Diversified Energy Agrees to Acquire Birch Permian Holdings for $1.8 Billion
Diversified Energy Company announced the execution of definitive agreements to acquire Birch Permian Holdings, Inc. and its affiliates for approximately $1.8 billion. The transaction is primarily funded by an approximately $1.5 billion asset-backed securitization arranged with Carlyle, supplemented by existing revolving-credit-facility liquidity, and includes a $50 million break fee. It is expected to close in the fourth quarter of 2026 subject to customary closing conditions and regulatory approvals; pro forma, Diversified expects production to increase approximately 35%, adjusted EBITDA approximately 55%, and Birch to contribute approximately $548 million in annualized adjusted EBITDA.
Direct Reuters wire content and corroborating context identify a new execution of definitive agreements for Diversified Energy to acquire Birch, with explicit transaction value, financing, break fee, expected closing period, and quantified production and EBITDA effects. This is a forward-looking corporate action that can materially change Diversified Energy’s scale, leverage, cash generation, and execution risk; it is not a price move or analyst commentary. The supplied wire timestamp is used as the best estimate of the announcement time because no more precise real-world time is provided, so timestamp confidence is high but not absolute. Surprise is moderate rather than extreme because advanced acquisition talks were reported previously, although the definitive agreement and detailed financing terms are new. Only DEC and CG are approved: DEC is the direct acquirer, while Carlyle is explicitly identified as arranger of the financing and strategic partner; the other proposed stakeholders have only indirect, conditional, or unsupported effects and are excluded.
DIVERSIFIED ANNOUNCES ACCRETIVE ACQUISITION OF BIRCH
ACQUISITION VALUED AT $1.80 BILLION, PRIMARILY FUNDED BY $1.50 BILLION ASSET-BACKED SECURITIZATION
ACQUISITION SUBJECT TO $50 MILLION BREAK FEE, EXPECTED TO CLOSE IN Q4 2026
ACQUISITION EXPECTED TO INCREASE PRODUCTION BY ~35% AND ADJUSTED EBITDA BY ~55%
ACQUISITION EXPECTED TO ADD $548 MILLION ANNUALIZED ADJUSTED EBITDA