Diversified Energy Company PLC (NYSE: DEC) has inked a conditional purchase and sale agreement to acquire certain operated natural gas properties from a regional operator for $68 million. The assets are located in east Texas.
Furthermore, a third-party development firm has agreed to acquire additional undeveloped acreage from the regional operator for a total consideration of $19 million. DEC has stated that it would acquire a minority 5% stake in the undeveloped acreage for $1 million.
The gross purchase price of the properties was $69 million. The deal is anticipated to be closed in the fourth quarter of 2024. Diversified Energy plans to fund a part of the acquisition by issuing new U.S.-dollar denominated ordinary shares to the regional operator. The new shares issued will amount to approximately $35 million. The remaining part will be financed via new and existing liquidity sources, supported by the collateral available due to the acquired assets.
A substantial part of the acquired properties consists of Proved Developed Producing ("PDP") components. The acquisition includes an estimated 331 net PDP wells. The production from these ...
