Core Appalachia

About Core Appalachia

Core Appalachia operated as a privately held natural gas producer and processor, with a strategic focus on the Devonian region of the United States. The company was established in 2016 following the acquisition of the Southern Appalachian Division assets from Chesapeake Energy Corporation, a move made in partnership with private equity firm Trive Capital. This foundational acquisition provided Core Appalachia with approximately 1.3 million net acres in Eastern Kentucky and West Virginia, including substantial conventional gas production and development acreage. The President and CEO of Core Appalachia was Jim Rode.

The company's business model centered on the acquisition and enhancement of producing oil and natural gas properties. Its operations were vertically integrated, encompassing not only exploration and production but also a significant midstream component. This included a vast network of over 4,000 miles of gathering pipelines and related midstream facilities, which supported the transportation and processing of its produced gas. The business generated revenue from its upstream operations and through its midstream assets by moving third-party volumes. Core Appalachia's assets included approximately 5,000 wells across Kentucky, West Virginia, and Virginia. The produced gas was noted for its high BTU content, presenting opportunities for margin improvement through the extraction of natural gas liquids.

In a significant milestone, Core Appalachia was acquired by Diversified Gas & Oil (now Diversified Energy Company) in October 2018 for a total consideration of approximately $183 million. The deal consisted of $130 million in cash and the issuance of 35 million new ordinary shares in Diversified. This acquisition was a strategic move for Diversified, as Core's assets were highly complementary to assets Diversified had recently acquired from EQT, allowing for operational synergies and an expanded midstream footprint in Southern Appalachia. The transaction marked the conclusion of an 18-month ownership period by Trive Capital, during which Core optimized its network and operations.