Diversified Energy Announces Enlarged Credit Facility Borrowing Base

Rhea-AI Summary

Diversified Energy Company PLC announced a significant increase in its borrowing base to $825 million, a 32% rise attributable to higher commodity prices and enhanced collateral from the acquisition of Tapstone Energy Holdings LLC. CEO Rusty Hutson, Jr. expressed gratitude to the Bank Group for their support, emphasizing the company's ability to generate strong free cash flow, fund ESG initiatives, and sustain dividends for investors. The next redetermination is scheduled for the second quarter of 2022.

Positive

• Borrowing base increased by $200 million (32%) to $825 million.
• Enhanced collateral from Tapstone Energy Holdings acquisition.
• Strong free cash flow projection supports business and dividends.

Negative

• None.

BIRMINGHAM, AL / ACCESSWIRE / December 8, 2021 / Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company"), is pleased to announce that the Company's bank lending group, led by KeyBank National Association (the "Bank Group"), completed its semi-annual redetermination of the Company's senior secured credit facility (the "Credit Facility"). The Bank Group approved an $825 million borrowing base, representing a $200 million or 32% increase related to higher commodity prices and the added collateral from the Company's previously announced acquisition of Tapstone Energy Holdings LLC.

Rusty Hutson, Jr., CEO of the Company commented,

"I would like to thank our bank group for their continued support of Diversified as an integral and responsible part of the energy transition solution. The more than 30% increase in the Credit Facility borrowing base affirms our banks' trust in Diversified's stewardship and confidence in our assets to generate strong free cash flow to support our business, repay our borrowings, fund our ESG initiatives for our stakeholders and sustain our dividends for investors."

The Company's next scheduled redetermination will occur during the second quarter of 2022.

For additional information, please contact:

Diversified Energy Company PLC
Jim Sheehan
+1 205 408 0909
www.dgoc.com
ir@dgoc.com

Buchanan
+44 20 7466 5000
Financial Public Relations
Ben Romney
Chris Judd
Jon Krinks
James Husband
dec@buchanan.uk.com

About Diversified Energy Company PLC

Diversified Energy Company PLC is an independent energy company engaged in the production, marketing and transportation of primarily natural gas related to its synergistic US onshore upstream and midstream assets.

SOURCE: Diversified Energy Company PLC

View source version on accesswire.com:
https://www.accesswire.com/676492/Diversified-Energy-Announces-Enlarged-Credit-Facility-Borrowing-Base

FAQ

What is the latest announcement from Diversified Energy Company (DECPF)?

Diversified Energy Company announced a 32% increase in its borrowing base to $825 million due to higher commodity prices and the acquisition of Tapstone Energy Holdings.

When is the next redetermination of Diversified Energy's credit facility?

The next redetermination of the credit facility is scheduled for the second quarter of 2022.

What factors contributed to Diversified Energy's borrowing base increase?

The increase in the borrowing base was attributed to higher commodity prices and additional collateral from the acquisition of Tapstone Energy Holdings.

How will the increased borrowing base impact Diversified Energy's investors?

The increased borrowing base enables Diversified Energy to sustain dividends and fund ESG initiatives, benefiting investors.