Diversified Energy Acquires Birch Resources for $1.8 Billion, Expanding Permian Basin Operations
Diversified Energy Company PLC (NYSE: DEC) has agreed to acquire Birch Resources in a $1.8 billion deal expected to close by the end of Q4 2026. The acquisition will significantly expand Diversified's presence in the Permian Basin, adding approximately 480 net wells and boosting production from around 9,000 barrels of oil equivalent per day (BOE/d) to about 77,000 BOE/d. The transaction includes roughly 1.2 trillion cubic feet equivalent of reserves and is expected to increase Permian adjusted EBITDA from $64 million to $612 million annually. The assets are largely liquids-weighted (about 70%) with associated infrastructure such as production facilities, pipelines, and water disposal systems. Diversified plans to finance the acquisition primarily through asset-backed securities and anticipates operational synergies that could lead to nearly $2 billion in deleveraging over four years. The deal is expected to increase total production by 35%, adjusted EBITDA by 55%, and more than double free cash flow.
Topics: acquisitions energy Permian Basin