Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has struck a deal to acquire Maverick Natural Resources for $1.28 billion, adding assets in the Western Anadarko and Permian basin, to increase its revenue base by some 95%.
The London-listed firm said the deal adds immediate scale, increases liquids production, and creates a combined company with long-term free cash flow generation, superior unit cash margins, and a compelling sustainability profile.
It sees the production profile increase to around 200,000 barrels of oil equivalent per day.
"This acquisition expands our unique and highly focused energy production company with a complementary portfolio of attractive, high-quality assets,” chief executive Rusty Hutson said in a statement.
“We have a proven track record of unlocking value from acquisitions while maintaining our commitment to sustainability leadership, and this acquisition provides us with great assets and employees that complement this strategy.”
“The acquired producing assets have demonstrated leading well performance and are a natural fit with our operating advantage and existing acreage.”
Hutson added: “Notably, the combined footprint in Oklahoma and the Western Anadarko Basin creates one of the largest in terms of production and acreage, which includes the emerging Cherokee formation.”
Meanwhile, Maverick chief executive Rick Gideon said: Maverick has built a strong foundation of execution and efficiency across our portfolio, and we look forward to combining our complementary portfolio of assets with Diversified.”
To acquire Maverick, DEC is to assume some $700 million of the company’s debt plus a mix of cash and shares to satisfy the balance ($207 million of cash, $345 million of shares).
The combined company will be led by Rusty Hutson.
It is expected that the transaction will close in the first half of 2025.