Diversified Energy buys energy producer Maverick for $1.3 billion

Diversified Energy, a U.S. company, announced on Monday that it would buy Maverick Natural Resources, a private equity firm, for $1.28 Billion, including debt. The purchase will allow the company to expand its operations in the oil-and-gas-rich Permian Basin.

Diversified Energy - which produces natural gas and liquids - said that it would assume about $700 millions of Maverick Natural Resources debt. This will give the combined company an estimated value of $3.8 billion including debt.

The statement stated that EIG Global Energy Partners (the current owner of Maverick) will own approximately 20% of the new company.

Maverick’s assets in the Permian Basin are oil fields located in West Texas and New Mexico.

In August, it was reported that EIG had been exploring the possibility of selling Maverick. This could put its value at around $3 billion including debt.

The statement stated that Diversified Energy CEO Rusty Hutson would remain the company's top executive, and Chair David Johnson would also hold the same position within the new company. Reporting by Gnaneshwarrajan and Gursimrankaur in Bengalur; Editing by Richard Chang and Diane Craft, and Savio d'Souza

(source: Reuters)