Diversified Energy Company has highlighted the increasing use of asset-backed securitisation (ABS) in upstream oil and gas transactions, following its participation in Hart Energy’s 2026 A&D Strategies & Opportunities Conference in Texas.
John Crain, CFA, represented Diversified on a panel examining the development of asset-backed securities in the energy sector and their growing role in financing oil and gas deals. The discussion focused on how ABS structures are being used to support acquisitions, provide access to institutional capital and offer an alternative to traditional financing arrangements.
Diversified has established considerable experience in this area, having completed 13 asset-backed securitisations since 2019. This activity places the company among the most active issuers of upstream oil and gas ABS and demonstrates its continued use of structured financing as part of its broader capital strategy.
The transactions have been backed by producing assets across four US basins: Appalachia, Mid-Continent, the Permian and East Texas. This geographical spread demonstrates the application of the financing structure across different operating areas and asset portfolios.
A key theme of the conference discussion was the transition of asset-backed securitisation from a relatively specialised financing option towards a more established component of upstream mergers and acquisitions. The structure provides companies with another route to finance producing assets and potentially support transactions without relying exclusively on conventional debt or equity funding.
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.
