Diversified Energy Company PLC (Diversified) is pleased to announce the execution of a conditional purchase and sale agreement for the acquisition of operated natural gas properties located within eastern Texas from a regional operator.
Notably, the assets contain a significant Proved Developed Producing (PDP) component, approximately $68 million, which will be purchased by Diversified.
Concurrently, an active third-party development company with operations in the area will purchase an additional amount of undeveloped acreage with a value of approximately $19 million, the majority of which will be purchased by the third-party development company, with Diversified maintaining only a minority 5% interest for $1 million in consideration.
The total purchase price to the seller, inclusive of both the PDP assets and undeveloped acreage is approximately $87 million before customary purchase price adjustments. The development company will pay cash consideration of approximately $18 million to directly to the Seller at the closing of the acquisition.
The consideration for the acquisition of the assets to be paid by Diversified will be funded through a combination of the issuance of new US-dollar denominated ordinary shares direct to the seller in the amount of approximately $35 million and new and existing liquidity supported by the increased availability as the result of increased collateral associated with the assets. The company expects to close the acquisition in the fourth quarter of 2024 and is subject to a break fee, should the acquisition not occur.
