Diversified Energy Company (NYSE: DEC) announced on September 2, 2026, that it has entered into definitive agreements to acquire Birch Permian Holdings, Inc. and certain affiliated companies from affiliates of Elliott Investment Management L.P. The transaction is valued at approximately $1.8 billion.
The acquisition is expected to be immediately accretive to Diversified’s financial metrics. The company forecasts a roughly 35% increase in production and a 55% increase in Adjusted EBITDA upon closing. Pro forma gross volumes under Diversified’s operated control are expected to reach approximately 2.5 Bcfepd.
Birch’s assets include 480 net wells and 1,168 Bcfe of proved reserves. The company produces an average of 68 Mboepd, with a production mix of 38% oil, 32% NGLs, and 30% gas. The assets are characterized by low decline rates and integrated infrastructure, including 12 central production facilities capable of processing up to 345 Mbblpd of oil and 310 Mmcfpd of gas.
Transaction funding will be primarily sourced through an asset-backed securitization (ABS) of approximately $1.5 billion, originated and structured by Carlyle, along with other customary financing sources. The acquisition is subject to regulatory approvals and is expected to close during the fourth quarter of 2026.
In conjunction with the deal, Diversified and Carlyle have expanded their strategic partnership framework from $2 billion to a broader collaboration that may pursue up to $10 billion of potential PDP acquisition opportunities over time.
