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Diversified Energy

March 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DEC
  • Price:
  • 108p
Diversified has announced the acquisition of a package of assets from Tanos Energy, comprising wells and facilities in Louisiana and Texas. The consideration is US$250m and is being funded by new debt and a placing that raised US$163m at 105p. Following the acquisition and fundraising it estimates pro-forma year-end 2022 leverage of 2.1x EBITDA / net debt.   Diversified is buying 150 operated production wells currently yielding around 17,000 boepd, of which around 76% is gas. The assets offer the same long-life, gas-weighted production potential and low natural decline rates as its broader portfolio and are located within its core Central Region area, providing an opportunity for considerable synergies.  The package ...

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