Diversified Energy to acquire Birch Permian for $1.8 billion

Diversified Energy Company has entered into definitive agreements to acquire Birch Permian Holdings, Inc. from affiliates of Elliott Investment Management L.P. for approximately $1.8 billion. The deal, which is expected to close in the fourth quarter of 2026, represents the company’s largest acquisition in 25 years.

The acquisition aims to significantly expand Diversified’s footprint in the Permian Basin. The Birch portfolio includes approximately 480 net wells, 68 Mboepd of current net production, and 1,168 Bcfe of proved reserves. Following the transaction, Diversified expects its production volume to increase by roughly 35% and its Adjusted EBITDA to rise by approximately 55%.

Financing for the deal will be led by an approximately $1.5 billion asset-backed securitization arranged with Carlyle, supplemented by revolving credit facility liquidity. Additionally, Diversified and Carlyle have expanded their strategic partnership to pursue up to $10 billion in future acquisition opportunities.