Diversified Energy has completed the acquisition of natural gas properties and related facilities in eastern Texas from Crescent Pass Energy, marking another strategic move in the company's expansion. The deal, initially valued at £84m, closed at £80m after customary adjustments.
The acquired assets boast proven developed producing reserves of approximately 170 billion cubic feet equivalent, with current net production standing at 38 million cubic feet equivalent per day, translating to roughly 6,000 barrels of oil equivalent per day.
Diversified Energy funded the acquisition through a combination of financial strategies. The company issued 2,249,650 new US-dollar-denominated ordinary shares to Crescent Pass Energy, representing approximately 4.77% of Diversified Energy's existing issued share capital. These shares are subject to a customary commercial lock-up agreement. Additionally, a cash consideration of £56m was paid, sourced from a senior secured bank facility backed by the acquired assets and the company's existing liquidity.
Rusty Hutson Jr, CEO of Diversified Energy, expressed enthusiasm about the acquisition: "We are delighted to announce the completion of another attractively priced acquisition of Central Region assets. This acquisition benefits Diversified through our continued growth in scale and density across our asset footprint."
He continued: "We are eager to welcome our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management, alongside our sustainability initiatives across these assets. This move will also add robust cash flows, further supporting our business."
This acquisition further strengthens Diversified Energy's position in the US natural gas market, adding significant reserves and production capacity to its existing portfolio. The deal aligns with the company's strategy of pursuing attractive acquisitions to enhance its scale, efficiency, and long-term sustainability.
