Diversified Energy plans share offering to fund acquisition

Published 19/02/2025, 13:32
Diversified Energy plans share offering to fund acquisition

NEW YORK - Diversified Energy Company PLC (LSE: DEC; NYSE: DEC), an independent energy company engaged in natural gas and liquids production, has announced its intention to offer up to 8.5 million ordinary shares in a public offering in the United States. The company has also stated that it may grant underwriters the option to purchase up to an additional 850,000 shares.

Citigroup (NYSE:C) and Mizuho (NYSE:MFG) are serving as joint book-running managers and underwriters for the offering, which is subject to market and other conditions. There is no certainty regarding the completion or the exact terms of the offering at this stage.

The proceeds from the offering are earmarked for repaying part of the debt that Diversified expects to incur from its proposed acquisition of Maverick Natural Resources, LLC, which was announced on January 27, 2025. If the acquisition does not proceed, the company intends to use the funds to repay debt and for general corporate purposes.

The offering is not contingent upon the acquisition, nor is the acquisition dependent on the offering’s success. A shelf registration statement for the securities was filed with the U.S. Securities and Exchange Commission (SEC) on February 11, 2025, and has become effective.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy the shares, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

Diversified Energy is known for acquiring and improving long-life assets, focusing on enhancing environmental and operational performance before retiring them responsibly. The company has been recognized for its sustainability leadership in the energy sector.

The information in this article is based on a press release statement from Diversified Energy Company PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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