Diversified Energy Co. Plc recently announced the completion of its multimillion-dollar acquisition of Oklahoma-based Tapstone Energy, marking Diversified’s fourth deal in what the company has dubbed its new central regional focus area.

“As we close our fourth acquisition within the central region this year, we continue the efficient integration process of our high-quality assets within the region,” CEO Rusty Hutson Jr. commented in a company release on Dec. 8.

Founded in late 2013 by industry veteran Tom Ward, Tapstone Energy focuses in the Anadarko Basin of the Midcontinent region. The independent oil and gas producer recently completed a successful restructuring process whereby a new capital sponsor, Kennedy Lewis Investment Management, had selected Tapstone to be their key E&P platform.

The acquisition of Tapstone, previously announced in early October, included upstream assets, field infrastructure, equipment and facilities in Oklahoma from Tapstone and an affiliate of Kennedy Lewis Investment Management for $419 million in cash.

Private equity group Oaktree Capital Management LP had agreed to pay $192 million for an initial 48.75% stake as part of the deal. In its release on Dec. 8, Diversified said its adjusted net share of the purchase price, at $181 million, represents a nearly 1.9x multiple on around $95 million of estimated adjusted EBITDA, not including potential synergies.

“At less than two times adjusted EBITDA,” Hutson continued, “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 ESG initiatives, dividend distributions, debt reductions and further accretive reinvestment.”

Headquartered in Birmingham, Ala., and listed on the London Stock Exchange, Diversified’s business model focuses exclusively on buying PDP natural gas assets, which, until its May acquisition of assets located primarily in Louisiana, had all been focused in the Appalachian Basin. In total, Diversified has spent close to $470 million as part of its central region buildout, which in addition to the Tapstone deal, included acquisitions of Tanos Energy Holdings III LLCBlackbeard Operating LLC and Indigo Minerals LLC.

Additionally, the Tapstone acquisition also represents the third co-investment since May with its financial partner Oaktree Capital Management, which made a nonoperated working interest investment in the Tapstone acquisition.

Net of Oaktree’s co-investment, Diversified said in a previous release it acquired about 660 net operated wells located in Oklahoma within the broader Midcontinent producing area through the Tapstone deal. Production in August from the Tapstone assets was roughly 12,000 boe/d (over 80% natural gas and NGL), according to the release.

As part of the acquisition, Diversified also retained Tapstone personnel, which the company said is consistent with its growth strategy, to assist with Diversified’s smarter asset management program, which focuses on optimizing asset performance and reducing costs that will ultimately add value through realization of operational synergies.

Diversified funded its portion of the Tapstone acquisition with a draw on the company’s enlarged $825 million credit facility, following its semi-annual redetermination completed on Dec. 7.

Evercore was exclusive financial adviser to Diversified in connection with the acquisition. Jeffries acted as sole financial adviser to the sellers.