Natural gas and oil well operator Diversified Gas & Oil (DGO) has completed the previously announced acquisition of natural gas gathering systems in Pennsylvania and West Virginia in the US.
The completion comes after the company’s announcement last month with regard to the signing of binding agreements to acquire two separate packages of the two gas gathering systems from Dominion Gathering and Processing, and Equitrans.
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According to the company, the assets were acquired in a $7.7m deal and comprised approximately 1,700 miles of low-pressure wet and dry gas-gathering pipelines.
Additionally, DGO acquired compressors, measuring stations and associated infrastructure.
They currently deliver approximately 109,000MMBtu of natural gas a day, nearly 60% of which comes from DGO production operations, with third-parties producing the remaining 40% volumes.
Diversified Gas & Oil CEO Rusty Hutson said: “We are pleased to close on these transactions and are eager to move forward with an expeditious integration of these assets into our midstream portfolio.
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By GlobalData“The ability to control the flow of our gas while simultaneously increasing our market optionality and net cash margins represents another value enhancing transaction for the company.”
Including the company’s existing southern midstream system, DGO currently owns and operates around 12,000 miles of natural gas gathering and transporting pipelines across the Appalachian Basin.
In April, DGO closed the acquisition of certain gas producing assets in Pennsylvania and West Virginia in a $400m transaction. The agreement related to this transaction was initially signed in March.
DGO is the owner and operator of natural gas, natural gas liquids, and oil wells, as well as midstream assets.
