Company Announcements

Diversified Closes Haynesville Divestiture

Source: RNS
RNS Number : 8628W
Diversified Energy Company PLC
29 December 2021

29 December 2021



Diversified Energy Company PLC

("Diversified" or the "Company")


Diversified Closes Sale of Haynesville Undeveloped Acreage


Diversified Energy (LSE: DEC) is pleased to announce the closing of its sale of certain predominantly undeveloped Haynesville acreage in Texas as first announced on 12 November 2021. Diversified and Oaktree Capital Management, L.P. ("Oaktree") divested their working interests in the acreage for a total cash consideration of approximately $67.4 million (net $34.6 million to Diversified) after closing price adjustments. A second closing under the transaction of up to approximately $4 million (net $2 million to Diversified) may be conducted at a date in the near future.


The sale of acreage represented approximately 1,700 net Mcf per day of production as of November, 2021, or just 2% of the production that Diversified originally acquired as part of the Tanos Energy Holdings III LLC ("Tanos") deal in August 2021. Consistent with previous acquisitions, Diversified ascribed no value to the undeveloped Haynesville leasehold though this divestiture effectively reduces the Company's investment in the Assets Diversified acquired from Tanos by 29% to $83 million from the original $118 million(a), net of purchase price adjustments. The Company's sale of the Assets reflects its proven ability to purchase predominantly PDP (proved, developed, producing) assets at low multiples and drive further value through the strategic monetisation of undeveloped upside potential and non-strategic assets.


Rusty Hutson, Jr., CEO of the Company, commented:


"Monetizing a portion of the undeveloped Haynesville acreage we acquired in the Tanos transaction marks a strong finish to an exceptional year for Diversified and boosts our returns from that acquisition by reducing our purchase price by nearly 30%. Using the nearly $35 million of proceeds to reduce the borrowings on our revolving credit facility enhances our financial flexibility as we evaluate other value-accretive opportunities. We enter 2022 with momentum as we integrate our Central Region assets, progress our comprehensive ESG initiatives and remain ever focused on opportunities to expand our portfolio of producing assets."




Excludes certain below-market natural gas hedge contracts through 2023 assumed by Diversified, as previously announced via RNS on 05 July 2021


For Company-specific items, refer also to the Glossary of Terms and/or Alternative Performance Measures found in the Company's 2020 Annual Report and Interim Results for the Six Months Ended 30 June 2021



For further information, please contact:

Diversified Energy Company PLC

+1 205 408 0909

Jim Sheehan


+44 20 7466 5000

Financial Public Relations

Ben Romney

Chris Judd

Jon Krinks

James Husband


About Diversified Energy Company PLC

Diversified Energy Company PLC is an independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets.







This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.