Diversified Energy Finalizes Sale Of Appalachia Assets, To SPV, Retains 20% Interest And Operatorship
Portfolio Pulse from Benzinga Newsdesk
Diversified Energy has completed the sale of its producing assets in Appalachia to a Special Purpose Vehicle (SPV), DP Lion Equity Holdco LLC, retaining a 20% interest and operatorship. The transaction generated $200 million in proceeds, which were used to repay a portion of the company's debt and for general corporate purposes. The sale led to a 12% reduction in net debt and the assets sold had a PV-10 value of approximately $230 million.
January 02, 2024 | 7:28 am
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Diversified Energy has sold 80% of its interest in Appalachia assets for $200 million, retaining a 20% stake and operatorship. The proceeds will reduce net debt by 12% and were used to repay the company's Sustainability-Linked Loan.
The sale of assets is a significant financial move for Diversified Energy, likely to be viewed positively by investors as it strengthens the balance sheet by reducing debt. The retention of a 20% interest and operatorship ensures ongoing involvement in the assets, which may reassure investors about the company's operational continuity.
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