William Blair Highlights Diversified Energy’s (DEC) Unique Operating Strategy

Diversified Energy Company (NASDAQ:DEC) ranks among the best energy stocks with huge upside potential. On November 18, William Blair initiated coverage on Diversified Energy Company (NASDAQ:DEC), rating it Outperform. The firm underscored Diversified’s unique approach to drilling and completion, noting that the company purchases, operates, and improves existing long-life, low-decline oil and gas assets rather than drilling new ones.

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William Blair noted that Diversified’s approach of maximizing the performance of older wells proved less heavy on capital compared to conventional upstream drilling and completion models. In addition, the firm had voiced anticipation that the company would announce another significant accretive acquisition.

In that regard, on November 28, Diversified Energy Company (NASDAQ:DEC) formally finalized its acquisition of Canvas Energy, acquiring a substantial collection of producing assets and Oklahoma land that instantly expands its reach. The transaction, which is funded by a new $400 million asset-backed securitization (ABS), represents a deliberate move that improves long-term optionality and productivity.

The acquired properties increase Diversified’s standalone output by around 13%, adding about 147 million cubic feet equivalent of natural gas per day to current net production.

Diversified Energy Company (NASDAQ:DEC) is an independent owner and operator of producing natural gas & oil wells primarily in the Appalachian Basin of the US.

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Disclosure: None. This article is originally published at Insider Monkey.