LONDON, UK: Diversified Energy Company PLC (LSE: DEC), a diversified energy company, is pleased to announce the successful sale of certain non-core, non-operated assets within the company’s Central Region.
The transaction, valued at approximately $40 million, includes the sale of around 200 net, non-operated wells producing approximately 3,000 barrels of oil equivalent per day (boepd) and 17 million cubic feet equivalent per day (MMcfepd).
The gross consideration for the assets represents an estimated four times the next twelve months’ cash flow multiple. In addition to the wells, the transaction includes approximately 85,000 net acres located in Oklahoma and Texas.
This divestiture highlights Diversified’s ability to monetize non-core assets and focuses on its strategic objective of prioritizing operated properties in the proved, developed, and producing (PDP) stage. These properties benefit from regional scale, vertical integration, and the continuous application of Smarter Asset Management, which has contributed to the company’s industry-leading production declines.
Rusty Hutson, Jr., CEO of Diversified Energy Company, expressed his satisfaction with the transaction, stating, “This divestiture of non-operated properties underscores our commitment to optimizing the assets we operate while strategically realizing value from assets better suited for other operators and owners.”
By selling assets with higher operating costs than those the company operates, Diversified aims to reduce Central Region lease operating expenses and improve operating margins. The sale aligns with the company’s initiative to generate value from non-core and undeveloped acreage.
The proceeds from the transaction, amounting to approximately $40 million, will enhance Diversified’s liquidity. This increased liquidity will be utilized to support the company’s operated PDP-focused strategy, aimed at generating sustainable cash flows.
Diversified Energy Company continues to refine its portfolio and focus on assets that align with its operational strengths and strategic vision. The divestment of non-core assets represents another step in the company’s ongoing efforts to optimize its operations and maximize shareholder value.
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