Diversified Energy to Buy East Texas Gas Assets for $245M, Adds 62 MMcfepd
Diversified Energy Company agreed to acquire high working interests in East Texas natural gas assets for $245 million cash funded via its senior secured bank facility, targeting closing in Q2 2026 under customary conditions. The assets include 62 MMcfepd of net production, 397 Bcfe of proved developed reserves (PV-10 $310 million) and 75,000 leasehold acres, forecast to generate about $52 million of EBITDA over the next 12 months before synergies.
1. Acquisition Details
Diversified Energy Company has entered into a $245 million cash agreement to acquire high working interests in natural gas assets and related facilities in East Texas. The purchase will be funded using existing liquidity under its senior secured bank facility and is expected to close in the second quarter of 2026, subject to customary conditions.
2. Asset Profile
The acquired package delivers approximately 62 MMcfepd (around 10 Mboepd) of 2026 net production with an annual decline rate of roughly 6% and a production mix of about 72% natural gas. It also includes 397 Bcfe of proved developed producing reserves with a PV-10 of $310 million and approximately 75,000 acres of leasehold.
3. Financial Impact
Diversified Energy forecasts the assets will contribute about $52 million of EBITDA over the next twelve months before any synergies. The company expects to leverage its Smarter Asset Management approach to improve production, enhance margins and grow free cash flow.
4. Strategic Rationale
Chief Executive Rusty Hutson Jr. praised the assets as a “perfect fit” for the existing East Texas footprint and highlighted meaningful opportunities for operational synergies. The transaction aligns with the strategy to acquire low-decline, cash-generating assets at attractive valuations to deliver shareholder value.