Diversified Energy in $410m US gas acquisition

Oil and gas explorer Diversified Energy posted a rise in earnings despite weaker prices and announced the $410m acquisition of producing reserves in the central region of the US.

The company said 2023 annual adjusted core profit came in at $543m from $503m a year earlier and hit record average net daily production 821 million cubic feet of gas, or 137 million barrels of oil equivalent.

Net income came in at $760m, inclusive of $688m in tax-effected, non-cash unsettled derivative fair value adjustments.

Diversified is buying an interest in around of 510 billion cubic feet of gas reserves from Oaktree Capital Management which will offset natural declines with expected 122 million cubic feet a day in extra production, which will lift overall output by 15%.

Reporting by Frank Prenesti for Sharecast.com