Diversified Sells Major Stake in Select Appalachian Wells for $200M
Diversified Energy Company, with major assets in the Appalachian region (including the Marcellus/Utica), announced yesterday the company had sold a majority stake in an unspecified number of Appalachian conventional oil and gas wells to an investment company called DP Lion Equity Holdco, for $200 million. We could not find who owns DP Lion. The company was registered as an LLC in the State of Delaware on Oct. 19, 2023. That’s about all we know about the buyer. The deal includes Diversified retaining a 20% ownership in the wells (80% goes to DP Lion). Diversified will also continue to operate the wells.
1/4/24 UPDATE: A sharp MDN reader sent us a link to a previous Diversified SEC filing that shows DP Lion Equity Holdco, LLC, is, in fact, a subsidiary of Diversified. So Diversified raised new money by selling some of its assets to itself! Or, more likely, to a slightly different set of investors, but the assets are still controlled (essentially owned) by Diversified.
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