Diversified Energy sharpens focus in Oklahoma with new acquisition

Diversified Energy Company

Diversified Energy has agreed to acquire Canvas Energy for approximately $550 million in a deal that signals far more than expansion.

Canvas brings producing oil and gas assets squarely located in three Oklahoma counties where Diversified already has a footprint: Major, Canadian, and Kingfisher. These aren’t speculative plays or undeveloped tracts, they include 23 horizontal wells drilled within the past 18 months. That suggests a set of assets with current momentum, not legacy decline. For an operator like Diversified, it’s a well-aligned addition.

The acquisition will be financed through a mix of equity, long-term financing, and cash on hand. That includes issuing roughly 3.4 million new shares, alongside drawing on Diversified’s existing securitisation structure. The capital mix seems designed to maintain flexibility while preserving balance sheet discipline. It avoids unnecessary debt stress while keeping financial optionality open for future deployment.

Legal and transaction structuring is being handled by Kirkland & Ellis, advising Diversified through teams across energy transactions, finance, tax, and capital markets. The scale of advisory coordination reflects the complexity and sophistication behind what might otherwise look like a regional deal.

While the transaction carries headline value in the hundreds of millions, its real weight lies in the broader operating model. Diversified is not chasing frontier resource growth. Instead, it is methodically building density where it already understands the ground, has existing infrastructure, and can realise meaningful operational efficiencies.

Diversified Energy Company plc (LON: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.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

Diversified Energy to announce Q3 2025 results on 3 November

Diversified Energy Company will publish its financial and operational results for the third quarter of 2025 on 3 November after the US market close.

Fund manager interview on Diversified Energy – US gas, fantastic yield and growing US base (LON:DEC)

Gervais Williams, Co-Fund Manager of The Diverse Income Trust plc, highlighted Diversified Energy Company plc’s strong cash flow, high dividend yield, and growing US investor base in an interview with

The Diverse Income Trust Gervais Williams Eyes Big Gains from Gold, Gas and Tech (Video)

Gervais Williams reveals how The Diverse Income Trust is crushing major indices — powered by standout picks in gold, gas, and fintech.

Diversified Energy to shift primary listing to NYSE, retain secondary LSE listing

Diversified Energy Company has announced plans to move its primary listing to the New York Stock Exchange while maintaining a secondary listing on the London Stock Exchange.

Diversified Energy completes $550m Canvas Energy acquisition with Carlyle backing

Diversified Energy has agreed to acquire Canvas Energy for approximately $550 million. The deal, funded through a Carlyle-backed asset securitisation, cash, and new shares, adds producing assets in Oklahoma and

Diversified Energy announces new Board appointments

Diversified Energy Company has announced that Sandra Stash will step down from its Board of Directors. David Turner will become Senior Independent Director, Kathryn Klaber will chair the Sustainability Committee,

Search

Search