Diversified Gas & Oil completes $575 million acquisition
BIRMINGHAM, Ala. (AP) — An Alabama-based company has completed a $575 million acquisition in producing gas and oil.
Diversified Gas & Oil of Birmingham completed the acquisition this week of EQT Corporation’s southern Appalachian, Al.com reported . It doubles the company’s production to more than 60,000 barrels of oil per day.
Diversified assumes operation of select EQT Corporation gas and oil assets across Kentucky, Virginia and West Virginia. With more than 11,000 wells, there will be 6,400 miles of gathering pipe and 59 compressor stations.
Company officials say more than 250 employees will be joining Diversified while existing workforce will be retained.
Diversified CEO Rusty Hutson says the acquisition delivers on the company’s stated objectives.
“The addition of these high-quality assets to our growing portfolio and their accretive impact on earnings are tangible results that benefit our shareholders, and represents a significant milestone in the evolution of our clearly stated strategy,” Hutson said. “We now turn our attention to the optimization and integration of these assets into our expanding operations.”
The purchase was funded through an extension to the company’s existing credit facility, which increased to $1 billion from $500 million. There was also a successful capital raise of $250 million.