Diversified Energy snaps up bolt-on assets in Appalachian Basin
By Benjamin Chiou
Date: Monday 06 Jan 2025
(Sharecast News) - UK and US-listed oil group Diversified Energy Company has announced the acquisition of several assets in America's Appalachian Basin, across Virginia, West Virginia and Alabama, which it says will complement existing operations and provide synergies to improve margins.
The company is spending $45m on the assets, which currently product around 12m cubic feet equivalent (natural gas) - equivalent to 2m barrels of oil equivalents - per day.
Three fifths of acquired production comes from 300 net producing wells located in Virginia and West Virginia, while the remaining assets comprise 265 net producing coal mine methane wells in Alabama.
"This asset package is strategically located within our existing southern Appalachia operations and is uniquely positioned to benefit from the operational expertise of our field teams," said chief executive Rusty Hutson Jr.
"Additionally, with this strategic acquisition, we anticipate capturing additional revenue from the sale of incremental environmental credits with our growth in the production of coal mine methane."
Diversified expects the deal to close during the first quarter of 2025.
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