Amplify Energy (NYSE:AMPY) kept its rally going Monday morning after scrapping its planned merger with Juniper Capital Advisors late Friday. The stock closed Friday at $2.69, up 5.91% on the day, and was up another 14.5% in Monday's pre-market session around 8:51 a.m. ET, easily beating the broader energy sector's moves.
The deal would have given Amplify a bigger footprint in the Rocky Mountains, adding 19 million barrels of proved developed reserves and 287,000 net acres. In exchange, Amplify had planned to issue about 26.7 million new shares to Juniper.
But with what it called "extraordinary volatility" in the market, Amplify decided to walk away. Instead, the company said it's looking at other ways to boost shareholder value, possibly by reshaping its portfolio, though no firm plans were outlined.
By pulling out of the deal, Amplify seems to be playing it safe amid shaky market conditions. The strong stock move since Friday signals that investors may be backing that call at least for now.
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