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(Alliance News) - Diversified Energy Co PLC on Wednesday said it has closed the sale of an undeveloped Haynesville acreage in Texas, netting USD34.6 million from the divestment.
Oaktree Capital Management has also divested its interest in the acreage, with the total sum of both sales coming to USD67.4 million.
The sale was first announced by Diversified in mid-November, and the energy company expects a second closing of the deal of up to USD4 million to be conducted in the near future, of which Diversified stands to net around USD2 million.
Despite ascribing no value to the undeveloped Haynesville leasehold, the sale has reduced Diversified's investment in the upstream assets acquired from Tanos Energy Holdings III LLC in August to USD83 million from USD118 million.
"Using the nearly USD35 million of proceeds to reduce the borrowings on our revolving credit facility enhances our financial flexibility as we evaluate other value-accretive opportunities. We enter 2022 with momentum as we integrate our Central Region assets, progress our comprehensive ESG initiatives and remain ever focused on opportunities to expand our portfolio of producing assets," said Chief Executive Officer Rusty Hutson.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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