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Diversified to Acquire Complementary, High-Qu...
Diversified Energy Company has entered into an agreement to acquire high-working interest natural gas properties in east Texas for $245 million in cash, expected to close in the second quarter of 2026. This acquisition is projected to add approximately 62 MMcfepd of net production with low annual declines of around 6%, contributing an estimated $52 million in NTM EBITDA and reserves of 397 Bcfe with a PV-10 of $310 million. The contiguous assets are expected to generate significant operating efficiencies and synergies with Diversified's existing East Texas footprint. Disclaimer*
About this update from Diversified Energy Company
[{"type":"text","content":"\n\n \n \n\n Diversified to Acquire Complementary, High-Quality, Low-Decline Producing Assets\n\nAccretive Acquisition of Contiguous Operating PositionBIRMINGHAM, Ala., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Diversified Energy Company (NYSE: DEC, LSE: DEC) (\"Diversified\" or the \"Company\") is pleased to announce the execution of a purchase and sale agreement for the acquisition of high-working interest, natural gas properties and related facilities located in east Texas (the \"Assets\") from Sheridan Production (the \"Seller\") (the \"Acquisition\"). The Acquisition is expected to be funded through existing liquidity from Diversified’s senior secured bank facility. The Company expects to close the Acquisition in the second quarter of 2026, subject to customary closing conditions. Acquisition Highlights Purchase price of $245 million in cash before anticipated, customary purchase price adjustmentsNet purchase price represents estimated ~PV-15 valuation2026 estimated net production of ~62 MMcfepd (~10 Mboepd)(a) with low annual declines of ~6%(b) Complements Diversified’s industry-leading corporate declines and low capital intensityGas-weighted production with ~72% gas volumes Estimated NTM EBITDA of ~$52 million(c) PDP Reserves of ~397 Bcfe with estimated PV-10 of $310 million(b) Assets are contiguous with Diversified's existing East Texas assets Proximity to existing assets creates immediate line of sight to future operating efficienciesIncludes ~75,000 acres of commercially attractive leasehold in East Texas Commenting on the Acquisition, CEO Rusty Hutson, Jr. said: \"The target assets are a perfect fit with our existing East Texas operations and offer meaningful opportunities for material synergies upon completion of the Acquisition. The accretive transaction adds scale to our East Texas regional footprint and remains consistent with our strategy to focus on acquiring high-quality, low-decline producing assets at attractive valuations. These assets will benefit from our Smarter Asset Management approach to improve production, enhance margins, and grow free cash flow. Additionally, we anticipate that incremental cash flow can be generated from our Portfolio Optimization Programs. Our Company has a proven, demonstrated track record of delivering value to shareholders from our strategy of acquiring, operating, and optimi...