated our capital return and development programs. While these issues may not be permanent, we believe the best course of action at this time is to conservatively manage Amplify's balance sheet and liquidity to maximize long-term value for our stakeholders. As such, we have decided to reduce our first quarter 2020 dividend to $0.10 per share, which while reduced, still provides for an effective dividend yield of approximately 10%, which is among the highest in our industry. We have also decided to defer certain capital projects that were planned for later in the year and have set our initial 2020 capital budget between $40 million and $52 million. We believe that this program is prudent in the current price environment and a cost-effective way to maximize production, reduce costs and continue to provide a robust dividend yield to our shareholders. Further, this program enables the Company to drive shareholder value by continuing to execute its corporate consolidation strategy. As a key part of that strategy, I am pleased to announce we have retained Evercore as our financial advisor to help us evaluate new consolidation transactions. While many E&Ps are facing similar issues in the current price environment and market volatility, we believe that Amplify is uniquely positioned to take advantage of the opportunities this market creates, and we look forward to updating shareholders on our progress throughout the year.'

Pro forma numbers include Amplify and Midstates Petroleum Company, Inc. ('Midstat

Dividend and Share Repurchase Program Update

Amplify's quarterly dividend of $0.10 per share is expected to be paid on March 30, 2020 to shareholders of record as of the close of business on March 16, 2020. This equates to a dividend yield of approximately 10% based on the closing share price of $4.18 on February 28, 2020.

Amplify also initiated a $25.0 million open market share repurchase program at the closing of the merger with Midstates on August 6, 2019. As of February 28, 2020, the Company had repurchased approximately 4.2 million shares of common stock at an average price of $5.94 per share for a total cost of approximately $24.9 million (inclusive of fees).

Revolving Credit Facility and Liquidity

As of February 28, 2020, Amplify had total debt of $280 million under its revolving credit facility, with a current borrowing base of $450 million. Amplify's liquidity was $176 million as of February 28, 2020, consisting of $6 million of cash on hand and available borrowing capacity of $170 million. The next regularly scheduled borrowing base redetermination is expected to occur in April 2020.

Production Update

During the fourth quarter of 2019, Amplify produced 29.9 MBoe/d, which was at the low end of our guidance range for the quarter. These results were primarily the result of ordinary course start-up complications following completion of the Bairoil plant expansion and incremental wells temporarily offline in the Mississippi Lime region for workovers as Amplify focuses on improving base production declines. The company expects that many of the Mississippi Lime wells will be more cost effective following these workovers and will help drive production efficiencies in 2020.

The Bairoil plant expansion project came online in late October as anticipated, but due to start-up and compressor issues, the Company did not achieve consistent runtime until mid-January. Bairoil also experienced compressor outages, unrelated to the plant expansion, that further reduced CO2 processing capacity and had a negative impact on production. Although overall results were below expectations due to extended periods of low CO2 throughput, material increases in crude oil production at Bairoil were achieved intermittently during the fourth quarter when run times were stable. Despite these initial delays, Amplify is encouraged by the potential observed when the plant expansion was fully operational and remains confident that the expansion project will achieve the expected oil production increase of approximately 900 Bbls/d over the next twelve months.

Mississippi Lime production was also below our expectations, as power and weather events, contributed to incremental submersible pump failures and temporarily increased the number of offline wells during the quarter. To alleviate the production impact from offline wells, Amplify increased workover rig activity, operating between two to three workover rigs during November and December to get the wells back online and improve future well efficiency. As a result of these efforts, production has stabilized, and the backlog of offline wells has been substantially reduced heading into 2020.

Operations and Capital Spending Outlook

Amplify's capital spend for the fourth quarter was approximately $12 million. Capital expenditures were at the high end of guidance due to additional costs related to the Bairoil expansion start-up, Beta capital workovers and increased development activity at the Company's non-operated Eagle Ford assets.

Amplify's 2020 capital program is anticipated to be between $40 million and $52 million, with a midpoint estimate of $46 million.

On an area-by-area basis, Amplify's largest capital allocation in 2020 will be in Oklahoma, where Amplify anticipates spending approximately $14 million for additional rod lift conversions and ESP (electric submersible pump) optimizations. The rod lift conversion project initiated in late 2018 has been successful in significantly reducing operating expenditures and recurring maintenance costs.

