Congratulations to Diversified Energy, who just announced they “entered into a Purchase and Sale Agreement (“PSA”) to acquire certain upstream assets and related facilities (the “Assets”) in Oklahoma and Texas, within the Company’s Central Region, from ConocoPhillips Company (the “Seller”) (collectively with the Assets, the “Acquisition”).”

  • From what we can tell, this acquisition is related to the assets that Wells Fargo had marketing material on back in March 2022. 
  • Read Complete Press Release Here
  • View Acquisition Presentation Here

Central Region Acquisition Highlights

  • Purchase price of  $240 million before customary purchase price adjustments
  • Estimated net price of ~$210 million (“Acquisition Cost”) with a late September closing (“the Closing”)
  • Fully financed from existing liquidity
  • Cash margins(a) of ~70% on estimated Adjusted EBITDA of $82 million(b)
  • Uplift of ~20% to Diversified’s 2021 Hedged Adjusted EBITDA per share(c)
  • Acquisition Cost represents a ~2.5x purchase multiple(d) and PV17 of PDP reserves
  • Pro-forma Net Debt / Adjusted EBITDA of 2.2x(e) with ~95% of debt in fully amortizing notes
  • Consolidated corporate declines unchanged at ~8.5%(f) 
  • Net production(g) increase of ~9 MBoepd (~52 MMcfepd; 60% operated), (+6% vs 1Q22 exit rate)
  • Upside available through field-level synergies, Smarter Asset Management acreage swaps, non-operated development opportunities

Source: Diversified Energy

Source: Diversified Energy

The Convey640 platform allows users to easily perform additional research and analysis.

In a matter of seconds, we were able to generate a possible well list, view production data for each well, view completion files, a GIS map, and additional information! Screenshots were taken directly from the platform. 

Subscribers, to generate the below data navigate to the Records & Productions Module and search “Burlington” in the operator column.
It appears that the acquisition is primarily wells that are currently listed as being operated by Burlington Resources Oil & Gas LP. In 2006, Burlington was acquired by ConocoPhillips. 

Not in Stratigraphic Order



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