Diversified Energy Acquires Birch Permian, Expands $10B Carlyle Partnership

Key Facts

1Diversified Energy announced the acquisition of Birch Permian Holdings from affiliates of Elliott Investment Management.

2The acquisition is expected to increase production by approximately 35% and Adjusted EBITDA by approximately 55%.

3Carlyle and Diversified expanded their strategic partnership to pursue up to $10 billion in future opportunities.

In a move reflecting the accelerating consolidation within the U.S. energy sector, Diversified Energy announced the execution of definitive agreements to acquire Birch Permian Holdings from affiliates of Elliott Investment Management. According to reports, the acquisition aims to establish a scaled, vertically integrated position in the Permian Basin. The transaction is projected to increase the company's production by approximately 35% and boost its Adjusted EBITDA by an estimated 55% through the integration of low-decline assets.

Simultaneously, Diversified and Carlyle have expanded their strategic partnership framework to pursue up to $10 billion in future acquisition opportunities. The current acquisition, valued at approximately $1.8 billion, will be primarily funded through a $1.5 billion Asset-Backed Securitization (ABS) in partnership with Carlyle’s finance teams, alongside existing revolving credit facilities. This expansion signals a significant commitment to long-term growth by combining Carlyle's capital markets expertise with Diversified's operational scale.

Looking ahead, the company is scheduled to host a conference call on September 3, 2026, to discuss the strategic and financial implications of the Birch acquisition. Per market data, specific price levels for DEC shares were unavailable at the close of September 2, 2026. Investors will be watching for the successful execution of the $10 billion partnership framework and the impact of the new production volumes on the company's upcoming quarterly performance.