Diversified Energy Closes $42 Million Summit Natural Resources Acquisition

(P&GJ) — Diversified Energy Company Plc has completed its acquisition of operated natural gas properties and midstream pipeline infrastructure from Summit Natural Resources. The assets, located in Virginia, West Virginia, and Alabama, expand Diversified’s footprint in the Appalachian region.

The $42 million acquisition includes production of approximately 12 MMcfepd and proven developed producing (PDP) reserves of 65 Bcfe with an estimated PV-10 value of $55 million. Diversified expects the assets to generate about $12 million in adjusted EBITDA in 2025.

“These high-quality, bolt-on assets are well-positioned to benefit from our operational expertise and exposure to premium Transco Zone 5 pricing,” said CEO Rusty Hutson, Jr. “Additionally, they offer opportunities to grow revenue through the production of coal mine methane and environmental credits.”

The company also closed a $530 million asset-backed securitization (ABS) refinancing, consolidating and repaying prior ABS and term loan structures. The oversubscribed issuance, supported by 20 investors, was rated investment grade and features a 6.4% fixed coupon.

“This strategic refinance improves asset-level cash flow with higher hedge prices and a more refined amortization schedule,” said CFO Brad Gray. “Our track record of stable asset performance continues to attract reliable sources of capital at a lower cost.”

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