Closing of $1 billion Credit Facility

RNS Number : 1321V
Diversified Gas & Oil PLC
19 July 2018
 

19 July 2018

Diversified Gas & Oil PLC

("DGO" or the "Company")

 

Closing of an Enlarged $1 billion Credit Facility in conjunction with closing of
acquisitions of Appalachian oil and gas and midstream assets from EQT Corporation

 

Diversified Gas & Oil PLC (AIM: DGOC) the U.S.-based acquirer and operator of gas and oil producing assets, today announced the closing of an enlarged $1 billion, five-year senior secured revolving credit facility (the "Facility") with KeyBanc Capital Markets ("KeyBanc"), The Huntington National Bank ("Huntington"), and Citizens Bank, N.A. ("Citizens") and Branch Banking and Trust Company ("BB&T") who collectively acted as joint lead arrangers.  KeyBanc provided Diversified with a fully underwritten Borrowing Base in support of the Company's $575 million acquisition of EQT Corporation's southern Appalachian gas and oil and midstream assets (the "EQT Asset Acquisition"), and later partnered with Huntington and Citizens to co-underwrite the borrowing base prior to the broader re-syndication. Upon a successful re-syndication, the Facility includes five new lending institutions for a total of 11 participating banks, which include ING Capital LLC, IberiaBank, CIBC, Credit Agricole, US Bank, CIT Bank, and First Tennessee.

 

The Facility's current borrowing base of $600 million is three times larger than the prior facilities $200 million base, and highlights the strength of the Company's growing, high-quality base of proved reserves. 

 

The enlarged Facility follows the highly successful completion of DGO's $250 million equity raise and its EQT Asset Acquisition, which increases the Company's proved-developed-producing reserves by more than 140% to approximately 2.4 trillion cubic feet of gas equivalent.  The acquisition also provides the Company with a midstream asset that includes 6,400 miles of pipeline and 59 compressor stations that significantly enhance the economics of the Company's production in that region of the Basin.

 

CEO, Rusty Hutson, Jr. commented:

 

"Building on the strong relationship we have developed with KeyBanc, Huntington and Citizens, we are pleased to have closed on the EQT Asset Acquisition that underpinned our need to triple the size of our borrowing base in less than four months from first establishing the facility in March of this year. The completion of this enlarged facility strengthens our balance sheet, affords us more than $200 million of liquidity and maintains our low financing costs. I'd like to thank each of the banks for their support of our strategy to acquire long-life, low decline producing assets."

 

About Diversified Gas & Oil

Diversified Gas & Oil (AIM: DGOC) acquires and operates oil- and gas-producing assets in the Appalachian Basin of the United States. Diversified employs a disciplined investment strategy to acquire conventional and unconventional low-risk wells, enhance operations efficiently and maximize profitability for its shareholders. Founded in 2001, Diversified operates a growing portfolio of producing wells with the highest standards of safety, governance and transparency. For more information, visit us online at www.dgoc.com

 

Diversified Gas & Oil PLC

Rusty Hutson Jr., Chief Executive Officer

Brad Gray, Chief Operating Officer and Finance Director

Eric Williams, Chief Financial Officer

www.dgoc.com

 

+ 1 (205) 408 0909

 

Smith & Williamson Corporate Finance Limited

(Nominated Adviser)

Russell Cook

Katy Birkin

Ben Jeynes

 

+44 (0)20 7131 4000

 

Mirabaud Securities Limited

(Joint Broker)

Peter Krens

Edward Haig-Thomas

 

+44 (0)20 3167 7221

 

Stifel Nicolaus Europe Limited

(Joint Broker)

Callum Stewart

Nicholas Rhodes

Ashton Clanfield

 

+44 (0)20 7710 7600

Stifel Nicolaus & Company, Incorporated

(US Financial Adviser)

Sameer Parasnis

Chris Gibson

 

+1 713 237 4516

Buchanan

(Financial Public Relations)

Ben Romney

Chris Judd

Henry Wilson

dgo@buchanan.uk.com

 

+44 (0)20 7466 5000

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
NRAGMGMNVLVGRZG
UK 100

Latest directors dealings