Diversified Closes Summit Natural Resources Acquisition and Tenth Asset Backed Securitization Issuance

Core Insights - Diversified Energy Company PLC has successfully completed the acquisition of operated natural gas properties and related midstream pipeline infrastructure from Summit Natural Resources, enhancing its operational capabilities and cash flow potential [1][6][8] - The company has also closed an asset-backed securitization (ABS) refinancing, which is expected to improve cash flows and margins through a better hedging profile and strategic refinancing [2][8] Acquisition Highlights - The acquisition net purchase price is approximately $42 million, with current net production estimated at around 12 million cubic feet equivalent per day (MMcfepd) [7] - Proven developed producing (PDP) reserves are reported at 65 billion cubic feet equivalent (Bcfe), with a present value (PV-10) of approximately$55 million [7] - The acquisition is expected to generate an estimated adjusted EBITDA of around $12 million for 2025, with existing coal mine methane (CMM) volumes providing opportunities for future production and environmental credits [7] ABS Issuance Highlights - The ABS X note is structured as a master trust with a total issuance of$530 million, significantly oversubscribed at 6.5 times, indicating strong demand from investors [7][8] - The notes are rated investment grade with a blended fixed coupon of approximately 6.4% in the A tranche, reflecting the quality of the cash flows from the company's assets [7][8] - Strategic hedges are expected to add approximately 40% ($38 million) to the EBITDA of the refinanced assets, enhancing overall financial performance [7][8] Sustainability Commitment - The company has received a Second Party Opinion from Sustainable Fitch, confirming that the key performance indicators (KPIs) of the ABS align with the International Capital Markets Association (ICMA) framework for sustainability-linked bond principles [5]