Diversified Energy Company PLC (LSE:DEC, NYSE:DEC, FRA:DG20) has announced its latest acquisition, with a deal to buy 'high' working interests in natural gas assets and related facilities in East Texas.
The $245 million cash deal with Sheridan Production adds low-decline production that DEC says fits tightly with its existing regional footprint.
The London and New York listed company said it expects to fund the purchase using existing liquidity under its senior secured bank facility, and is targeting completion in the second quarter of 2026, subject to customary conditions.
Diversified estimates the assets will contribute around 62 MMcfepd (about 10 Mboepd) of 2026 net production, with annual declines of roughly 6% and a production mix that is about 72% natural gas. It is forecast to see roughly $52 million of earnings (EBITDA) over the next-twelve-months, before any synergies.
The acquired package includes about 397 Bcfe of proved developed producing reserves with a stated PV-10 of $310 million, as well as roughly 75,000 acres of leasehold.
Chief executive Rusty Hutson Jr. described the assets as “a perfect fit” with Diversified’s East Texas operations and should offer “meaningful opportunities” for synergies once the deal closes.
"The accretive transaction adds scale to our East Texas regional footprint and remains consistent with our strategy to focus on acquiring high-quality, low-decline producing assets at attractive valuations," Hutson said.
"These assets will benefit from our Smarter Asset Management approach to improve production, enhance margins, and grow free cash flow."
He added: "Our company has a proven, demonstrated track record of delivering value to shareholders from our strategy of acquiring, operating, and optimising established cash-generating energy assets."
In afternoon trading, the shares were up 4% at 1,016p.
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