Diversified Energy closes acquisition of East Texas assets

Diversified Energy (DEC) Company announces the closing of its previously announced acquisition of operated natural gas properties located within eastern Texas from a regional operator. Acquisition Highlights: Total gross purchase price of $69 million before customary purchase price adjustments; $68 million for high working-interest PDP asset package; $1 million for residual interest of retained undeveloped acreage; Acquisition net purchase price of $49 million after customary purchase price adjustments; PDP reserves of ~70 Bcfe and a PDP PV10 of ~$89 million; Current net production of 21 MMcfepd; Estimated NTM Adjusted EBITDA of ~$19 million million; Purchase price multiple of ~3.5x. As previously announced, the net consideration for the Acquisition consists of a combination of the issuance of 2,342,445 new US-dollar denominated ordinary shares to the Seller, and cash consideration of $22 million, drawing from a senior secured bank facility supported by the acquired assets and existing liquidity. The New Shares represent approximately 4.57% of the Company’s existing issued share capital. The shares conveyed to the seller are subject to standard regulatory restrictions for a period of six months.