Diversified Energy Co. plc has sold a sliver of its Appalachian Basin natural gas wells for around $230 million to a holding company to reduce debt, but it said it would continue to operate the assets.

The Alabama-based gas producer sold the wells to DP Lion Equity Holdco LLC, with Diversified retaining a 20% minority stake. Diversified received $200 million for the assets and $30 million for the remaining majority equity interest in DP Lion. Proceeds are to be used to pay down a revolving credit facility and for general uses.

“This latest transaction further demonstrates the attractiveness of Diversified’s asset base that provides reliable production and consistency of cash flows,” CEO Rusty Hutson Jr. said.

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