(Alliance News) - Diversified Energy Company PLC announced on Wednesday it has completed its acquisition of Oklahoma-based gas producer, Tapstone Energy Holdings LLC.
The Alabama-based gas and oil production company bought Tapstone for USD181 million. The deal, first announced in early October, consists of the acquisition of certain upstream assets, field infrastructure, equipment and facilities.
California-based asset manager Oaktree Capital Management LP was a co-investor in the acquisition. Diversified Energy said it funded its portion of the deal with a draw on its enlarged USD825 million credit facility.
The investment's current production stands at 12,000 barrels of oil equivalent per day from 660 operated wells.
Chief Executive Rusty Hutson Jr said: "Having closed our fourth acquisition within the central region this year, we begin the efficient integration process of these high-quality assets. Alongside former Tapstone personnel who today join the Diversified family, we look forward to implementing our proven smarter asset management programme and to leveraging our enlarged regional footprint to capture operational synergies. At less than two times adjusted Ebitda, this highly accretive and attractively priced acquisition further solidifies our position as a leading consolidator of producing assets in the central region and enhances our cash flow to support our environmental, social and corporate governance initiatives, dividend distributions, debt reductions and further accretive reinvestment."
Shares in Diversified Energy were up 2.2% at 104.00 pence on Wednesday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Diversified Energy (DEC)