Diversified to Acquire Complementary, High-Quality, Low-Decline Producing Assets

Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has announced a conditional purchase and sale agreement to acquire high-working interest, operated natural gas properties in eastern Texas from Crescent Pass Energy. The acquisition will be funded through a combination of issuing 2.4 million new ordinary shares to the seller and a senior secured bank facility supported by the acquired assets.

The purchase price stands at $106 million, with an estimated net price of $100 million. The assets have a current net production of 38 MMcfepd with low annual declines of approximately 9%. The acquisition aims to close in the third quarter of 2024.

Key assets include 827 net operated PDP wells, over 500 miles of pipelines, and associated facilities. The proximity to Diversified’s existing East Texas assets offers potential for operational efficiencies and additional cost savings.

CEO Rusty Hutson, Jr. emphasized the strategic fit with current operations and highlighted the financial flexibility provided by the NYSE listing. The transaction is expected to enhance margins and grow free cash flow.