Diversified Energy Expands Central Region with $50 Million East Texas Acquisition

Under a strategic participation agreement with Oaktree Capital, Diversified Energy will obtain a 52.5% working interest in the acquisition of certain East Texas upstream assets and related facilities from a private seller.

Diversified Energy Expands Central Region with $50 Million East Texas Acquisition

The East Texas acquisition marks the fifth deal in Diversified’s Central Region within the past year, which CEO Rusty Hutson Jr. said demonstrates Diversified’s status as a “capable consolidator of low-decline producing assets.” (Source: Hart Energy)

Diversified Energy Co. Plc agreed on April 26 to a $50 million acquisition of East Texas assets marking the fifth deal in Diversified’s central regional focus area, which the company only established roughly a year ago.

“Having emerged as a significant operator in the Central Region with a proven track record of execution in Appalachia and a strong balance sheet, we are well positioned to capitalize on additional opportunities,” Diversified CEO Rusty Hutson Jr. commented in a company release.

Headquartered in Birmingham, Ala., and listed on the London Stock Exchange, Diversified’s business model focuses exclusively on buying high margin, low-decline producing assets, which, until an acquisition in Louisiana last May, had all been focused in the Appalachian Basin.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.