Diversified Energy is making its largest acquisition to date, purchasing Birch Permian for $1.8 billion, significantly expanding its Permian footprint and production. This deal is expected to be immediately accretive to key financial metrics and solidifies Diversified's strategy of consolidating proved developed producing (PDP) assets, backed by an expanded $10 billion partnership with Carlyle.
Diversified Energy is acquiring Birch Permian Holdings for $1.8 billion, marking its largest acquisition ever. This move significantly expands DEC's presence in the Permian Basin, adding substantial proved developed producing (PDP) assets and increasing its production volume by an estimated 35% and Adjusted EBITDA by 55%. The acquisition is primarily funded through a $1.5 billion Asset Backed Securitization with Carlyle, and notably, the strategic partnership with Carlyle has been expanded to pursue up to $10 billion in future PDP acquisition opportunities. This is a major positive catalyst for Diversified Energy, positioning it as a premier Permian operator and offering long-term growth through consolidation, while also benefiting Carlyle through increased collaboration and investment opportunities.