Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced its first acquisition of 2025, picking up natural gas assets in West Virginia and Alabama for $45 million.
The assets, gas fields and related facilities, are being acquired from Summit Natural Resources – the package includes coal mine methane, with opportunities to extend production in the future.
DEC expects to close the transaction in the first quarter of 2025.
It will add around 12 million cubic feet equivalent per day (MMcfepd) of production and 65 billion cubic feet equivalent (Bcfe) in proved, developed producing reserves.
The reserves have an estimated value (PV-10) of $55.00 million and are projected to generate $12.00 million of earnings (adjusted EBITDA) for 2025.
"This asset package is strategically located within our existing southern Appalachia operations and is uniquely positioned to benefit from the operational expertise of our field teams,” chief executive Rusty Hutson said.
“Additionally, with this strategic acquisition, we anticipate capturing additional revenue from the sale of incremental environmental credits with our growth in the production of coal mine methane.”
“The acquisition is anchored with stable production and strategic midstream assets, which provide optionality for existing production volumes to move to premium-priced markets.”
Hutson added: “We continue to believe there is a sizeable backlog of organic Coal Mine Methane cash flow growth within our current Appalachian portfolio, and this acquisition highlights our ability to leverage existing capabilities, assets, and intellectual capital to grow this segment of our revenue stream inorganically.”