According to Rusty Hutson Jr., the chief executive of Diversified Energy, the move underscores the company’s readiness to navigate the evolving market dynamics. “The gas market is sending a clear signal today: there is too much supply in the marketplace,” Hutson emphasized. “We believe Diversified is one of the best-positioned operators to take advantage of this lower commodity price marketplace. We are highly hedged in 2024.”
Further enriching the deal is an additional $90 million allocated for deferred cash payments to Oaktree. Diversified Energy has outlined plans to finance the acquisition through a combination of cash reserves and potential divestment of non-core assets or the issuance of new shares.
Navigating Regulatory Waters
As per the U.K.’s listing rules, this acquisition constitutes a Class 1 transaction for Diversified Energy. Consequently, the deal’s finalization hinges on securing approval from 75% of the company’s shareholders at an impending general meeting. Such transactions are triggered when a premium listed company acquires assets exceeding 25% of its own value.
