An Alabama-based oil and gas company completed the acquisition of EQT Corporation’s southern Appalachian producing gas and oil and midstream assets earlier this month, doubling its production.
Diversified Gas & Oil made the announcement last week that they acquired the midstream production assets (i.e. pipelines) along with other storage, processing, marketing and transportation resources in the Appalachia including spots in the southern half of West Virginia, as well as eastern Kentucky. The acquisition more than doubles the Company’s production to over 60,000 barrels of oil equivalent per day, firmly establishing Diversified as the largest conventional producer in the Appalachian region.
“Delivering on our stated objectives has been a guiding principle since our admission to AIM on the London Stock Exchange in February 2017. 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,” said Rusty Hutson, CEO of Diversified. “Completing a transaction of this size further increases Diversified’s visibility in the market as a preferred and capable purchaser of oil and gas assets.”
The Birmingham-based company also announced the existing workforce will be retained, with more than 250 employees joining Diversified.
“We now turn our attention to the optimization and integration of these assets into our expanding operations,” added Hutson. “To help accomplish this task, I am excited to welcome to Diversified the more than 250 exceptional operations personnel who have cared for these assets for years and in many cases, for decades. Their commitment to excellence is a perfect complement to our existing Company culture, and I am confident that the team’s combined efforts will yield even better results.”
Diversified closed on the assets on July 18, 2018.