Diversified Energy Announces New Acquisition to Expand Production
Diversified Energy Company PLC has recently announced the acquisition of natural gas properties within Virginia, West Virginia, and Alabama from Summit Natural Resources. This strategic move is expected to greatly benefit Diversified’s production economics, thanks to the company’s regional presence and scale.
The acquisition, valued at approximately $45 million, will be funded through cash on hand and current liquidity. With current net production of around 12 MMcfepd, PDP reserves of 65 Bcfe, and estimated 2025 adjusted EBITDA of $12 million, this acquisition is poised to bring in substantial value for Diversified.
CEO Rusty Hutson, Jr. expressed excitement about the acquisition, highlighting the strategic location of the assets within Diversified’s existing southern Appalachia operations. The company anticipates additional revenue streams from the sale of environmental credits and the production of coal mine methane. With strategic midstream assets and operational synergies, Diversified is well-positioned to enhance its margins and generate long-term value for shareholders.
The acquisition also includes wells eligible for generating Alternative Energy Credits through Coal Mine Methane production, further expanding Diversified’s revenue potential in this area. The company plans to leverage its consolidation experience and operational expertise to maximize the value of these new assets.
With 300 net producing wells in Virginia and West Virginia and plans to integrate these assets with Diversified’s existing operations, the company is set to unlock the full potential of this acquisition. By implementing their Smarter Asset Management practices, Diversified aims to drive improved margins and operational performance in the Appalachian region.
