Diversified Energy to acquire East Texas natural gas assets for $245 million

(WO) - Diversified Energy has agreed to acquire natural gas properties and related facilities in East Texas from Sheridan Production for $245 million in cash, expanding its operated footprint in the region. 

The transaction, expected to close in the second quarter of 2026, will be funded through existing liquidity under the company’s senior secured bank facility, subject to customary closing conditions.

The assets are expected to contribute approximately 62 MMcfed (about 10 Mboed) of net production in 2026, with an estimated annual decline rate of roughly 6%. The production mix is approximately 72% natural gas. Diversified said the properties include approximately 397 Bcfe of proved developed producing (PDP) reserves, with an estimated PV-10 value of $310 million.

The acquisition is contiguous with Diversified’s existing East Texas position and includes roughly 75,000 acres of leasehold. The company said the proximity to its current operations is expected to generate operational efficiencies and cost synergies.

Estimated next-twelve-month EBITDA from the assets is approximately $52 million, based on strip pricing assumptions as of early February 2026.

Diversified has built its strategy around acquiring mature, low-decline producing assets and applying operational optimization to enhance cash flow. The East Texas deal adds scale to its regional position while maintaining its overall corporate decline profile, the company said.