28th Sep 2022 09:11
(Alliance News) - Diversified Energy Co PLC on Wednesday said it has completed the acquisition of assets in Oklahoma and Texas.
The Alabama, US-based energy producer and distributor said the USD240 million purchase will increase group production by around nine thousand barrels of oil equivalent per day.
The assets were bought from ConocoPhillips, and funded with cash on hand as well as its revolving credit facility. It now has a post-transaction liquidity of around USD200 million.
It plans to increase liquidity with a higher borrowing base on the facility, as it adds the assets as additional collateral.
Shares in Diversified Energy were down 1.6% to 123.46 pence each in London on Wednesday morning.
"The successful close of this attractively priced acquisition increases asset density and enhances the opportunity for synergies within the Central Region, while providing robust cash flows that further support our dividend distributions and future accretive reinvestment," said Chief Executive Officer Rusty Hutson.
By Elizabeth Winter; [email protected]
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