Rusty Hutson Jr., CEO of Diversified Energy, described the acquisition as “attractively priced” and emphasized the company’s commitment to integrating the new assets efficiently. “We are excited to onboard our new employees from Crescent Pass and begin the process of efficient integration and deployment of smarter asset management along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business,” Hutson said.
Strategic Growth and Financial Structure
The acquisition of natural gas assets marks another milestone for Diversified Energy, following its $410 million purchase of similar assets from Oaktree Capital Management LP in March. The company operates primarily in the Appalachian Basin and the Central Region of the U.S.
As part of the consideration for the deal, Diversified Energy issued approximately 2.25 million new shares to Crescent Pass Energy. The transaction did not require shareholder approval.
Hutson noted in July that this stock-and-cash deal represents an “evolution” of the company’s funding sources and highlights the strategic importance of its recent listing on the New York Stock Exchange.
Market Reaction
Shares in Diversified Energy, trading on the FTSE 250 index of the London Stock Exchange, were up 0.9% to 1,021 pence on Friday afternoon, compared to 1,012 pence at Thursday’s close.
About Crescent Pass Energy
Crescent Pass Energy, based in Houston, is a privately held exploration and production company backed by Texas-based private equity firm Talara Capital Management LLC. Talara invested $75 million into Crescent Pass in 2019.
