Diversified Energy Company to cultivate new ‘region of focus’ as it aims to replicate Appalachia suc

Diversified Energy Company PLC is an independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets.

(, ) has appointed Sylvia Kerrigan to its board as an independent non-executive director.

Kerrigan brings more than a decade of board room experience and several decades as an executive for the energy, industrial and transportation sectors, the company highlighted.

She previously worked or Marathon Oil in various roles including compliance, public policy, corporate communications and information governance. Prior to leaving Marathon in 2017 Kerrigan was executive vice president, general counsel and secretary.

“We are delighted to welcome Sylvia and her wealth of experience to Diversified’s board,” said DEC chair David Johnson.

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) struck its latest deal in the United States, picking up a package of predominantly gas producing assets in Oklahoma for US$218mln in cash.

It is acquiring interests in around 600 operating wells from Tapstone Energy Holdings. They presently yield about 12,000 barrels of oil equivalent per day, of which around 80% is either gas or natural gas liquids.

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF, FRA:DG2) (LSE:DEC) has expanded and extended its credit facility, with the borrowing base increasing by US$200mln to US$625mln.

The maturity date on DEC’s credit facility is extended by two years to August 2025, with the cost set at LIBOR plus 2.75% to 3.75% depending on utilisation.

Diversified Gas & Oil PLC‘s (LON:DGOC) acquisition of a package of assets in Louisiana should come as “no surprise”, according to analysts at broker SP Angel.

In a note on Friday, analysts said it was “a buyers’ market in the US” and the US$135mln acquisition of the Cotton Valley package, which includes some 16,000 barrels oil equivalent per day (boepd) of production across 780 net operated wells, “appears to be typically attractive” and presented “clear opportunities” for growth through operational synergies.

SP Angel added that investors “can look forward to a stable dividend policy” given the company’s “strong balance sheet, efficient cost structure, improved commodity price outlook, strong hedge protection and a robust outlook of potential accretive growth”.

Diversified Energy (LON:DEC) CEO Rusty Hutson joins Proactive London’s Katie Pilbeam to go through some of the key themes from their first half of 2021.

Hutson also explains the pre-tax loss as a result of non-cash impairment caused by their hedging positions, a common occurrence for all energy companies that hedge.

With three material acquisitions giving the firm a foothold in a new region, Hutson details the significance of this new region entry (Louisiana, Texas, Oklahoma and Arkansas) and how they plan to maximise value from all these operations.