Diversified Gas & Oil Closes on $500M, Five-Year Credit Facility

KeyBank N.A. leads a syndicate of seven U.S. banks to support the
Company’s growth and operations

BIRMINGHAM, Ala.–(BUSINESS WIRE)–#energynews–Diversified Gas & Oil PLC (AIM: DGOC) (“Diversified” and the “Company”),
a U.S.-based acquirer and operator of oil and gas producing assets, has
entered into a $500 million, five-year, senior secured revolving credit
facility (“Facility”) with a syndicate of seven U.S. banks, led by
KeyBank N.A. (“KeyBank”). KeyBanc Capital Markets served as the Sole
Lead Arranger and Sole Bookrunner. Huntington Bank, Citizens Bank, BB&T,
IBERIABANK, CIT Bank and First Tennessee Bank committed to the Facility,
which will provide more liquidity and lower cost debt, with a new
syndicate of relationship banks.

As previously announced on February 21, 2018, the Facility provides an
initial borrowing limit of $140 million, which will increase to $200
million following the anticipated closing later this month of the
acquisition of certain oil and gas leaseholds, wells, working interests,
licenses, related equipment and other assets of CNX Gas Company Limited.
Importantly, the Facility significantly reduces the Company’s interest
rate from approximately 9.9 percent on amounts outstanding under the
Company’s previous facility agreement to approximately 4.5 percent on
those amounts under this Facility.

Diversified CEO Rusty Hutson says as the Company continues to identify
complementary opportunities to grow its portfolio of high quality
assets, reducing borrowing costs was a strategic objective, and this
closing marks another instance of Diversified delivering results on
stated objectives for the benefit of its shareholders.

“The completion of the new credit facility is an important milestone,
and we are grateful for KeyBank’s leadership and the support of an
exceptional syndicate group participating in the Facility,” said Hutson.
“While firmly committed to maintaining a strong balance sheet with low
leverage, we are excited to have this additional capital engine to fund
our growth through the responsible use of debt capital, which will
reduce our cash interest costs and favourably impact our stated dividend
policy and per share returns to our shareholders.”

Diversified’s signing of the new Facility from KeyBank follows its
February 19, 2018, $189 million equity placing, and represents another
step in the Company’s growth into a significant consolidator of mature,
conventional assets in the Appalachian Basin.

About Diversified Gas & Oil

Diversified Gas & Oil (AIM: DGOC) acquires and operates oil- and
gas-producing assets in the Appalachian Basin of the United States.
Diversified employs a disciplined investment strategy to acquire
conventional and unconventional low-risk wells, enhance operations
efficiently and maximize profitability for its shareholders. Founded in
2001, Diversified operates approximately 30,000 producing wells with the
highest standards of safety, governance and transparency. For more
information, visit us online at www.diversifiedgasandoil.com.

Contacts

Diversified Gas & Oil PLC
Nicole Wyatt, 205-588-2327
[email protected]