Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has completed the acquisition of natural gas properties and related facilities in eastern Texas from Crescent Pass Energy.
The purchase price of $106 million was adjusted to a net price of $101 million after customary adjustments.
Acquired assets include Proved Developed Producing (PDP) reserves of approximately 170 billions of cubic feet equivalent and current net production of 38 million cubic feet per day.
The acquisition's estimated Next Twelve Months (NTM) Adjusted EBITDA is projected to be $26 million, leading to a purchase price multiple of 3.8x.
Diversified is funding the acquisition through the issuance of 2.25 million new ordinary shares and $71 million in cash.
These new shares represent approximately 4.77% of the company’s existing issued share capital.
Diversified’s chief executive Rusty Hutson stated: "We are excited to announce the completion of another attractively-priced acquisition of Central Region assets which stands to benefit Diversified as a result of our continued growth in scale and density throughout the asset footprint.
“We are excited to onboard our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business."