Amplify anticipates spending approximately $11 million at Beta, primarily on capital workovers to return production from offline wells, along with facility maintenance.

In the Eagle Ford, Amplify has budgeted a $11 million capex program that includes drilling and completing seventy-eight gross (1.7 net) wells in 2020. As of year-end 2019, Amplify had received proposals for sixty gross (1.3 net) well projects. The substantial increase in development in this area is a testament to the superior well return potential from Amplify's acreage in the core of Karnes County, Texas.

At Bairoil, Amplify has budgeted approximately $7 million in 2020, split equally between facility work and capital workover activity.

Lastly in East Texas, Amplify has budgeted $2 million for recompletions, saltwater disposal and facility projects and an additional $1 million to complete the non-operated Viper 2 Jones well, which offsets Amplify's acreage.

2019 Year-End Proved Reserve Update

Proved reserves at December 31, 2019 were approximately 163 MMBoe, of which approximately 61% were crude oil and natural gas liquids and 39% were natural gas. Approximately 80% of proved reserves were classified as proved developed with a total standardized measure of discounted future net cash flows of approximately $917 million.

First Quarter and Full Year 2020 Guidance

The following guidance included in this press release is subject to the cautionary statements and limitations described under the 'Forward-Looking Statements' caption at the end of this press release. Amplify's 2020 guidance is based on its current expectations regarding capital expenditure levels and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products.

Hedging Update

Since Amplify's previous hedge update on November 6, 2019, the Company has made opportunistic additions to its hedge position between 2020 and 2022. As of February 28, 2020, Amplify's mark-to-market value was a net asset position of $58 million and based on the midpoint of full year 2020 guidance the Company has hedged approximately 61% of 2020 production. The following table reflects the hedged volumes under Amplify's commodity derivative contracts and the average fixed or floor prices at which production is hedged for January 2020 through December 2022, as of March 5, 2020.

Amplify posted an updated hedge presentation containing additional information on its website, www.amplifyenergy.com, under the Investor Relations section.

Annual Report on Form 10-K

Amplify's financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2019, which Amplify expects to file with the Securities and Exchange Commission on or before March 5, 2020.

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. Amplify's operations are focused in Oklahoma, the Rockies, offshore California, East Texas / North Louisiana and South Texas.

Forward-Looking Statements

This press release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Amplify expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as 'will,' 'would,' 'should,' 'could,' 'expect,' 'anticipate,' 'plan,' 'project,' 'intend,' 'estimate,' 'believe,' 'target,' 'continue,' 'potential,' the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Amplify believes that these statements are based on reasonable assumptions, but such assumptions may prove to be inaccurate. Such statements are also subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Amplify, which may cause Amplify's actual results to differ materially from those implied or expressed by the forward-looking statements. Please read the Company's filings with the Securities and Exchange Commission, including 'Risk Factors' in its Annual Report on Form 10-K, and if applicable, its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other public filings and press releases for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. All forward-looking statements speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Amplify undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA and Free Cash Flow. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. Amplify's non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify's non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income or loss, plus interest expense; income tax expense; depreciation, depletion and amortization; impairment of goodwill and long-lived assets; accretion of asset retirement obligations; losses on commodity derivative instruments; cash settlements received on expired commodity derivative instruments; losses on sale of assets; unit-based compensation expenses; exploration costs; acquisition and divestiture related expenses; amortization of gain associated with terminated commodity derivatives, bad debt expense and other non-routine items, less interest income; gain on extinguishment of debt; income tax benefit; gains on commodity derivative instruments; cash settlements paid on expired commodity derivative instruments; gains on sale of assets and other, net and other non-routine items. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify's financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify's industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify's indebtedness and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash provided by operating activities.

Free Cash Flow. Amplify defines Free Cash Flow as Adjusted EBITDA, less cash income taxes; cash interest expense and total capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify's investors since it serves as an indicator of the Company's success in providing a cash return on investment.

Contact:

Martyn Willsher

Tel: (832) 219-9047

Email: martyn.willsher@amplifyenergy.com

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