Diversified Energy to Buy Birch Permian Holdings from Elliott Affiliates for USD 1.8 Billion
Diversified Energy has signed definitive agreements to acquire Birch Permian Holdings and certain affiliated companies from affiliates of Elliott Investment Management, in a deal the company valued at approximately USD 1.8 billion, according to a statement issued through GlobeNewswire.
Birch operates in the Permian Basin as an independent oil and gas producer, according to the announcement.
Funding will come primarily from an issuance of an Asset Backed Securitization of approximately USD 1.5 billion, arranged through Diversified's partnership with Carlyle's Asset-Backed Finance and Capital Markets teams, the company said.
Diversified expects the transaction to lift production by roughly 35% and Adjusted EBITDA by roughly 55%, per the release. The company put the incremental contribution at approximately USD 548 million of annualized Adjusted EBITDA from what it described as a high-margin asset base.
On a pro forma basis, gross volumes under Diversified's operated control are expected to reach approximately 2.5 Bcfepd, equivalent to about 1.6 Bcfepd net, according to the statement.
The company expects to close during the fourth quarter of 2026, subject to customary closing conditions.
Source: globenewswire.com (opens in a new tab)1 sourcePermalink