Diversified Energy buys Permian assets for $1.8 billion

• Diversified Energy agreed to acquire Birch Permian Holdings for approximately $1.8 billion.
• The deal adds about 68 Mboepd of production and 1,168 Bcfe of proved reserves.
• Diversified expects the acquisition to increase production by about 35% and Adjusted EBITDA by about 55%.

Diversified Energy (NYSE:DEC) agreed to acquire Birch Permian Holdings for approximately $1.8 billion, expanding its operated position in the Permian Basin.

The acquired portfolio includes about 480 net wells, approximately 68 Mboepd of current net production, and 1,168 Bcfe of proved reserves with an estimated PV-10 value of about $2.0 billion.

Diversified expects the transaction to add approximately $548 million in annualized adjusted EBITDA at about 80% EBITDA margins, increase production by roughly 35%, and raise adjusted EBITDA by about 55%, while funding will include an approximately $1.5 billion asset-backed securitization arranged with Carlyle and revolving credit facility liquidity.

The transaction is targeted to close in the fourth quarter of 2026, subject to customary conditions, with a $50 million break fee.

Diversified Energy operates natural gas and oil assets, focusing on production, asset management, and acquisitions across energy markets.

Following the acquisition, Diversified expects gross operated volumes of approximately 2.5 Bcfepd and net volumes of about 1.6 Bcfepd, while Diversified and Carlyle expanded their partnership to pursue up to $10 billion of future proved developed producing asset opportunities.