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    Diversified closes US Tapstone deal

Summary

It marks the company's fourth purchase in the space of a year.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, United States

Diversified closes US Tapstone deal

London-listed Diversified Energy has closed the purchase of Tapstone Energy, giving it control of oil and gas wells in Texas and Oklahoma, the company said in a stock filing on December 8.

Diversified paired up with co-investor Oaktree Capital Management for the transaction, which was first announced in October and marks its fourth purchase in the region within half a year. In May the company acquired $135mn of upstream assets in Louisiana from Indigo Minerals, and it went on to buy fields from Blackbeard Operating in July and Tanos Energy in August.

Diversified will pay $181mn for its share of the assets, which it estimated currently produce around 12,000 barrels of oil equivalent/day, of which 61% is gas. It expects to gain $95mn of adjusted EBITDA from the business over the next year.

The company funded the deal with a draw from its $825mn credit facility.