(RTTNews) - Diversified Energy Company Plc (DEC), an owner and operator of natural gas and oil wells, on Monday announced the acquisition of operated natural gas properties and related facilities located within Virginia, West Virginia, and Alabama from Summit Natural Resources for around $45 million to be fully funded through cash on hand and current liquidity.
The transaction, expected to be closed in the first quarter of 2025, includes 300 net producing wells that are located within Diversified's operational footprint in the Appalachian states of Virginia and West Virginia.
It also includes 265 net-producing coal mine methane or CMM wells located within Alabama that are highly proximate to Diversified's corporate headquarters in Birmingham, Alabama.
With this acquisition, the company anticipates capturing additional revenue from the sale of incremental environmental credits with its growth in the production of coal mine methane.
These assets have a current production capacity of around 12 MMcfepd, with PDP reserves of 65 Bcfe or 11 MMBoe.
Excluding items, for the full year 2025, the assets are expected to generate EBITDA of around $12 million.
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