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Diversified Energy Acquires Gas Properties for $45 Million

Diversified Energy Company Plc has announced a strategic acquisition of natural gas properties valued at $45 million. This move is expected to enhance the company's operational footprint and revenue.

Date: 
AI Rating:   7
Transaction Details: Diversified Energy Company Plc is acquiring natural gas properties from Summit Natural Resources for approximately $45 million, funded through cash on hand and current liquidity. This acquisition involves 300 net producing wells in Virginia and West Virginia as well as 265 net-producing coal mine methane (CMM) wells in Alabama.

Production Capacity: These new assets boast a current production capacity of around 12 MMcfepd and Proved Developed Producing (PDP) reserves of 65 Bcfe, which translates to approximately 11 MMBoe.

EBITDA Expectations: For the full year 2025, the assets are projected to generate an EBITDA of about $12 million, indicating a strong potential for profitability.

This acquisition may significantly affect Diversified Energy's revenue growth as the company anticipates capturing additional revenue from environmental credits through increased production of coal mine methane. There is no information in the report regarding Earnings Per Share (EPS), Net Income, Profit Margins, Free Cash Flow (FCF), or Return on Equity (ROE).
Stocks:  DEC