Diversified Energy Company PLC Completion of Cotton Valley Asset Acquisition (1110Z)
May 19 2021 - 1:00AM
UK Regulatory
TIDMDEC
RNS Number : 1110Z
Diversified Energy Company PLC
19 May 2021
19 May 2021
Diversified Energy Company PLC
("Diversified" or the "Company")
Completion of Cotton Valley Asset Acquisition
Diversified Energy Company PLC (LSE: DEC) confirms that further
to the announcement made by the Company on 30 April 2021, it has
completed the purchase of certain Cotton Valley upstream assets and
related infrastructure from Indigo Minerals LLC ("Indigo") (the
"Acquisition").
Acquisition Highlights
-- Establishes an entry into Diversified's newly identified Central Regional Focus Area ("RFA")
-- Gross consideration paid of $135 million (before customary purchase price adjustments)
-- Annualised 4Q20 Adjusted EBITDA of approximately $40MM
-- PDP reserves of 50 MMBoe (305 Bcfe) with pretax PV10 of
$175MM based on 16 April 2021 NYMEX strip
-- Current production of 16 MBoepd (95 MMcfepd) includes 780 net operated wells
-- Retention of key field personnel to streamline integration
and Smarter Asset Management initiatives
-- Initial hedge positions cover approximately 80% and 50% of
remaining CY2021 and full-year CY2022 production, respectively,
from the Acquisition assets
The Acquisition constitutes a Class 2 transaction for the
purposes of the Listing Rules and this announcement is made in
accordance with the Company's disclosure obligations pursuant to
Chapter 10 of the Listing Rules.
Rusty Hutson, Jr., CEO of the Company commented:
"We are excited to solidify our entry into the
strategically-aligned Central focus area, a prolific natural gas
producing region that affords us a tremendous opportunity to build
significant scale and cash flow. I'm pleased to welcome the former
Indigo employees to the Diversified family who are eager to
integrate these assets as they embrace our Smarter Asset Management
philosophy designed to maximize the value of every well. This
acquisition provides us a foundation to acquire additional
accretive, long-life producing assets that will contribute to
strong shareholder returns, add stability to our hedge-protected
dividend and drive additional debt reductions over time."
For further information, please contact:
Diversified Energy Company PLC +1 205 408 0909
Teresa Odom, Vice President, Investor
Relations
www.dgoc.com
ir@dgoc.com
Buchanan +44 20 7466 5000
Financial Public Relations
Ben Romney
Chris Judd
Kelsey Traynor
James Husband
dgo@buchanan.uk.com
About Diversified Energy Company PLC
Diversified Energy Company PLC is an independent energy company
engaged in the production, marketing and transportation of
primarily natural gas related to its synergistic US onshore
upstream and midstream assets.
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END
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