LONDON, UK: Diversified Energy Company PLC (DEC) has announced the completion of an innovative deal that has enabled it to extract more value from its existing assets and improve its financial position.
The deal involved selling 80% of its producing assets in Appalachia to a special purpose vehicle (SPV) for $200 million, while retaining a 20% stake and the operatorship.
The proceeds were used to pay off some of the company’s debt and for other corporate purposes. The deal valued the assets at 5.7 times their projected 2024 earnings.
The assets were previously pledged as collateral for the company’s sustainability-linked loan, which has been adjusted accordingly.
Rusty Hutson, Jr., CEO of the Company, commented: “This latest transaction further demonstrates the attractiveness of Diversified’s asset base that provides reliable production and consistency of cash flows. At an attractive multiple, this Transaction has provided a path for the Company to unlock additional value from our assets, reduce our outstanding debt, and enhance our liquidity.”
Diversified Energy sells undeveloped acreage in Oklahoma for $16 million