Diversified will fund the cash portion from a senior secured bank facility supported by the acquired assets and existing liquidity. (Source: Shutterstock/ Diversified Energy)
Diversified Energy has closed its cash-and-stock acquisition of about 170,000 acres of leasehold in eastern Texas from Crescent Pass Energy.
Diversified will pay $106 million for the natural gas assets through the issuance of 2.24 million new shares and $71 million cash. Diversified will fund the cash portion from a senior secured bank facility supported by the acquired assets and existing liquidity.
The leasehold is in the East Texas and the Freestone Trend, Diversified said when it announced the deal on July 10.
Diversified said the assets hold proved developed producing (PDP) reserves of ~170 Bcfe (~28 MMboe) with a PDP PV-10 value of ~$155 million.
The assets’ net production averages the equivalent of 38 MMcf/d, and the company estimates volumes will generate next 12 months adjusted EBITDA of $26 million.
"We are excited to announce the completion of another attractively-priced acquisition of Central Region assets which stands to benefit Diversified as a result of our continued growth in scale and density throughout the asset footprint,” said Diversified CEO Rusty Hutson Jr.
“We are excited to on board our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business," Hutson said.
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