Diversified Energy Moves from Talks to Definitive Accretive Birch Acquisition
DEC sits 24% above its 52-week low of $12.33.
Summary
Diversified Energy has entered into a definitive agreement to acquire Birch Resources for $1.8 billion, describing the deal as accretive. The acquisition is expected to increase production by 35% and adjusted EBITDA by 55%, creating a scaled, vertically integrated position in the Permian Basin. Additionally, Carlyle and Diversified Energy have expanded their strategic partnership to pursue up to $10 billion in future opportunities. This follows the company's recent $1.2 billion Camino acquisition, signaling continued consolidation in its core operating areas.
At the time of this announcement, DEC was trading at $15.25 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $12.33 to $18.90. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.