Diversified Gas & Oil completes USD400 M acquisition
03 May 2019
Diversified Gas & Oil PLC., a U.S. based owner and operator of natural gas, natural gas liquids, oil wells and midstream assets in the Appalachian Basin, has recently announced the completed acquisition of certain gas producing assets in Pennsylvania and West Virginia from HG Energy II Appalachia, LLC for total consideration of USD400 M before customary adjustments (the "Acquisition").
Source: Diversified Gas & Oil
The Acquisition of the mature, unconventional assets continues Diversified's strategy of acquiring stable, long-life, low-decline producing assets in a focused region and complements the Company's existing conventional and unconventional asset base across the Appalachian Basin. The Acquisition of the 107 gross producing wells and related surface rights increases Diversified's pro-forma net daily production by approximately 30% to over 90,000 barrels of oil equivalent per day. The Acquisition immediately is accretive on a variety of per-share metrics including earnings and free cash flow through significant top-line revenue growth coupled with a further reduction of unit-level operating expenses.
These newly acquired wells increase Diversified's operating scale and enable the Company to further optimize operations and solidify its status as the consolidator of choice for mature producing and midstream assets in Appalachia.