Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) confirmed the completion is its latest acquisition in its ‘Central Region’ (Oklahoma, Texas, Louisiana) adding 9,000 barrels oil equivalent production in a US$240mln deal (US$210mln net).
The deal covers 31mln barrels of proved developed producing (PDP) reserves, with the acquisition cost marked at 2.5x PDP-only assets. The acquired assets are expected to contribute US$82mln of annual earnings (adjusted EBITDA) based on cash margins of around 70%.
It was funded through cash-on-hand and existing availability in the company’s revolving credit facility.
"Having closed another non-dilutive acquisition of high-quality assets that add scale to Central Region, we are excited to begin the process of efficient integration and deployment of Smarter Asset Management along with our ESG initiatives across this additional asset base,” chief executive Rusty Hutson said in a statement.
“The successful close of this attractively priced acquisition increases asset density and enhances the opportunity for synergies within the Central Region, while providing robust cash flows that further support our dividend distributions and future accretive reinvestment."