UNITED KINGDOM; UNITED STATES OF AMERICA —Diversified Energy Company PLC has executed definitive agreements to acquire Birch Permian Holdings and affiliated entities for a gross purchase price of approximately USD 1.8 billion. The transaction, sourced from affiliates of Elliott Investment Management, is structured to close during the fourth quarter of 2026, pending standard regulatory and customary conditions. Financing for the acquisition will be primarily facilitated through a USD 1.5 billion asset-backed securitization arranged with Carlyle, supplemented by existing revolving credit facilities.
This consolidation fundamentally alters the operational scale of the acquiring entity within the United States energy sector. By integrating Birch Permian Holdings, the combined enterprise anticipates a 35 percent expansion in overall production volumes and a 55 percent increase in adjusted earnings before interest, taxes, depreciation, and amortization. The acquired portfolio consists of roughly 480 net wells characterized by low decline rates, which align with a strategy focused on mature, long-life producing assets rather than high-risk exploration.
The regional impact centers heavily on the Permian Basin, where the merged entity will control an estimated 2.5 billion cubic feet of oil equivalent per day in gross operated volumes. This density provides enhanced leverage over midstream infrastructure, water management, and localized supply chains. Consequently, regional midstream operators, local labor markets, and commodity marketers will experience shifted negotiating dynamics as the newly scaled entity optimizes its vertical integration to capture margins across the hydrocarbon value chain.
For investors and industry strategists, the transaction validates a continuing market preference for low-decline, cash-generative proved developed producing assets. The utilization of asset-backed securitization highlights a sophisticated capital markets approach to funding large-scale upstream consolidation without excessive equity dilution. Furthermore, the inclusion of permitted enhanced oil recovery locations introduces a tangible mechanism for extending asset lifespans and maximizing ultimate recovery, offering a secondary growth lever beyond baseline production metrics.
Diversified Energy Company PLC is a dual-listed independent energy producer headquartered in the United Kingdom with significant operational footprints across multiple United States basins, specializing in the acquisition and optimization of mature oil and natural gas assets. Birch Permian Holdings is an independent upstream operator backed by Elliott Investment Management, recognized for its concentrated, low-decline asset base and existing enhanced recovery capabilities in the Permian region.
