17th Jul 2023 08:21
(Alliance News) - Diversified Energy Co PLC on Monday reported that it had sold assets in Oklahoma for a net USD16 million to an undisclosed buyer.
The Alabama, US-based oil and gas production company said the assets were a "certain undeveloped acreage" within Diversified's central region, including approximately 22,000 net acres in Oklahoma.
"The transaction demonstrates Diversified's ability to realise upside within its broader portfolio by monetizing undeveloped and non-core acreage," the company said.
The USD16 million in net proceeds would be added to the company's liquidity.
Diversified said the sale was "well-aligned" with its strategic focus on priority development plan properties, and therefore 100% of proceeds represent additional value to shareholders.
The company aid it had ascribed no value to the leasehold in its purchase price allocation, consistent with prior acquisitions.
This sale follows the company's selling off of around USD40 million worth of non-operated assets, including 85,000 associated net acres in Oklahoma and Texas on June 28. The company said this would allow it to reduce its Central Region lease operating expenses, and improve operating margins.
Chief Executive Officer Rusty Hanson said: "This transaction exemplifies our strategy of efficiently managing our producing assets while extracting upside from other portions of our asset portfolio.
"The sale proceeds enhance our liquidity as we evaluate other value-accretive opportunities to generate additional free cash flow. We remain focused on delivering operational and administrative synergies, stewarding our assets, and executing our smarter asset management programmes."
Shares in Diversified Energy were 0.2% higher at 88.11 pence each in London on Monday morning.
By Will Neill, Alliance News reporter
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