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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Diversified Energy

March 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DEC
  • Price:
  • 108p
Diversified has announced the acquisition of a package of assets from Tanos Energy, comprising wells and facilities in Louisiana and Texas. The consideration is US$250m and is being funded by new debt and a placing that raised US$163m at 105p. Following the acquisition and fundraising it estimates pro-forma year-end 2022 leverage of 2.1x EBITDA / net debt.   Diversified is buying 150 operated production wells currently yielding around 17,000 boepd, of which around 76% is gas. The assets offer the same long-life, gas-weighted production potential and low natural decline rates as its broader portfolio and are located within its core Central Region area, providing an opportunity for considerable synergies.  The package ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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