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Diversified Completes Crescent Pass Acquisition
Diversified Completes Crescent Pass Acquisition.
About this update from Diversified Energy Company
[{"type":"text","content":"\n\nAugust 16, 2024\n \n Diversified Energy Company PLC\n(\"Diversified\" or the \"Company\")\n\nDiversified Energy Completes Crescent Pass Acquisition\n\nDiversified Energy Company PLC (LSE: DEC, NYSE:DEC) (\"Diversified\" or the \"Company\") announces the closing of its acquisition of the of high-working interest, operated natural gas properties and related facilities located within eastern Texas (the \"Assets\") from Crescent Pass Energy (the \"Seller\") (the \"Acquisition\").\n\nAcquisition Highlights\n• Purchase price of $106 million before customary purchase price adjustments\n• Acquisition net purchase price of $101 million after customary purchase price adjustments\n▪ PDP reserves of ~170 Bcfe (~28 MMBoe) and a PDP PV10 of ~$155 million(a)\n▪ Current net production of 38 MMcfepd (~6 Mboepd)(b)\n• Estimated NTM Adjusted EBITDA of ~$26 million(c)\n• Purchase price multiple of ~3.8x(c)\n\nAs previously announced, the net consideration for the Acquisition consists of a combination of the issuance of 2,249,650 new US-dollar denominated ordinary shares to the Seller (the \"New Shares\") (subject to a customary commercial lock-up agreement), and cash consideration of $71 million, drawing from a senior secured bank facility supported by the acquired assets and existing liquidity. The New shares represents approximately 4.77% of the Company's existing issued share capital.\n\nCEO Rusty Hutson, Jr. commented:\n\"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. 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.\"\n\nAdmission of Shares and Total Issued Share Capital\nThe Company has applied for the New Shares to be admitted to the Equity Shares (Commercial Companies) Category of the Official List of the Financial Conduct Authority and to trading on the main market of t...