Diversified Closes $377MM Oaktree Acquisition

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Diversified Energy has closed its acquisition of working interests in Oklahoma, East Texas and Louisiana from Oaktree Capital Management, according to a June 7 press release.

The deal was announced in March with a $410 million price tag. Diversified paid $377 million after customary purchase price adjustments, the company said.

Diversified will also pay $83 million in deferred cash payments to Oaktree and assume approximately $120 million of debt.

The acquired assets have proved developed producing reserves of 510 Bcfe and a current net production of 122 MMcf/d.

The acquisition grows Diversified’s scale, margins and free cash flow, Diversified CEO Rusty Hutson Jr. said in the deal’s closing announcement.