Diversified Energy Acquires Birch Permian in $1.8 Billion Deal
Diversified Energy has agreed to acquire Birch Permian for approximately $1.8 billion, enhancing its U.S. onshore portfolio with mature oil and gas assets located primarily in the Permian Basin. The deal is expected to close by late 2026 after regulatory approvals are secured. The acquisition will be funded through a combination of an asset-backed securitization worth $1.5 billion, led by Carlyle's teams, along with Diversified’s existing credit facilities and other financing sources. Birch currently produces around 68,000 barrels of oil equivalent per day (boepd) from approximately 480 net wells across its core Permian Basin leasehold. Diversified anticipates a significant boost in production volume—up by about 35%—and adjusted EBITDA rising by around 55%. The company also plans to expand its partnership with Carlyle for potential future acquisitions of up to $10 billion worth of proved developed producing assets.
Tickers: $DEI
Topics: Acquisition Energy Oil & Gas Permian Basin