Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) announced the completion of its previously announced acquisition of Canvas Energy, adding operated producing assets and acreage positions in Oklahoma.
The transaction, valued at approximately $550 million, also includes a $400 million asset-backed securitisation to fund the purchase.
The acquisition delivers current net production of about 147 MMcfepd and expands Diversified’s footprint to around 1.6 million net acres.
DEC also issued 3.72 million consideration shares to former Canvas holders. “A” tranche notes for the securitisation priced at a blended coupon of 5.97%, the announcement said.
The company stated it anticipates “meaningful annual run rate synergies” from the newly combined portfolio.