Diversified Energy to Acquire Birch in $1.8 Billion Permian Basin Deal

Diversified Energy has announced an agreement to acquire privately held Birch for approximately $1.8 billion, a move that will significantly expand its operations in the Permian Basin, the largest oilfield in the United States.

The acquisition adds Birch's production of about 68,000 barrels of oil equivalent per day and its portfolio of 480 net wells to Diversified's existing assets. The transaction will be financed primarily through a $1.5 billion asset-backed securitization arranged with investment firm Carlyle, supplemented by existing credit facilities.

As part of the deal, Diversified Energy and Carlyle have broadened their existing partnership. The two companies can now pursue up to $10 billion in future acquisitions, a substantial increase from the previous $2 billion limit.

Birch, which is backed by Elliott Investment Management, was formed from assets that were restructured following Breitburn Energy Partners' Chapter 11 bankruptcy in 2018.

This latest acquisition follows Diversified's purchase of Maverick Natural Resources in 2025, a deal valued at $1.28 billion including debt, which also brought Permian Basin assets into the company's portfolio.