In a daring move amidst volatile market conditions, U.S. oil producer Diversified Energy has announced its intention to acquire natural gas assets worth a staggering $410 million from investment heavyweight Oaktree Capital. This strategic move, unveiled on Tuesday, includes provisions for hedging, providing a safety net against potential dips in gas prices.
Diversified Energy $410m gas acquisition : Sealing the Deal
Diversified Energy Co. PLC, a prominent player listed on both the London Stock Exchange and the New York Stock Exchange, revealed that it has inked a conditional agreement with Oaktree Capital Management LP. The deal is set to encompass natural gas wells located in the central region of the United States, marking a significant expansion for Diversified Energy.
Legal guidance for Diversified Energy was provided by Latham & Watkins LLP, though specific counsel information for Oaktree remains undisclosed at the time of reporting.
Understanding the Terms
The hefty $410 million price tag includes a blend of financial instruments. Among these are $120 million in debt and $70 million worth of hedging contracts. Notably, the hedging agreements are poised to shield Diversified Energy from the recent turbulence in gas markets, offering a buffer against price fluctuations.
