![Diversified Closes $377MM Oaktree Deal](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/06/diversified-energy-ma-375mm.jpg?itok=N5SxIZ5u)
(Source: Shutterstock.com)
Diversified Energy has closed its acquisition of working interests in Oklahoma, East Texas and Louisiana from Oaktree Capital Management, according to a June 7 press release.
The deal was announced in March with a $410 million price tag. Diversified paid $377 million after customary purchase price adjustments, the company said.
Diversified will also pay $83 million in deferred cash payments to Oaktree and assume approximately $120 million of debt.
The acquired assets have proved developed producing reserves of 510 Bcfe and a current net production of 122 MMcf/d.
The acquisition grows Diversified’s scale, margins and free cash flow, Diversified CEO Rusty Hutson Jr. said in the deal’s closing announcement.
"As the natural acquirer of Oaktree's working interest in the Central Region, the transaction was a unique opportunity to consolidate these assets and represents the culmination of a successful, multi-year partnership with Oaktree,” Hutson said.
RELATED
Diversified Energy Buys NatGas Assets in Runup to LNG Exports
Diversified also saw its borrowing base increase in connect the acquisition — up by 26%, or $80 million, to $385 million. Diversified’s estimated post-transaction liquidity is approximately $130 million.
“I would also like to thank our financial partners for their continued support, demonstrated by the increase in the borrowing base of our sustainability linked loan, and the highly successful ABS VIII financing," Hutson said.
Recommended Reading
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
PGS Gets Greenlight to Begin Surveying for Petrobras 4D Contract
2024-05-30 - After a long permitting process, PGS has secured the last permit needed to begin its large 4D survey contract with Petrobras at the Barracuda-Caratinga field offshore Brazil.
Chemex Agrees to FEED Contract for Verde’s NatGas-to-gasoline Plant
2024-06-05 - Verde said the project will be located in Martin County, Texas. Completion of Chemex’s FEED work is anticipated in early 2025.