Diversified Energy Company (NYSE: DEC) entered into definitive agreements on September 2, 2026, to acquire Birch Permian Holdings, Inc. and affiliated entities. The transaction involves a merger between Diversified Energy and Birch Permian Holdings, Inc., as well as the purchase of non-voting incentive interests in Birch Permian, LLC and equity interests in Birch II, LLC.
Under the terms of the agreements, Diversified Energy will acquire approximately 46,000 net mineral acres in the Midland Basin. The assets include 500 gross operated wells (480 net total) and integrated midstream and water infrastructure.
The aggregate purchase price for the transactions is approximately $1.8 billion, inclusive of repayment of indebtedness. The company expects to fund the deal with an asset-backed securitization of approximately $1.5 billion and customary financing sources, including its revolving credit facility.
The closing of the transactions is expected to occur simultaneously in the fourth quarter of 2026, subject to the satisfaction of customary closing conditions. The agreements contain provisions for a $50 million deposit and specific termination fees and rights for the parties involved.
