US: Diversified Gas and Oil announces conditional acquisition in new regional focus area
03 May 2021
$135 million (gross) conditional acquisition of certain
Cotton Valley upstream assets and related facilities primarily in the state of Louisiana from
Indigo Minerals and an operations and trading update for the quarter ended 31 March 2021.
The Acquisition represents the first for the Company in its newly identified Central Regional Focus Area ( RFA ) where it expects to replicate its proven business model on an expanded opportunity set:
Acquisition Highlights
~2.9x multiple on ~$40MM of Adjusted EBITDA (Hedged)(a) before anticipated synergies
13% accretive to the Company s 2020 Adjusted EBITDA(b)
PV10 ~$175MM as of 1 March 2021 effective date and based on 16 April 2021 NYMEX strip price
BIRMINGHAM, AL / ACCESSWIRE / April 30, 2021 / London LSE-quoted Diversified Gas & Oil PLC (LSE:DGOC) ("DGO" or "the Company"), announces the $135 million (gross) conditional acquisition of certain Cotton
Diversified Gas & Oil PLC (LSE: DGOC) announces the $135 million (gross) conditional acquisition of certain Cotton Valley upstream assets and related facilities primarily in the state of Louisiana ( the Assets ) from Indigo Minerals LLC ( Indigo ), (the Acquisition ) and the following operations and trading update for the quarter ended 31 March 2021. The Acquisition represents the first for the Company in its newly identified Central Regional Focus Area ( RFA ) where it expects to replicate its proven business model on an expanded opportunity set: • Acquisition Highlights ◦ ~2.9x multiple on ~$40MM of Adjusted EBITDA (Hedged)
(a) before anticipated synergies
(b) ◦ PV10 ~$175MM as of 1 March 2021 effective date and based on 16 April 2021 NYMEX strip price
Diversified Gas & Oil PLC Announces Conditional Acquisition in New Regional Focus Area and Trading Update
BIRMINGHAM, AL / ACCESSWIRE / April 30, 2021 / London LSE-quoted Diversified Gas & Oil PLC (LSE:DGOC) ( DGO or the Company ), announces the $135 million (gross) conditional acquisition of certain Cotton Valley upstream assets and related facilities primarily in the state of Louisiana ( the Assets ) from Indigo Minerals LLC ( Indigo ), (the Acquisition ) and the following operations and trading update for the quarter ended March 31, 2021.
The Acquisition represents the first for the Company in its newly identified Central Regional Focus Area ( RFA ) where it expects to replicate its proven business model on an expanded opportunity set:
Final Results for the Year Ended 31 December 2020 Diversified Gas & Oil PLC (LSE: DGOC) is pleased to announce its annual results for the full-year ended 31 December 2020. Key Highlights ◦ Exceptionally low corporate annual decline rate of ~7% including both conventional and unconventional wells ◦ DGO stands as the largest independent producer on the London Stock Exchange ( LSE ) • Hedged Adjusted EBITDA
1 of $301 million (up 10% over $273 million in 2019) bolstered by hedge cash settlements of $145 million that significantly offset low natural gas prices ◦ Indicative of the improved natural gas pricing outlook that creates a non-cash pre-tax mark-to-market hedge valuation loss of $239 million, the Group reported a net loss of $23 million in 2020 (2019: $99 million net income inclusive of a pre-tax non-cash mark-to-market hedge valuation gain of $20 million)