Diversified Energy to Acquire Permian Basin Operator Birch in $1.8 Billion Deal
Diversified Energy announced a $1.8 billion deal to buy privately held Birch, gaining assets in the Permian Basin.
U.S.-based oil and gas producer Diversified Energy has announced plans to acquire privately held Birch, a company with operations in the Permian Basin, in a deal valued at approximately $1.8 billion.
The announcement was made on Wednesday, signaling a significant expansion for Diversified Energy into one of the most productive oil and gas regions in the United States. The Permian Basin, which spans parts of western Texas and southeastern New Mexico, is known for its substantial hydrocarbon reserves and robust drilling activity.
The acquisition of Birch will add to Diversified Energy's existing portfolio of assets. While the company has not disclosed further details about the transaction's structure or expected closing date, the move underscores the ongoing consolidation trend within the U.S. energy sector as producers seek to bolster their positions in high-quality acreage.
Financial terms of the deal were confirmed in the company's statement, though no additional specifics regarding Birch's current output or reserve base were provided in the initial announcement.