Memorial Production Partners LP said May 4 it successfully completed its financial restructuring, emerging from Chapter 11 as a new corporation named Amplify Energy Corp.

Through the financial restructuring, the company said it eliminated more than $1.3 billion of debt from its balance sheet and launched its transition to a corporation from a conventional production-based MLP. The move to corporation was for U.S. federal income tax purposes, according to the company release.

Additionally, Amplify said it initiated a process to explore and evaluate potential strategic alternatives, which will include marketing certain noncore assets for sale. The company engaged Jefferies LLC as its lead adviser for the strategic alternatives process.

Amplify's plan includes divesting noncore assets, accelerating investment in key horizontal growth plays and focusing on becoming a low-cost operator, according to a statement from the company's new board of directors.

"This is an important day for our company and our stakeholders. In addition to strengthening our financial position, we have made great strides organizationally that will position the Company to generate significant free cash flow, drive growth and achieve long-term success," William J. Scarff, Amplify's president and CEO, said in a statement. "We are very excited about Amplify's prospects as we transition from an upstream MLP to a growth-oriented E&P company."

At year-end 2016, Amplify's asset position included about 394,000 gross (273,000 net) acres with operations in East Texas/Louisiana, the Rockies, South Texas and offshore California. The company said 72% of its assets were classified as proved developed producing.

In addition, Amplify's total estimated proved reserves were 1.2 trillion cubic feet equivalent (Tcfe), of which about 62% were liquids, with a total proved PV-10 value of $914 million at April 13 pricing.

During fourth-quarter 2016, the company's average net production was 205.5 MMcfe/d, implying a reserve-to-production ratio of about 16 years.

Amplify also said its asset position includes a "significant inventory to grow production," comprised of upside drilling locations with a principal focus on horizontal drilling opportunities in the East Texas Cotton Valley and the Eagle Ford Shale in South Texas, as well as directional drilling opportunities in offshore California.

Following the completion of its restructuring, Amplify's reserve-based revolving credit facility was amended and restated and the aggregate maximum revolving lending commitments under the revolving credit facility reduced to $1 billion, with an initial available borrowing base of $490 million.

The company's total debt outstanding upon emergence will be $430 million and cash on hand will be about $14 million, providing total liquidity of $72 million.

Amplify said it's also in the process of registering its shares on the Over-The-Counter Market and plans to remove its shares from the NASDAQ. The company will have 25 million shares of its common stock outstanding following the completion of its restructuring.

Perella Weinberg Partners LP was Amplify's financial adviser and Weil, Gotshal & Manges LLP was its legal counsel. Miller Buckfire & Co. LLC was financial adviser, and Davis Polk & Wardwell LLP was legal counsel, to an ad hoc group of the holders of the senior unsecured notes of Memorial Production Partners LP.