# Diversified Energy sells non-operated assets for $40 million

- Link: https://www.directorstalkinterviews.com/diversified-energy-sells-non-operated-assets-for-40-million/4121122845
- Published: 2023-06-28T07:45:02+01:00
- Author: Amilia Stone

**[Diversified Energy Company plc](https://www.directorstalkinterviews.com/company/diversified-energy-company-plc/dec.l)**(
[LON:DEC](https://www.directorstalkinterviews.com/company/diversified-energy-company-plc/dec.l))
has announced the sale of certain non-core, non-operated assets within Diversified’s
Central Region for gross consideration of ~$40 million..

The Assets include approximately 200 net, non-operated wells producing ~3Mboepd (
~17 MMcfepd). The gross consideration represents an approximate 4 times next twelve
months cash flow multiple and includes ~85,000 associated net acres located in Oklahoma
and Texas. The Transaction also demonstrates Diversified’s ability to monetize its
non-core assets, adds ~$40 million to the Company’s liquidity, and is well-aligned
with Diversified’s strategic focus on operated PDP properties that benefit from 
the regional scale, vertical integration, and continuous application of Smarter 
Asset Management that underpin the Company’s industry-leading production declines.

> **Commenting on the Transaction, CEO Rusty Hutson, Jr. said:**
> _“This divestiture of non-operated properties underscores our commitment to optimise
> the assets we operate while strategically realising value from assets better suited
> for other operators and owners. Selling these assets with operating costs higher
> than those we operate positions us to further reduce our Central Region lease 
> operating expenses and improve operating margins. The sale aligns with our initiative
> to realize value from non-core and undeveloped acreage. We will use the proceeds
> from this transaction to increase our liquidity that we can deploy towards our
> operated PDP-focused strategy designed to generate sustainable cash flows.”_

Stifel served as the exclusive financial advisor to Diversified Energy in connection
with the sale.

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