Diversified Energy raises $163m to fund acquisition of US upstream assets

Diversified Energy said on Thursday that it raised around $163m (£134.9m) in a placing to help fund the acquisition of upstream assets and related infrastructure in its Central Region from Tanos for $250m.

The fundraising was completed at 105p a share, which is a 5.2% discount to the closing mid-market price on Wednesday.

Announcing the acquisition and fundraising late on Wednesday, the company’s chief executive Rusty Hutson said: "Today's announcement marks an exciting start to the year with an accretive acquisition contiguous to our existing Central Region assets. This transaction will drive additional synergies of scale and reduce the combined assets' unit-level expenses to increase already high margins.

"Accordingly, this acquisition will nicely align with our emphasis on generating free cash flow while increasing our exposure to the premium Gulf Coast market, providing access to the higher realized pricing, lower regional differentials, and the long-term demand pull from the growth in LNG markets."