Diversified Energy to Buy Permian Producer Birch for $1.8 Billion

Diversified Energy has finalized a $1.8 billion acquisition of Permian Basin producer Birch Permian Holdings and its affiliated companies, marking the largest deal in its 25-year history. The acquisition will add approximately 68,000 barrels of oil equivalent per day to Diversified's production, based on Birch's estimated July 2026 output.

This deal is expected to increase Diversified's production by roughly 35% and adjusted EBITDA by about 55%. Birch's production mix is 38% oil, 32% natural gas liquids, and 30% natural gas, with about 46,000 net mineral acres and 480 net wells in the Permian. The transaction is expected to provide around $548 million in annualized adjusted EBITDA, representing a significant expansion of Diversified's Permian operations.

The acquisition multiple is estimated at approximately 3.3 times adjusted EBITDA. The deal, to be completed in the fourth quarter of 2026, is financed through $1.5 billion of asset-backed securitization financing and other sources, with a $50 million break fee.