Diversified Energy Co. plc said Thursday it is acquiring about 1,500 producing Midcontinent wells from ConocoPhillips.
The $240 million Anadarko Basin bolt-on, funded with existing cash and debt, would expand Diversified’s Oklahoma and Texas footprint in the company’s Central Region. The former Appalachian Basin pure play also holds assets in the gassy Barnett and Haynesville shales.
“Building on our success in Appalachia, we are excited to increase our holdings within the Central Region that position us to drive greater synergies and unlock additional shareholder value through scale,” said DiversifiedCEO Rusty Hutson Jr.
Management said it would operate about 60% of the new wells’ net production of 9,000 boe/d (71% gas-weighted) across 250,000 net acres.
The new production would boost Birmingham, AL-based Diversified’s total output by 6%, based on the firm’s 1Q2022 exit rate of 136,000 boe/d, the company noted.
The ConocoPhillips deal marks the second Midcontinent acquisition for Diversified. It entered the area last year by adding natural gas-weighted Tapstone Energy Holdings LLC assets.
Diversified, which said it plans to retain an undisclosed number of ConocoPhillips employees, expects to close the transaction in late September. The deal’s effective date was June 1.
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