Diversified Energy Company’s acquisition of c.20Mboe/d net production from Oaktree marks another important step in the group’s growth trajectory says Peel Hunt.
The price was notably below the estimate of US$386m, while the 2024 EBITDA of the assets is US$ 126 million, resulting in an attractive purchase price multiple of 3.0 times.
Diversified has also completed a redetermination of its revolving credit facility, resulting in a US$80m (26%) increase in the borrowing base to US$385m.
“We reiterate our target price of 3,000p (>150% potential upside) and maintain our Buy rating,” said the broker.