Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) is adding another complimentary package of assets, today announcing a US$240mln deal with ConocoPhilips for producing wells in Oklahoma and Texas.
The move will bring to DEC some 9,000 barrels oil equivalent production per day.
“Financed entirely with existing liquidity, this non-dilutive acquisition represents a compelling opportunity to further scale our Central Region portfolio while maintaining a strong balance sheet,” said DEC chief executive Rusty Hutson.
“Building on our success in Appalachia, we are excited to increase our holdings within the Central Region that position us to drive greater synergies and unlock additional shareholder value through scale."
In total, DEC is acquiring around 1,500 producing wells from ConnocPhilips.
It is the company’s sixth major acquisition into its ‘Central Region’ since May 2021, and is its second in this ‘mid-continent’ area since mid-2021.
DEC highlighted the close proximity of the latest asset package to the previously acquired Tapstone assets, and said it creates an opportunity to develop operational synergies of scale.
Additionally, it noted the new assets will generate high cash operating margins.
The transaction, which is subject to customary purchase price adjustments, is expected to close in late September with a net price of US$210mln.