Independent energy group Diversified Energy has entered into a sale and purchase agreement to acquire certain upstream assets and related facilities located within its central region in Oklahoma and Texas from ConocoPhillips.
Diversified Energy said on Thursday that it will pay $240.0m for the assets, before customary price adjustments, with an estimated net price of roughly $210.0m and an expected closing date of “late September”.
The FTSE 250-listed group said the acquisition would be fully funded from existing liquidity.
Chief executive Rusty Hutson Jr said: “I am pleased to announce another strategically-aligned acquisition at a compelling valuation in the company’s central region that reinforces our commitment to create long-term value for shareholders.
“Financed entirely with existing liquidity, this non-dilutive acquisition represents a compelling opportunity to further scale our central region portfolio while maintaining a strong balance sheet. Building on our success in Appalachia, we are excited to increase our holdings within the central region that position us to drive greater synergies and unlock additional shareholder value through scale.”
As of 0840 BST, Diversified Energy shares were up 2.29% at 120.60p.
Reporting by Iain Gilbert at Sharecast.com
