Diversified Energy Co. (DEC.L) agreed to acquire US-based Birch Permian Holdings from Elliott Investment Management affiliates at a valuation of $1.8 billion.
The energy company said in a Wednesday filing that the acquisition will expand its footprint in the Permian oil basin in the US. The target company's current net production stands at 68,000 barrels of oil equivalent per day.
Diversified Energy intends to primarily fund the acquisition through the issuance of an asset-backed securitization, or ABS, worth $1.5 billion through its partnership with Carlyle, and existing liquidity from a revolving credit facility.
Diversified Energy added that it agreed to expand the scale of its strategic partnership with Carlyle, which originally had a $2 billion framework. The partners are now targeting the acquisition of up to $10 billion of potential proved developed producing assets.
The Birch acquisition is expected to close in the fourth quarter of 2026.