Diversified Energy Company has agreed to acquire Birch Permian Holdings and affiliated companies in a $1.8 billion transaction that will materially expand its position in the Permian Basin.
The deal is the largest acquisition in Diversified Energy’s 25-year history and is expected to complete in the fourth quarter of 2026, subject to regulatory approval and customary closing conditions.
Birch currently produces around 68,000 barrels of oil equivalent per day net. Diversified expects the acquisition to increase its total production by approximately 35%, taking operated gross production to around 2.5 billion cubic feet equivalent per day and net production to roughly 1.6 billion cubic feet equivalent per day.
The acquisition also changes Diversified’s commodity mix. Birch’s production is approximately 38% oil, 32% natural gas liquids and 30% natural gas, giving Diversified greater exposure to oil and liquids alongside its existing natural gas production. The assets include approximately 480 net wells across 46,000 net mineral acres in the Permian Basin. They contain around 1.17 trillion cubic feet equivalent of proved reserves and carry a reported PV-10 value of approximately $2 billion.
The portfolio also includes substantial operating infrastructure. Diversified will acquire 12 central production facilities, nine well gathering facilities and more than 60 miles of gathering pipelines. The assets also include five water disposal facilities linked by more than 80 miles of disposal and recycling pipelines.
Processing capacity reaches up to 345,000 barrels per day of oil and 310 million cubic feet per day of gas. The portfolio also includes more than 150 permitted enhanced oil recovery locations. These provide additional development options beyond the existing producing wells and could extend the value of the acquired asset base over time.
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.
