Diversified Gas & Oil PLC Completion of Acquisition (1320V)
July 19 2018 - 2:00AM
UK Regulatory
TIDMDGOC
RNS Number : 1320V
Diversified Gas & Oil PLC
19 July 2018
19 July 2018
Diversified Gas & Oil PLC
("DGO" or the "Company")
Acquisition of EQT entities holding certain gas and oil assets
for $575 million
Diversified Gas & Oil PLC, the US based gas and oil
producer, is pleased to announce that on 18 July 2018 it completed
the acquisition of EQT Corporation's southern Appalachian producing
gas and oil and midstream assets (the "EQT Asset Acquisition"),
details of which were announced on 29 June 2018. The EQT Asset
Acquisition increases the Company's daily production by
approximately 115% to over 60,000 barrels of oil equivalent per
day, firmly establishing DGO as the largest gas and oil producer on
AIM. The EQT Asset Acquisition also included more than 6,400 miles
of gathering pipe and 59 compressor stations, which significantly
enhance the economics of the Company's production in this region of
the Appalachian Basin.
Inclusive of the producing and midstream assets, DGO paid cash
consideration of $575 million, subject to customary purchase price
adjustments. The Company financed the EQT Asset Acquisition from
its own cash resources following the successful Placing with net
proceeds of $240 million ($250 million, gross), which Shareholders
approved at the General Meeting held on 16 July 2018. Concurrently,
DGO has completed the previously announced increase of its
revolving credit facility to $1 billion with a current borrowing
base of $600 million. The bank syndicate, co-arranged by KeyBanc
Capital Markets, The Huntington National Bank, Citizens Bank, N.A.
and Branch Banking and Trust Company, includes five new lending
institutions for a total of 11 participating banks. Participant
banks include ING Capital LLC, IberiaBank, CIBC, Credit Agricole,
US Bank, CIT Bank, and First Tennessee.
Commenting on the completion of the EQT Asset Acquisition, CEO,
Rusty Hutson, Jr., said:
"Delivering on our stated objectives has been a guiding
principal since our admission to AIM in February 2017. The addition
of these high-quality assets to our growing portfolio and their
accretive impact on earnings are tangible results that benefit our
Shareholders, and represent a significant milestone in the
evolution of our clearly stated strategy. Completing a transaction
of this size further increases DGO's visibility of the preferred
and capable purchaser of similar assets.
We now turn our attention to the optimisation and integration of
these assets into our expanding operations. To help accomplish this
task, I am excited to welcome to Diversified the more than 250
exceptional operations personnel who have cared for these assets
for years and in many cases, for decades. Their commitment to
excellence is a perfect complement to our existing Company culture,
and I am confident that the team's combined efforts will yield even
better results.
I remain excited about our future and continuing to deliver
growth and strong operating results for Shareholders."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Diversified Gas & Oil PLC
Rusty Hutson Jr., Chief Executive Officer
Brad Gray, Chief Operating Officer and
Finance Director
Eric Williams, Chief Financial Officer
www.dgoc.com + 1 (205) 408 0909
Smith & Williamson Corporate Finance Limited
(Nominated Adviser)
Russell Cook
Katy Birkin
Ben Jeynes +44 (0)20 7131 4000
Mirabaud Securities Limited
(Joint Broker)
Peter Krens
Edward Haig-Thomas +44 (0)20 3167 7221
Stifel Nicolaus Europe Limited
(Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0)20 7710 7600
Stifel Nicolaus & Company, Incorporated
(US Financial Adviser)
Sameer Parasnis
Chris Gibson +1 713 237 4516
Buchanan
(Financial Public Relations)
Ben Romney
Chris Judd
Henry Wilson
dgo@buchanan.uk.com +44 (0)20 7466 5000
Unless shown, the defined terms used in this announcement have
the same meaning as set out in the Company's Admission Document
dated 29 June 2018.
This information is provided by RNS, the news service of the
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END
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