Diversified Energy confirms Birch talks after 35 deals

• Diversified Energy confirmed preliminary discussions about a possible acquisition of Birch Resources, but no agreement has been reached.
• Diversified Energy shares were down 1.32% at 1,048p in London after the announcement, while the NYSE stock last closed at $14.17.
• The company said acquisitions remain central to its strategy after completing 35 deals worth more than $7 billion since its 2017 IPO.

Diversified Energy (NYSE:DEC) confirmed preliminary discussions about acquiring Birch Resources, but said talks remain early and no transaction has been agreed.

The announcement followed media speculation about a Birch transaction, although Diversified said there is no certainty a deal will proceed or what terms may be agreed.

Diversified said acquisitions are a core part of its strategy and that it regularly holds preliminary discussions with potential counterparties.

The company has completed 35 acquisitions totaling more than $7 billion since its 2017 IPO, while its latest Birch disclosure was also classified as inside information under UK market-abuse rules.

Following the announcement the Diversified Energy share price was down 1.32% at 1,048p in London, while its NYSE-listed shares had last closed at $14.17 before the release.

Diversified has recently expanded through the $533 million Canvas acquisition, a $236 million Sheridan purchase and the $1.175 billion Camino transaction structured with Carlyle.

The company has also sold Barnett assets for $116 million net and Arkansas assets for $15 million net, while outlining plans to develop more than 450 identified Oklahoma drilling locations.