Diversified Gets More Diversified With Acquisition
12 October 2018
Continuing to add to the upstream and midstream assets acquired from EQT earlier this year, Diversified Gas & Oil PLC said it has purchased Core Appalachia Holding Co LLC from TCFII Core LLC for approximately $183 million.
On the upstream side, Core operated approximately 5000 wells in Kentucky, West Virginia and Virginia. Midstream assets include approximately 4100 miles of pipelines and 47,000 hp of compression which increases the company’s total midstream assets to more than 10,500 miles of pipelines covering a significant portion of Kentucky and West Virginia
“Our strategic acquisition of Core will allow us to unlock significant value from our enlarged base of assets in Kentucky and West Virginia that would otherwise not be achievable on a stand-alone basis,” said Diversified Gas & Oil CEO Rusty Hutson. “Core’s assets are highly contiguous to the assets we acquired from EQT earlier this year and materially expand our midstream footprint in Southern Appalachia.
“We expect to deliver both immediate and near-term synergies by combining these assets, resulting in higher revenues and lower operating expenses which will support our exceptional EBITDA margins across the portfolio and drive dividend payouts higher.”