US-based Diversified Energy in early talks to acquire Birch Resources

U.S.-based Diversified Energy is reportedly in early discussions to acquire privately held Birch Resources, according to Bloomberg News on Thursday. The potential all-cash transaction, valued at over $1.7 billion, would mark a significant expansion for Diversified into the oil and gas-rich Permian Basin.

This move follows Diversified's March 2025 acquisition of Maverick Natural Resources, which also had a substantial presence in the Permian Basin, for $1.28 billion including debt. Diversified's shares responded negatively to the news, closing down more than 2% on Thursday. Despite this, the company maintains a market capitalization of approximately $1 billion, according to LSEG data.

Diversified has made it clear that no agreement has been reached and that there is no certainty or predetermined terms for any potential transaction. Birch Resources, backed by investment firm Elliott Investment Management, operates in the same Permian Basin region.

Birch was formed as a result of the 2018 Chapter 11 bankruptcy agreement involving Breitburn Energy Partners. Despite efforts to reach Birch for comment, the company could not be reached. Separately, in May, Diversified and Carlyle agreed to acquire oil and natural gas properties in Oklahoma from Camino Natural Resources for nearly $1.18 billion.