Diversified Acquires East Texas Gas Assets, Including 500 Miles of Pipelines, for $106 Million
By Mary Holcomb, Digital Editor
(P&GJ) — Diversified Energy Co. has announced the acquisition of high-working interest, operated natural gas properties and related facilities located in eastern Texas from Crescent Pass Energy. The purchase, valued at $106 million before anticipated adjustments, is slated to close in the third quarter of 2024 pending customary approvals.
The acquisition includes over 500 miles of pipelines and compression facilities, enhancing Diversified's operational footprint in East Texas. These assets, currently producing 38 MMcfepd (6 Mboepd) with a modest annual decline rate of approximately 9%, align strategically with Diversified's focus on acquiring low-decline, high-quality assets.
"This acquisition strengthens our position in East Texas, providing immediate operational synergies and potential upside from undeveloped acreage," said Rusty Hutson, Jr., CEO of Diversified. "It underscores our commitment to enhancing shareholder value through strategic acquisitions and efficient asset management."
The transaction will be financed through a combination of approximately 2.4 million new U.S. dollar-denominated ordinary shares issued directly to Crescent Pass Energy and a senior secured bank facility supported by the acquired assets. This approach underscores Diversified's financial flexibility and strategic growth objectives.
Diversified expects the acquisition to contribute approximately $26 million in estimated NTM EBITDA, representing a 3.8x purchase multiple. The company anticipates a capital loss of 360 million euros from the sale.
Related News
Related News

- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- TC Energy Approves $900 Million Northwoods Pipeline Expansion for U.S. Midwest
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- Enbridge Adds Turboexpanders at Pipeline Sites to Power Data Centers in Canada, Pennsylvania
- Great Basin Gas Expansion Draws Strong Shipper Demand in Northern Nevada
- Cheniere Seeks FERC Approval to Expand Sabine Pass LNG Facility
- Heath Consultants Exits Locate Business to Expand Methane Leak Detection Portfolio
Comments