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(Alliance News) - Diversified Energy Co PLC on Monday announced a deal to buy into upstream assets in Louisiana and Texas, forking out USD154 million.
The FTSE 250-listed firm noted the total purchase price of the assets will be USD308 million, with Oaktree Capital Management LLP stumping up half of that figure. Diversified Energy will have just over a 51% stake, with Oaktree holding the remainder.
The Cotton Valley and Haynesville upstream assets, to be purchased from Tanos Energy Holdings III LLC, include 390 net operated wells which are producing 14,000 barrels oil equivalent per day.
Diversified Energy expects the deal to close in August.
The company's stake in the projects will rise to 60% once Oaktree achieves a 10% return on its internal rate of return investment.
"Oaktree's participation not only demonstrates the attractive nature of these acquisitions, but also affords Diversified additional liquidity and line of sight to identify and pursue opportunities while continuing to maintain a strong balance sheet," Chief Executive Officer Rusty Hutson said.
In addition, Diversified Energy said it has completed a deal to buy some upstream assets from Blackbeard Operating LLC for an initial USD180 million.
Shares in Diversified Energy were flat at 109.60 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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