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BIRMINGHAM, Ala. - Diversified Energy Company PLC (LSE:DEC; NYSE:DEC), a $1.19 billion market cap energy firm trading slightly above its InvestingPro Fair Value, announced Tuesday that certain investment funds managed by EIG, FS/EIG Advisor, LLC, and FS/KKR Advisor, LLC are launching an underwritten public secondary offering of 5,713,353 ordinary shares.
The selling stockholders also plan to grant underwriters a 30-day option to purchase up to an additional 857,002 shares at the public offering price, less underwriting discount.
The Diversified Employee Benefit Trust has indicated interest in purchasing up to 750,000 shares at the public offering price, though no commitment has been made.
The offering consists entirely of shares sold by the selling stockholders, who will receive all net proceeds. Diversified Energy is not offering any shares and will not receive any proceeds from the transaction.
Mizuho and Raymond James are acting as joint book-running managers and representatives of the underwriters, with Citigroup also serving as a joint book-running manager.
The offering is being made through a shelf registration statement filed with the U.S. Securities and Exchange Commission on May 16, 2025.
Diversified Energy focuses on acquiring and managing natural gas and liquids production, transportation, marketing, and well retirement assets. The company’s strategy involves improving environmental and operational performance of acquired assets until their eventual retirement.
This article is based on a press release statement from Diversified Energy Company PLC.
In other recent news, Diversified Energy has announced significant developments impacting its operations and financial outlook. The company revealed a $550 million acquisition of Canvas Energy, which is expected to expand its asset base in Oklahoma. Following this announcement, Mizuho raised its price target for Diversified Energy to $27.00, up from $23.00, while maintaining an Outperform rating. Mizuho estimates the acquisition will lead to an 11% increase in cash flow from operations per share and a 24% increase in free cash flow per share by 2026.
Additionally, Diversified Energy entered into an asset-backed securities funding agreement with Carlyle’s structured credit group for up to $2 billion. This arrangement will target larger deals of $250 million or more, with Carlyle retaining a residual equity interest. KeyBanc has reiterated its Overweight rating for Diversified Energy with a $17.00 price target following meetings with company management in Oklahoma City. These recent developments highlight the company’s strategic moves to bolster its financial position and operational capabilities.
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