Diversified Energy is in preliminary discussions to acquire Birch Resources, a potential deal that could significantly expand its position in the Permian Basin. The talks remain at an early stage and there is no certainty that a transaction will be agreed. Diversified has not confirmed a purchase price, financing structure or timetable.
Reports have indicated that a possible all-cash deal could value Birch Resources at more than $1.7 billion. If discussions advance at that level, the size of the transaction would put attention on funding, balance sheet capacity and the terms Diversified is able to secure.
Birch Resources is a privately held operator backed by Elliott Investment Management with assets in the Permian Basin. The region is already an important part of Diversified’s portfolio following its acquisition of Maverick Natural Resources.
Diversified completed the $1.28 billion acquisition of Maverick, including debt, in March 2025. That transaction increased the company’s exposure to the Permian Basin and added another major operating area to its US portfolio. A deal for Birch would therefore build on an existing regional position rather than move Diversified into a new market.
The potential transaction also fits the company’s established strategy. Diversified has completed 35 acquisitions representing more than $7 billion in value since its IPO in 2017, making acquisitions a central part of its growth model. The company has continued to pursue large transactions. In May, Diversified and Carlyle agreed to acquire oil and natural gas properties in Oklahoma from Camino Natural Resources for nearly $1.18 billion.
The reported value of more than $1.7 billion would also make Birch a substantial acquisition relative to Diversified’s equity valuation.
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.
