Diversified closes US Tapstone deal
London-listed Diversified Energy has closed the purchase of Tapstone Energy, giving it control of oil and gas wells in Texas and Oklahoma, the company said in a stock filing on December 8.
Diversified paired up with co-investor Oaktree Capital Management for the transaction, which was first announced in October and marks its fourth purchase in the region within half a year. In May the company acquired $135mn of upstream assets in Louisiana from Indigo Minerals, and it went on to buy fields from Blackbeard Operating in July and Tanos Energy in August.
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Diversified will pay $181mn for its share of the assets, which it estimated currently produce around 12,000 barrels of oil equivalent/day, of which 61% is gas. It expects to gain $95mn of adjusted EBITDA from the business over the next year.
The company funded the deal with a draw from its $825mn credit facility.