Diversified Energy raises $225.0m via placing and offer

Oil and gas production company Diversified Energy has raised $225.0m by way of a placing and an offer of new ordinary shares of 112.0p each.

Diversified Energy said on Friday that the fundraising represented 19.99% of its existing ordinary share capital, or 141.54m new ordinary shares in total, with the 112.0p price tag marking a 2.5% discount to its 30-day volume-weighted average price and an 8.3% discount from the stock's closing mid-market price on 20 May.

The FTSE 250-listed firm will use net proceeds from the placing and offer to fund the acquisition of certain upstream assets from Blackbeard Operating and Indigo Minerals, as well as to repay amounts drawn down on its revolving credit facility.

Chief executive Rusty Hutson said: "This placing, through the assets we are acquiring, delivers share-level earnings accretion and strengthens our balance sheet to position us for additional success in our Central Regional Focus Area and within Appalachia."

As of 0825 BST, Diversified Energy shares were down 9.98% at 110.0p.