Diversified enters deal to add central region asset interests

Diversified Energy Co. PLC has entered into a conditional agreement with Oaktree Capital Management LP to acquire working interests in certain assets operated in the US central region for $462 million.

The assets include wells currently operated by Diversified throughout the region and are expected to add production of 122 MMcfed (80% natural gas), representing an increase of 15% when compared with the company’s previously announced 2023 average daily production.

Diversified has struck various asset purchases with Oaktree in recent years, including deals to acquire Oaktree's proportionate interests in Indigo, Tanos III, East Texas, and Tapstone for an estimated gross purchase price of $410 million (OGJ Online, Aug. 18, 2021; May 4, 2021).

Conclusion of the newest deal is conditional, amongst other things, on the approval of Diversified’s shareholders, by ordinary resolution, at a general meeting and is expected to close in this year’s second quarter.

For fiscal year 2023, Diversified had net daily average production of 821 MMcfed (137,000 boe/d).