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Diversified Energy Co PLC on Thursday said it has raised $163.0 million in gross proceeds via a share placing.
The Alabama, US-based gas and oil production company said the placing of 128.4 million new shares at 105 pence per share represents 15% of the company’s issued share capital.
The company noted that the fundraising price represents a discount of 5.2% from the closing mid-market price on February 8.
Diversified said it received strong support from a number of its largest shareholders prior to the fundraising.
The company said the funding would be used to partially fund its $250 million acquisition of Tanos Energy Holdings II LLC, which is expected to close on March 1.
The remainder of the acquisition consideration will be paid using undrawn funds from Diversified’s revolving credit facility.
Diversified added that if the acquisition is not completed, it will decide the most appropriate use of the net proceeds from the fundraising, including investing in other acquisition opportunities.
Chief Executive Officer Rusty Hutson said: ‘I am pleased with the results of today’s fundraise that positions the company to add high-quality, accretive assets to our portfolio. The assets we are acquiring are accretive to earnings and cash flow and strengthen our balance sheet as we start the year.’
Diversified Energy shares were down 3.3% trading at 107.17 pence per share on Thursday morning in London.
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