Diversified Energy acquisition of Birch Permian

Diversified Energy began preliminary discussions regarding a potential acquisition of Birch Resources, a company backed by Elliott Investment Management that operates in the Permian Basin. Early reports suggested a potential all-cash transaction could value Birch at more than $1.7 billion.

By September, Diversified Energy 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, expected to close in the fourth quarter of 2026, is the company’s largest acquisition in 25 years. The acquisition includes approximately 480 net wells and is expected to increase Diversified’s production volume by roughly 35%.

Financing for the transaction is being led by an approximately $1.5 billion asset-backed securitization arranged with Carlyle. Furthermore, Diversified and Carlyle have expanded their strategic partnership to pursue up to $10 billion in future acquisition opportunities.