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Munich Re Announces $200 Million Oil & Gas Securitization Financing

HOUSTON--(BUSINESS WIRE)--

Munich Re Reserve Risk Financing, Inc. ("MRRF"), a wholly-owned subsidiary of Munich Re, today announced the closing of a $200 million securitized financing with Diversified Gas & Oil plc (AIM: DGOC, “the Company”), a U.S.-based owner and operator of natural gas, natural gas liquids, oil wells, and midstream assets. In addition to funding 100% of this transaction, Munich Re also provided the necessary commodity price hedges.

The transaction is DGOC’s inaugural securitized financing and the notes have been assigned a BBB- investment grade rating by both Fitch and Morningstar.

George Carrick, President of MRRF, said, “A financing of this type requires a combination of operator capability and quality long-lived reserves. DGOC, an efficient consolidator and operator of long-lived producing natural gas reserves, was uniquely positioned to avail itself of this structure. We are pleased to partner with such an innovative company and provide a creative capital and hedge solution. We look forward to supporting DGOC’s continued growth.”

Rusty Hutson, Jr., CEO of DGOC, said, “Our new securitized financing structure provides DGOC with access to a high-quality capital base and allows the company to diversify and enhance the duration of our debt capital structure while simultaneously enhancing liquidity. MRRF’s flexibility, unique approach to upstream financing, and combination of funding and hedging capabilities all proved instrumental in successfully executing this transaction.”

About Munich Re Reserve Risk Financing, Inc.

MRRF provides alternative debt financing to the upstream oil and gas sector in North America and is a wholly-owned subsidiary of Munich Re, a AA-rated global insurance company operating across all risk lines and providing billions of dollars in underwriting commitments for energy-related risks and direct investments in energy infrastructure.

About Munich Re

Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the capital investment company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to the 2017 Atlantic hurricane season and the California wildfires in 2018. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.

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