Diversified Energy Company successfully acquired a significant working interest in assets located in its central region from Oaktree Capital Management. This $410 million transaction, adjusted to $377 million, includes Proved Developed Producing (PDP) reserves valued at $462 million and current net production rates of 122 million cubic feet per day.
Alongside this acquisition, Diversified Energy increased its revolving credit facility by $80 million, bringing it to a total of $385 million. This adjustment results in an estimated post-transaction liquidity of $130 million. CEO Rusty Hutson, Jr. highlighted the strategic importance of this acquisition and the strong support from their financial partners.
The newly acquired assets are projected to generate an estimated adjusted EBITDA of $126 million in 2024, with about 60% of production hedged at an average price of $3.89 per MMBtu. The acquisition terms include $83 million in deferred cash payments and the assumption of $120 million of Oaktree’s debt.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
