(RTTNews) - Energy company, Diversified Energy Co. PLC (DEC.L), said Monday that it signed a definitive agreement to buy Maverick Natural Resources, a portfolio company of EIG. The deal, which is valued at approximately $1.275 billion in cash and stock, is expected to be completed in the first half of 2025.
The $1.275 billion acquisition, including debt, is valued at 3.3x LTM EBITDA and will be funded through debt assumption, new Diversified shares, and cash, with adjustments based on Maverick's RBL at closing.
The acquisition of Maverick by Diversified unites complementary assets, boosting production, enhancing cash flow, and strengthening sustainability and profitability. Part of the acquisition enhances Diversified's Western Anadarko operations and adds new Permian assets with multi-zone potential in the Northern Delaware Basin.
The combined company will have a $3.8 billion enterprise value, operate in five regions, and produce around 1,200 MMcfe/d (200 Mboe/d).
Upon completion, EIG will hold about 20 percent of the outstanding shares, including previous holdings, under a standard lock-up agreement. Diversified Gas & Oil Corporation may have to pay $50 million break fee if the acquisition falls through under certain conditions.
After the acquisition, the Board will have eight directors, including six from Diversified's current Board and two appointed by EIG.
Diversified's David Turner has been named chair of the Remuneration Committee and joined the Nomination and Governance Committee, while Sandy Stash will become lead independent director, both effective January 25.
Sylvia Kerrigan resigned from the Board of Directors on January 24, 2025, due to other commitments, after serving since 2021.
On Friday, Diversified Energy had closed 3.41% lesser at $1273 on the London Stock Exchange.
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