Diversified Energy Completes Crescent Pass Acquisition

Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has finalized the acquisition of high-working interest natural gas properties and related facilities in eastern Texas from Crescent Pass Energy. The purchase, priced at $106 million before adjustments, nets to $101 million after adjustments.

The acquired assets boast PDP reserves of approximately 170 Bcfe and a PDP PV10 value of around $155 million. Current net production is 38 MMcfepd. The expected NTM Adjusted EBITDA stands at $26 million, giving the acquisition a purchase price multiple of 3.8x.

The transaction includes issuing 2,249,650 new US-dollar denominated ordinary shares to Crescent Pass Energy and paying $71 million in cash. This amount was drawn from a senior secured bank facility supported by the acquired assets and existing liquidity.

CEO Rusty Hutson, Jr. expressed enthusiasm for the acquisition, noting its benefits for the company’s growth and integration strategies.