Diversified Energy Co PLC on Monday said it has acquired natural gas properties from Summit Natural Resources for around $45 million.

The Birmingham, Alabama-based natural gas producer said the purchase of the facilities in Virginia, West Virginia and Alabama will be funded with cash on hand and current liquidity.

The facilities have a current net production of around 12 million cubic feet equivalent per day and proved developed producing reserves of 65 billion cubic feet equivalent with estimated PV-10 value of $55 million.

The company said it has an estimated 2025 adjusted earnings before interest, tax, depreciation and amortisation of $12 million.

Diversified Energy said the facilities also have existing coal mine methane volumes with the opportunity to extend production, and 300 wells in Appalachia overlap with existing operations which allows for increased cash margins.

The acquisition is expected to close during the first quarter of 2025.

Chief Executive Officer Rusty Hutson said: ‘This asset package is strategically located within our existing southern Appalachia operations and is uniquely positioned to benefit from the operational expertise of our field teams...The acquisition is anchored with stable production and strategic midstream assets, which provide optionality for existing production volumes to move to premium-priced markets.

‘We continue to believe there is a sizeable backlog of organic coal mine methane cash flow growth within our current Appalachian portfolio, and this acquisition highlights our ability to leverage existing capabilities, assets, and intellectual capital to grow this segment of our revenue stream inorganically,’ he said.

Shares in Diversified Energy were down 2.0% to 1,365.77 pence in London on Monday morning.

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