On Monday, Roth/MKM upheld its Buy rating and $9.50 price target for Amplify Energy Corp. (NYSE: NYSE:AMPY), following recent environmental concerns. Amplify Energy reported a minor discharge from Platform Elly on Thursday but remains confident that the oil sheen spotted off Huntington Beach, California, on Wednesday, is unrelated to its operations.
The U.S. Coast Guard/Unified Command supported this assessment over the weekend, stating that the characteristics of the discharged produced water did not match those observed from the sheen. Consequently, the Coast Guard has decided to demobilize offshore recovery assets after an overflight on Saturday did not detect any sheen.
Amplify Energy has been actively collaborating with the Unified Command, the U.S. Coast Guard, and other relevant authorities to address the situation. The company has been transparent in its communications and is providing necessary support to the ongoing investigation.
Despite the environmental concerns, Amplify Energy's Beta field operations and development program continue without interruption. The company's swift response and the Coast Guard's findings have helped to mitigate concerns about potential disruptions to its activities.
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