Diversified Energy Company PLC (DEC) has agreed to purchase high‑working‑interest natural gas assets and related facilities in East Texas from Sheridan Production for $245 million in cash.
The transaction will add roughly 62 MMcfepd, or about 10 Mboepd, of net production to DEC’s portfolio and bring 397 Bcfe of proved developed producing reserves, valued at a PV‑10 of $310 million. Management estimates the assets will generate $52 million of EBITDA before synergies.
The acquisition is described as a “perfect fit” with DEC’s existing East Texas operations. CEO Rusty Hutson Jr. said, “The target assets are a perfect fit with our existing East Texas operations and offer meaningful opportunities for material synergies upon completion of the Acquisition.” The company plans to leverage its Smarter Asset Management framework to improve production, enhance margins, and grow free cash flow.
The deal comes on the heels of DEC’s record 2025 results, in which the company posted $1.829 billion in revenue, $342 million in net income, and $956 million in adjusted EBITDA—outperforming guidance and marking the strongest year on record. The acquisition is positioned to accelerate the company’s growth trajectory by adding scale and complementary assets that can be integrated quickly to deliver the projected $52 million of EBITDA.
Investors reacted positively to the announcement, citing the accretive nature of the deal and the potential for operational synergies. Analysts highlighted that the acquisition aligns with DEC’s strategy of acquiring mature, low‑decline assets and that the expected synergies could further improve margins under the Smarter Asset Management approach.
DEC will fund the purchase through existing liquidity under its senior secured bank facility and expects to close the transaction in the second quarter of 2026, subject to customary closing conditions.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.