Diversified Energy Acquires East Texas Natural Gas Assets for $245M
Diversified Energy announced the execution of a purchase and sale agreement for the acquisition of high-working interest, natural gas properties and related facilities located in east Texas from Sheridan Production. The acquisition is expected to be funded through existing liquidity from Diversified's senior secured bank facility. The company expects to close the acquisition in the second quarter of 2026, subject to customary closing conditions. The purchase price is $245M in cash before anticipated, customary purchase price adjustments. Commenting on the Acquisition, CEO Rusty Hutson, Jr. said: "The target assets are a perfect fit with our existing East Texas operations and offer meaningful opportunities for material synergies upon completion of the Acquisition. The accretive transaction adds scale to our East Texas regional footprint and remains consistent with our strategy to focus on acquiring high-quality, low-decline producing assets at attractive valuations. These assets will benefit from our Smarter Asset Management approach to improve production, enhance margins, and grow free cash flow. Additionally, we anticipate that incremental cash flow can be generated from our Portfolio Optimization Programs. Our Company has a proven, demonstrated track record of delivering value to shareholders from our strategy of acquiring, operating, and optimizing established cash-generating energy assets."
