The Core acquisition, which includes both upstream and midstream assets in southwestern Appalachia Basin, also interlocks with DGO’s recent purchase from EQT. (Source: Hart Energy)
Diversified Gas & Oil Plc (DGO) said Oct. 11 it continued its “contrarian” strategy in the Appalachian Basin with the acquisition of privately held Core Appalachia Holding Co. LLC in a cash-and-stock transaction worth about $183 million.
The acquisition, which includes both upstream and midstream assets in southwestern Appalachia Basin, also interlocks with DGO’s recent $575 million purchase from EQT Corp. (NYSE: EQT). DGO expects significant, near-term synergies, as a result, said the company’s CEO, Rusty Hutson.
“Core’s assets are highly contiguous to the assets we acquired from EQT earlier this year and materially expand our midstream footprint in Southern Appalachia,” Hutson said in a statement. “We expect to deliver both immediate and near-term synergies by combining these assets, resulting in higher revenues and lower operating expenses, which will support our exceptional EBITDA margins across the portfolio and drive dividend payouts higher.”