Diversified Energy Company announced the sale of some of its undeveloped land in Oklahoma to an unnamed buyer for about $16 million.
The deal involves around 22,000 acres of land in the Central Region, where Diversified has a large presence. The company said the sale was part of its strategy to focus on its core operated properties with proven reserves and cash flow, and to unlock additional value from its portfolio by selling non-core and undeveloped assets.
The sale proceeds will boost Diversified’s liquidity and enable it to pursue other opportunities to grow its business and generate free cash flow for shareholders. The company added that it did not assign any value to the land when it acquired it in previous transactions, so the sale represents a pure gain for the company.
Diversified Energy Company plc (LON:DEC), formerly Diversified Gas & Oil plc, is a gas and oil production company operating in the Appalachian Basin in the United States.