(Alliance News) - Diversified Gas & Oil PLC on Friday said it has completed the purchase of two separate natural gas gathering systems in Pennsylvania and West Virginia, US.
The assets, which were purchased from Dominion Gathering & Processing Inc and Equitrans LP for USD7.7 million in cash, comprise 1,700 miles of low-pressure wet and dry gas gathering pipelines together with compressors, measurement stations and related facilities and equipment.
Combined with Diversified Gas & Oil's existing southern midstream system, the company now owns and operates 12,000 miles of natural gas gathering and transporting pipelines across the Appalachian basin.
"We are pleased to close on these transactions and are eager to move forward with an expeditious integration of these assets into our midstream portfolio. The ability to control the flow of our gas while simultaneously increasing our market optionality and net cash margins represents another value enhancing transaction for the company," said Chief Executive Rusty Hutson.
Diversified Gas & Oil shares were trading 3.6% higher in London on Friday at 111.34 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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