(Reuters) – Shares in oil and natural gas company Amplify Energy Corp. plunged nearly 63% and was heading for its worst trading day after an oil rig operated by a business unit was linked to a "catastrophic" oil spill in southern California.
The US Coast Guard, which is leading a clean-up operation involving federal, state and city agencies, on Sunday announced a 24-hour investigation into the origin of the spill, which has spread over 13 square kilometers of the Pacific Ocean.
Kim Carr, the mayor of Huntington Beach, the beachfront city near Los Angeles that carries most of the emissions, said at a news conference that the rig is operated by Beta Offshore, California's subsidiary of Houston. -based Amplify Energy.
Amplify CEO Martyn Willsher said at a news conference that the pipeline had been shut down and the remaining oil sucked out. He said divers were still trying to determine where and why the spill occurred.
Roth Capital Partners suspended its target price on Amplify Energy.
“Until we can have a discussion with management to confirm that this comes from an AMPY property, the extent of the spill, the estimated cost of remediation and any insurance coverage that may apply, we temporarily suspend our target price, our estimates and move our rating to Neutral, ”said the broker in his note. [1