Diversified Energy Company PLC (LON/NYSE: DEC) has announced the execution of a conditional purchase and sale agreement for the acquisition of operated natural gas properties located within eastern Texas from a regional operator. Notably, the Assets contain a significant Proved Developed Producing (PDP) component, approximately $68 million, which will be purchased by Diversified.
Concurrently, an active third-party development company with operations in the area will purchase an additional amount of undeveloped acreage with a value of approximately $19 million, the majority of which will be purchased by the third-party development company, with Diversified maintaining only a minority 5% interest for $1 million in consideration. The total purchase price to the Seller, inclusive of both the PDP assets and undeveloped acreage is approximately $87 million before customary purchase price adjustments. The Development company will pay cash consideration of approximately $18 million to directly to the Seller at the closing of the Acquisition.
