Diversified Energy Finalizes Purchase of East Texas Gas Assets

Diversified Energy Company PLC has concluded its acquisition of natural gas properties in eastern Texas. The transaction, initially announced, involved a total purchase price of $69 million, with adjustments bringing the net price to $49 million. The acquisition encompasses prepared and undeveloped assets with PDP reserves of nearly 70 Bcfe and a PDP PV10 valuation of about $89 million.

The acquisition is expected to generate an estimated NTM Adjusted EBITDA of $19 million. To finance the purchase, Diversified issued over 2.3 million new shares and secured a $22 million bank facility. The newly issued shares will soon be listed for trading on the London Stock Exchange and the New York Stock Exchange.

The company’s CEO, Rusty Hutson, Jr., emphasized the operational benefits and synergistic potential of this acquisition, viewing it as a means to enhance operations within Diversified’s Central Region portfolio.