Diversified Energy to Acquire Permian Producer Birch in $1.8 Billion Deal
Diversified Energy has agreed to acquire Permian Basin producer Birch Permian Holdings and affiliated companies for approximately $1.8 billion, marking the largest acquisition in Diversified's history. The deal is expected to increase its production by about 35% and adjusted EBITDA by around 55%. Birch contributes an estimated $548 million annually in adjusted EBITDA and has significant infrastructure assets including gathering pipelines and processing facilities. The transaction aligns with Diversified's strategy of acquiring mature, producing oil and gas properties. The company plans to finance most of the purchase through asset-backed securitization financing structured via Carlyle, expanding their potential PDP acquisition opportunities up to $10 billion over time. Birch’s production is composed of 38% oil, 32% natural gas liquids, and 30% natural gas. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approvals. It includes a $50 million break fee.
Tickers: $DEI
Topics: acquisitions oil and gas Permian Basin