Diversified Energy Announces Joint Acquisition of East Texas Assets

Diversified Energy Company PLC has signed a conditional purchase agreement to acquire natural gas properties in eastern Texas. The acquisition, valued at approximately $87 million, involves a significant Proved Developed Producing (PDP) component worth $68 million, which will be purchased by Diversified.

An additional $19 million of undeveloped acreage will be acquired by a third-party development company, leaving Diversified with a minority 5% interest. The total acquisition cost, including the PDP assets, will be funded through the issuance of new shares and existing liquidity.

The Acquisition highlights include a gross purchase price of $69 million and a current PDP net production of 21 MMcfepd. The assets are expected to add 70 Bcfe of PDP reserves with a PV-10 value of $89 million. The company aims to close the deal in the fourth quarter of 2024.

CEO Rusty Hutson, Jr. expressed confidence in the acquisition, emphasizing its strategic value in expanding Diversified's footprint and enhancing margins.