Curated News
By: NewsRamp Editorial Staff
July 12, 2024
Diversified Energy CEO Announces Acquisition of Texas Natural Gas Assets
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- Diversified Energy Company gains advantage through strategic acquisition of high-interest Texas natural gas assets, leveraging low corporate declines and capital intensity.
- The acquisition involves purchasing high-working interest, operated natural gas properties and related facilities in eastern Texas, adding 170,000 acres of leasehold in East Texas and the Freestone Trend.
- The acquisition secures long-term cash flows, emphasizes low decline rates for managing production levels, and focuses on adding value to shareholders through growth and future acquisitions.
- The CEO of Diversified Energy highlights the importance of low decline rates and the use of company shares as part of the purchase price in a significant step towards leveraging equity in future acquisitions.
Impact - Why it Matters
This news matters as it highlights Diversified Energy's strategic acquisition of high-working interest natural gas assets in Texas, showcasing their growth strategy and the use of shares for the purchase price. It also emphasizes the importance of low decline rates in managing production levels and securing long-term cash flows.
Summary
Diversified Energy Company CEO Rusty Hutson Jr. joined Steve Darling from Proactive to announce the conditional purchase and sale agreement for acquiring high-working interest, operated natural gas properties and related facilities located within eastern Texas from Crescent Pass Energy. The company expects to close the acquisition in the third quarter of 2024. These assets are contiguous with Diversified's existing East Texas assets and include approximately 170,000 acres of commercially attractive leasehold in both East Texas and the Freestone Trend.
Hutson informed Proactive about the current net production of 38 MMcfepd (6 Mboepd), with low annual declines of around 9%. This acquisition boasts industry-leading corporate declines and capital intensity. Hutson highlighted the importance of low decline rates in managing annual production levels and securing long-term cash flows. He also emphasised the company's strategy of growth through acquisitions, focusing on assets that add value to shareholders. A notable aspect of this transaction was the use of shares from Diversified Energy's US listing as part of the purchase price, marking a significant step in leveraging the company's equity in future acquisitions.
Contact Details
Proactive North America
+1 604-688-8158
NA-editorial@proactiveinvestors.com
View source version on newsdirect.com: https://newsdirect.com/news/diversified-energy-announces-strategic-acquisition-of-high-interest-texas-natural-gas-assets-262512018
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Diversified Energy CEO Announces Acquisition of Texas Natural Gas Assets
