Diversified Energy sells off USD40 million of non-core assets
Diversified Energy Co PLC on Wednesday said it boosted its liquidity with the divestiture of around USD40 million worth of non-operated assets.
The Alabama, US-based oil and gas production company said the assets include around 200 net, non-operated wells which produce around 3 million barrels of oil equivalent per day.
The USD40 million gross consideration is around four times the cash flow multiple over the next twelve months and includes around 85,000 associated net acres in Oklahoma and Texas.
In addition to adding to its liquidity, the firm said the transaction shows its ability to monetize non-core assets. It also aligns with its strategic focus on ‘proved-developed-producing’ properties, which benefit from regional scale, vertical integration, and smarter asset management.
“Selling these assets with operating costs higher than those we operate positions us to further reduce our Central Region lease operating expenses and improve operating margins,” said Chief Executive Officer Rusty Hutson.
Shares in Diversified Energy were up 1.9% at 86.35 pence each in London on Wednesday morning.