The deal, led by Reed Smith partners Ryan Purpura and Ryan Haddad, involved the securitization of producing oil and gas assets in Pennsylvania and Ohio (the Assets) and accompanying notes offering via special purpose vehicle (SPV), and the subsequent sale of 80% of the SPV’s parent entity. Following consummation of the transactions, Diversified retains a 20% equity interest and operatorship of the Assets.
“This innovative transaction provides a path for the client to unlock additional value from its assets while enhancing the company’s liquidity,” said Purpura, who also co-leads Reed Smith’s global Energy and Natural Resources Group.
Owing to the complex nature of the deal, Purpura and Haddad assembled an experienced, multidisciplinary team of Reed Smith colleagues that included partners Lyn Reinhardt and Robert Phillpott and associates Megan Skiba, Brandon Dekema and Kyle Higgins, who worked closely with Diversified’s business team, including general counsel Ben Sullivan and associate general counsel Jamie Adkins.
For more information about the deal, please see Diversified’s Jan. 2 news release.
In March 2023, Reed Smith’s energy transactions team successfully advised Diversified in its $250 million acquisition of several high-quality accretive energy properties and related assets from Tanos Exploration, an oil and natural gas drilling company based in Tyler, Texas.
About Diversified Energy Company PLC
Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
About Reed Smith
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, we deliver smarter, more creative legal services that drive better outcomes for our clients. Our deep industry knowledge, long-standing relationships and collaborative structure make us the go-to partner for complex disputes, transactions and regulatory matters.
For more information, visit reedsmith.com.
