Proactive’s Post

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has completed the acquisition of natural gas properties and related facilities in eastern Texas from Crescent Pass Energy. The purchase price of $106 million was adjusted to a net price of $101 million after customary adjustments. Acquired assets include Proved Developed Producing (PDP) reserves of approximately 170 billions of cubic feet equivalent and current net production of 38 million cubic feet per day.  The acquisition's estimated Next Twelve Months (NTM) Adjusted EBITDA is projected to be $26 million, leading to a purchase price multiple of 3.8x. Diversified is funding the acquisition through the issuance of 2.25 million new ordinary shares and $71 million in cash. These new shares represent approximately 4.77% of the company’s existing issued share capital. Diversified’s chief executive Rusty Hutson stated: "We are excited to announce the completion of... More at #Proactive #ProactiveInvestors http://ow.ly/2luF105FAk1

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced its latest acquisition, picking up what it described as high-quality natural gas properties in eastern Texas. DEC is paying $106 million to acquire the assets from Crescent Pass Energy, including the issuing 2.4 million shares to the seller. The asset package comprises 827 operated wells and over 500 miles of pipelines, with current production of 38 million cubic feet per day, with low annual decline rates, and earning (NTM EBITDA) of $26 million per year. It adds 170 billion cubic feet of PDP (proved developed and producing) reserves, valued at $155 million. Rusty Hutson, DEC chief executive, described the assets as “a perfect fit” for the company’s existing East Texas portfolio. “The accretive transaction adds scale to our Central region footprint and remains consistent with our strategy to focus on high-quality, low-decline producing assets at... More at #Proactive #ProactiveInvestors http://ow.ly/wJZq105A5YJ

Diversified Energy has announced a $45 million acquisition of natural gas properties and midstream facilities in Virginia, West Virginia, and Alabama. The assets were purchased from Summit Natural Resources. https://ow.ly/5Smj50UAOhX

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) (DEC) has announced a significant acquisition that bolsters its position in the Central Region of the US by acquiring approximately 510 billion cubic feet equivalent (Bcfe) of proven developed producing (PDP) reserves for $410 million. This move is part of DEC's strategy to consolidate its working interest in wells it already operates. The transaction is seen as highly advantageous. It carries a favourable cost per unit, especially notable as it incurs no additional general and administrative expense for the company. It is also expected to counteract natural production declines by adding around 122 million cubic feet equivalent per day (MMcfepd) in extra output, with about 80% of this being natural gas. This represents around a 15% increase in overall company production. More at #Proactive #ProactiveInvestors #DiversifiedEnergyCompany http://ow.ly/hF1Z105mu0R

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has further increased its footprint in East Texas, acquiring interests in a package of assets. The acquisition, priced at $68 million, will add 21 million cubic feet per day (4,000 barrels oil equivalent) of production and 70 billion cubic feet (12mln barrels oil equivalent) of Proved Developed Producing (PDP) reserves to Diversified's portfolio. Separately, and concurrently, a third-party development company is acquiring undeveloped acreage for approximately $19 million, with Diversified taking a 5% minority interest for an investment of $1 million. DEC will pay the seller, described as “a regional operator”, $18 million in cash with the remainder of the deal consideration paid in new DEC shares. More at #Proactive #ProactiveInvestors http://ow.ly/3m9f105G4In

Diversified Energy Company PLC's (LSE:DEC, NYSE:DEC) latest asset acquisition in Texas looks like a high-quality and well-priced addition, that’s according to analysts at stockbroker Peel Hunt. The broker, following today’s deal news, repeated a ‘buy’ recommendation for the London and NYSE listed American oil and gas company. With a price target pitched at 3,000p, Peel Hunt sees very substantial upside for the share – which today trades at around 1,116p. “[The acquisition] is a very good fit with Diversified's existing asset base. We will update our model in due course,” Peel Hunt analyst Matt Cooper said in a note. In a statement this morning, DEC described the newly picked up assets as high-quality natural gas properties in eastern Texas. DEC is paying $106 million to acquire the assets from Crescent Pass Energy, including the issuing of 2.4 million shares to the seller. The asset package comprises 827 operated... More at #Proactive #ProactiveInvestors http://ow.ly/QnPr105A7xI

Crescent Energy, a differentiated US energy company, agreed to acquire Eagle Ford assets from Ridgemar Energy, a Houston-based upstream company, for $905m. You can submit deals you were involved with here: https://lnkd.in/d_Firwmh “This transaction continues to highlight our ability to utilize our investing and operating expertise to identify and acquire high-quality assets, efficiently integrate them into our business and drive additional value through improved operations. With accelerated synergies captured from the integration of SilverBow and our recent bolt-on acquisition, our full team is ready and eager to add the Ridgemar assets to our core operating footprint in the Eagle Ford. These assets contribute meaningful scale, enhance Crescent’s cash margins, increase our oil-weighting and extend our low-risk inventory life, all at an attractive and highly accretive valuation. I remain confident in our ability to capitalize on our strong momentum and continue our profitable growth trajectory towards our investment grade ambitions,” David Rockecharlie, Crescent CEO. Crescent Energy (led by David Rockecharlie) is advised by Jefferies and Kirkland & Ellis. Ridgemar Energy (led by Preston Powell) is advised by RBC Capital Markets and Vinson & Elkins (led by Bryan Loocke). #MergersAcquisitionsDivestitures #Energy #OilandGas

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Quantum Capital Group, a private equity company, agreed to acquire oil and gas operations from Oaktree Capital Management, L.P.-backed Caerus Oil and Gas LLC, a company that invest in conventional oil and gas properties, for $1.8bn. “As an active private energy investor, we recognize the important role of expanding access to clean and reliable energy in key markets across the United States. This transaction represents a unique opportunity for Quantum to invest in substantial natural gas production alongside large, contiguous acreage positions containing sizable hydrocarbon resources with significant value creation potential. We believe that KODA and QB Energy are well positioned to steward the next phase of development and operation of the Assets to serve responsibly natural gas demand centers in the western US while generating attractive returns for our investors," Tom Field, Quantum Partner. Quantum is advised by Vinson & Elkins and Joele Frank (led by Katherine Thompson). Caerus is advised by Bank of America, Evercore, Jefferies, Davis Graham & Stubbs LLP and Latham & Watkins. #MergersAcquisitionsDivestitures #OilAndGas #Energy

Phillips 66, a diversified and integrated downstream energy provider, agreed to acquire Pinnacle Midstream II LLC, an independent midstream energy company, from Energy Spectrum Capital, a private equity firm, for $550m. "We are growing our Midstream business in the Permian to further strengthen and expand our service offerings to customers while driving operational and commercial synergies. Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio. Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain, be disciplined with our capital allocation and create sustainable value for our shareholders," Mark Lashier, Phillips 66 Chairman and CEO. Pinnacle Midstream (led by J Greg Sargent) is advised by Jefferies. #MergersAcquisitionsDiversitures #Midstream #OilAndGas