MORGANTOWN – Diversified Energy announced Monday that it has entered into a definitive agreement to acquire Maverick Natural Resources, a portfolio company of EIG Partners, for total consideration of approximately $1.275 billion.
Alabama-based Diversified operates about 67,000 wells across the Appalachian basin: conventional and unconventional natural gas, natural gas liquids, and oil producing wells. It’s the single-largest well operator in West Virginia, with more than 23,000 conventional wells across the state, including Monongalia, Preston and Marion counties. Diversified also operates 17,000 miles of natural gas gathering pipelines and a network of compression stations and processing facilities.
Maverick is a Houston-based oil and natural gas company that operates primarily in Texas and Oklahoma. EIG provides institutional capital to the global energy industry.
Diversified said the acquisition of Maverick “adds immediate scale, increases liquids production, and creates a combined company with long-term free cash flow generation, superior unit cash margins, and a compelling sustainability profile.”
The combined company will have an enterprise value of approximately $3.8 billion and operate across five distinct operating regions.
Diversified told The Dominion Post on Monday that the acquisition will have no impact on its West Virginia operations.
“This acquisition expands our unique and highly focused energy production company with a complementary portfolio of attractive, high-quality assets,” said CEO Rusty Hutson Jr. “We have a proven track record of unlocking value from acquisitions while maintaining our commitment to sustainability leadership, and this acquisition provides us with great assets and employees that complement this strategy. The acquired producing assets have demonstrated leading well performance and are a natural fit with our operating advantage and existing acreage. Notably, the combined footprint in Oklahoma and the Western Anadarko Basin creates one of the largest in terms of production and acreage, which includes the emerging Cherokee formation.”
“Today marks an important milestone for all of us at Maverick Natural Resources,” said Rick Gideon, CEO of Maverick Natural Resources. “We have great respect for the innovative approach and stewardship demonstrated by the team at Diversified and are pleased to enter into this partnership. Maverick has built a strong foundation of execution and efficiency across our portfolio, and we look forward to combining our complementary portfolio of assets with Diversified. I would also like to express my gratitude to the team at Maverick for their hard work and dedication in supporting our strategic efforts and contributing to this achievement.”
