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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.
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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.
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