Diversified Energy broadens strategy with Anadarko drilling and Permian expansion

Diversified Energy Company

For most of its 25-year history, Diversified has focused on buying mature natural gas wells and extending their productive lives. The company targets low-cost, long-life assets and manages them for continued production before eventual retirement. Acquisitions have therefore been central to its growth strategy.

Since its 2017 initial public offering, Diversified has completed 35 acquisitions. That approach has built a large portfolio of producing wells while allowing the company to add reserves and production without depending heavily on new drilling.

The strategy is now changing.

Diversified plans to operate its first drilling rig in the Anadarko Basin from September 2026. This marks a shift from primarily acquiring existing production to developing part of its own drilling inventory.

The move follows a significant expansion in Oklahoma. In late 2025, Diversified acquired Canvas Energy for $550 million. The transaction helped build a combined position of about 1.6 million net acres in central Oklahoma.

Diversified then expanded further in May 2026 through the acquisition of Camino Natural Resources with Carlyle. The $1.175 billion transaction added 101,000 net acres across the SCOOP, STACK and Merge areas of the Anadarko Basin.

Camino also contributed about 300 MMCFE per day of production and more than 100 drill-ready locations. Following the acquisition, Diversified’s total Oklahoma inventory increased to more than 450 locations.

Drilling requires capital, operational execution and decisions on development timing. Diversified will need to balance those requirements against its established acquisition strategy.

The company is also looking at further expansion in the Permian Basin. Diversified has been reported as the leading bidder and in early discussions over a possible acquisition of Birch Resources for about $1.7 billion in cash. If agreed, the acquisition would add to Diversified’s existing Permian position following its $1.3 billion purchase of Maverick Natural Resources in 2025.

Diversified Energy Company plc (LON:DEC, NYSE:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.

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