Diversified Energy Expands Portfolio with Maverick Acquisition
Diversified Energy Expands Portfolio with Maverick Acquisition
In a significant move towards strengthening its operations, Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) has successfully completed the acquisition of Maverick Natural Resources. This strategic acquisition reaffirms Diversified's position as a prominent independent energy company dedicated to natural gas and liquids production, transportation, marketing, and well retirement. The announcement comes in line with earlier communications detailing the transaction's progress.
Share Issuance Details
On the heels of shareholder approval received during the general meeting, Diversified has issued a total of 21,194,213 new ordinary shares. These shares, referred to as 'Consideration Shares', will be listed on the New York Stock Exchange. The issuance aligns the new shares with those already in circulation, ensuring parity among all shareholders. Each share has a nominal value of £0.20, reflecting the company’s commitment to maintaining financial integrity and stability.
Regulatory Admissions
In a bid to facilitate these transactions, applications have been submitted to both the Financial Conduct Authority (FCA) and the London Stock Exchange for the official listing of the Consideration Shares. Anticipation builds around the expected admission at 8:00 a.m. London time, marking a new chapter for Diversified Energy as it integrates Maverick's assets into its operations.
Management Changes Post-Acquisition
The acquisition marks a new era for Diversified Energy, with significant changes in governance set to take place. Rick Gideon, who served as the CEO of Maverick Natural Resources, will transition to the role of Chief Operating Officer (COO) of Diversified Energy as of March 18, 2025. This shift underscores the company’s intention to leverage Maverick's expertise to enhance operational efficiency and strategic growth.
Maintaining Shareholder Transparency
As part of its commitment to transparency, Diversified has disclosed the total number of ordinary shares outstanding as of March 14, 2025, reaching 80,990,155 shares. Each ordinary share will carry one vote, ensuring that all shareholders remain informed about their voting rights and interests in the company's capital structure.
Strategic Advisor Partnerships
Diversified Energy's acquisition strategy has been bolstered through partnerships with several reputable advisory firms. Citi has played a crucial role as the financial and transaction advisor, while KeyBanc Capital Markets, Truist, and Stifel have provided additional advisory support. Legal guidance has been offered by Gibson, Dunn & Crutcher LLP and Latham & Watkins (London) LLP for Diversified, while Maverick benefited from Jefferies Securities and Kirkland & Ellis LLP’s expertise, ensuring a comprehensive approach to legal and financial matters during the acquisition.
About Diversified Energy
Diversified Energy Company stands out as a trailblazer in the energy sector, focusing on sustainable practices in natural gas and liquids management. The company adopts a differentiated strategy, acquiring long-lasting assets and investing in their optimization until they are responsibly decommissioned. With a solid reputation for sustainability, Diversified adopts a stewardship approach that positions it as a suitable choice for energy production and shareholder value generation in today's dynamic market environment.
Frequently Asked Questions
What motivated Diversified Energy to acquire Maverick Natural Resources?
The acquisition aligns with Diversified's strategy to strengthen its portfolio and expand its capabilities in energy production and sustainability.
How many shares were issued during this acquisition?
A total of 21,194,213 new ordinary shares were issued as part of the acquisition.
Who becomes COO after the acquisition?
Rick Gideon, the former CEO of Maverick Natural Resources, will take on the role of Chief Operating Officer for Diversified Energy.
What is the nominal value of the new shares issued?
Each newly issued share has a nominal value of £0.20.
Which firms provided advisory support for this acquisition?
Citi, KeyBanc Capital Markets, Truist, Stifel, and several legal firms advised Diversified throughout the acquisition process.
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