Last checked at 17 Jul 2023 07:00
17 July 2023
Diversified Energy Company PLC
("Diversified" or the "Company")
Strategic Monetization of Assets
Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company") is pleased to announce the sale of certain undeveloped acreage within Diversified's Central Region (the "Assets") for net consideration of ~$16 million (the "Transaction") to an undisclosed buyer.
The Assets include approximately ~22,000 net acres in Oklahoma, representing a small portion of the Company's undeveloped Central Region acreage. The Transaction demonstrates Diversified's ability to realize upside within its broader portfolio by monetizing undeveloped and non-core acreage, adds ~$16 million to the Company's liquidity, and is well-aligned with Diversified's strategic focus on operated PDP properties. Consistent with prior acquisitions, the Company ascribed no value to the leasehold in its purchase price allocation. Accordingly, 100% of the proceeds from this sale represent additional value to shareholders.
Commenting on the Transaction, CEO Rusty Hutson, Jr. said:
"Once again, our teams delivered in their commitment to enhance the value from recent Central Region acquisitions, significantly reducing our net purchase price by successfully monetizing another portion of undeveloped leasehold. This Transaction exemplifies our strategy of efficiently managing our producing assets while extracting upside from other portions of our asset portfolio. The sale proceeds enhance our liquidity as we evaluate other value-accretive opportunities to generate additional free cash flow. We remain focused on delivering operational and administrative synergies, stewarding our assets, and executing our Smarter Asset Management programmes."
For further information please contact:
Diversified Energy Company PLC | +1 973 856 2757 |
Doug Kris | dkris@dgoc.com |
www.div.energy |
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FTI Consulting | DEC@fticonsulting.com |
US & UK Financial Public Relations |
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About Diversified Energy Company PLC
Diversified Energy Company PLC is an independent energy company engaged in the production, marketing, transportation, and retirement of primarily natural gas related to its US onshore upstream and midstream assets.