The assets’ net production stands at 38 million cubic feet equivalent per day. Credit: Retina Creative via Pixabay.

Diversified Energy has closed the acquisition of interest, operated natural gas properties and related facilities in eastern Texas, US, from Crescent Pass Energy.

The acquisition is valued at $101m after customary purchase price adjustments.

As part of the deal signed in July 2024, the initial purchase price of the assets was $106m, but after customary adjustments, the net purchase price was finalised at $101m.

The properties acquired by Diversified Energy boast proven developed producing reserves of approximately 170 billion cubic feet equivalent.

Currently, the net production from these assets stands at 38 million cubic feet equivalent per day, which translates to roughly 6,000 barrels of oil equivalent per day.

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In line with the terms previously disclosed, the acquisition’s net consideration involved a mix of financial strategies.

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Diversified Energy issued 2,249,650 new US-dollar-denominated ordinary shares to Crescent Pass Energy, which are subject to a customary commercial lock-up agreement.

This issuance represents about 4.77% of Diversified Energy’s existing issued share capital.

Additionally, a cash consideration of $71m was paid, sourced from a senior secured bank facility backed by the acquired assets and the company’s existing liquidity.

Diversified Energy CEO Rusty Hutson Jr said: “We are excited to announce the completion of another attractively priced acquisition of Central Region assets, which stands to benefit Diversified as a result of our continued growth in scale and density throughout the asset footprint.

“We are eager to welcome our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management, along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business.”