Diversified Energy Completes Acquisition and Expands Credit Facility

Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has finalized the acquisition of a proportionate working interest in certain assets in its Central Region from Oaktree Capital Management. The $410 million transaction, adjusted to $377 million, includes PDP reserves valued at $462 million and current net production of 122 MMcfepd.

Concurrent with the acquisition, Diversified increased its revolving credit facility by $80 million to $385 million, resulting in an estimated post-transaction liquidity of $130 million. CEO Rusty Hutson, Jr. emphasized the strategic importance of the acquisition and the support from financial partners.

The new assets are expected to generate an estimated 2024 Adjusted EBITDA of $126 million, with ~60% of production hedged at an average price of $3.89/MMBtu. The consideration for the acquisition involves $83 million in deferred cash payments and the assumption of $120 million of Oaktree’s debt.