The Diversified Energy Birch acquisition will expand the company’s Permian Basin footprint through a $1.8 billion purchase of Birch Permian Holdings and affiliated businesses from Elliott Investment Management funds.
Diversified Energy (NYSE: DEC) said in its official announcement that the transaction would add approximately 68,000 barrels of oil equivalent per day of net production. The assets include about 46,000 net mineral acres and 480 net wells, with Diversified operating roughly 96% of the portfolio.
The company estimates the acquisition will increase production by approximately 35% and adjusted EBITDA by about 55%. Birch’s current production mix is roughly 38% oil, 32% natural gas liquids and 30% natural gas, giving Diversified greater exposure to liquids alongside its existing gas-focused operations.
Diversified Energy Birch Acquisition Expands Permian Scale
Diversified plans to fund most of the purchase with an approximately $1.5 billion asset-backed securitization arranged through its partnership with Carlyle. Additional financing is expected to come from customary sources, including available liquidity under the company’s revolving credit facility.
The companies also expanded their strategic partnership from an initial $2 billion framework to as much as $10 billion of potential producing-asset acquisitions over time. Those future transactions would remain subject to mutual agreement and separate approvals and should not be treated as committed spending.
The Birch transaction is expected to close during the fourth quarter of 2026, subject to regulatory approval and customary conditions. Diversified’s production and EBITDA estimates are company projections, and some operating and reserve information supplied by Birch or the sellers has not been independently verified in all respects.
