Diversified Energy Announces Strategic Acquisition of High-Interest Texas Natural Gas Assets
Vancouver, Canada
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July 12, 2024 12:05 PM Eastern Daylight Time
Diversified Energy Company CEO Rusty Hutson Jr. joined Steve Darling from Proactive to announce the conditional purchase and sale agreement for acquiring high-working interest, operated natural gas properties and related facilities located within eastern Texas from Crescent Pass Energy. The company expects to close the acquisition in the third quarter of 2024. These assets are contiguous with Diversified's existing East Texas assets and include approximately 170,000 acres of commercially attractive leasehold in both East Texas and the Freestone Trend.
Hutson informed Proactive about the current net production of 38 MMcfepd (6 Mboepd), with low annual declines of around 9%. This acquisition boasts industry-leading corporate declines and capital intensity. Hutson highlighted the importance of low decline rates in managing annual production levels and securing long-term cash flows. He also emphasised the company's strategy of growth through acquisitions, focusing on assets that add value to shareholders. A notable aspect of this transaction was the use of shares from Diversified Energy's US listing as part of the purchase price, marking a significant step in leveraging the company's equity in future acquisitions.
Contact Details
Proactive North America
+1 604-688-8158
