Diversified Energy to Buy Birch Permian Holdings for $1.8 Billion
The deal is the largest in the company’s 25-year history and is expected to add about 68 Mboepd of operated Permian production.
Diversified Energy Company (DEC) agreed to buy Birch Permian Holdings, Inc. and certain affiliated companies in an asset purchase valued at approximately $1.8 billion, the largest acquisition in the company’s 25-year history.
The deal is expected to close during the fourth quarter of 2026, subject to customary closing conditions. The transaction creates a scaled, vertically integrated position in the Permian Basin and adds a scaled, operated position of proved developed producing assets in the heart of America’s most productive oil basin.
The acquisition is expected to add approximately 68 Mboepd of production, further strengthening Diversified’s position as a significant operator and marketer of oil and natural gas in the United States. Birch is a premier Permian Basin operator with a concentrated footprint in the core of the basin, substantial production scale, integrated infrastructure, and a track record of delivering predictable, high-margin cash flows.
Chief Executive Rusty Hutson, Jr. said the assets align with the company’s approach to acquiring and optimizing long-life energy assets and provide a platform for future value creation. The transaction will establish Diversified as a scaled operator in the nation’s most important oil-producing basin and create a strategic position from which the company can pursue future consolidation opportunities across the Permian.
Hutson said Diversified’s operational expertise, Smarter Asset Management, and Portfolio Optimization Program can further unlock value across the asset base while maintaining the capital allocation framework that has defined the company’s success. He said Birch provides immediate scale, strong cash returns, and a foundation for continued growth in the Permian.
The deal follows a run of smaller bolt-ons. In March, Diversified agreed to buy high-working-interest natural gas properties in East Texas from Sheridan Production for $245 million in cash, expected to close in the second quarter of 2026. In May, it partnered with Carlyle to acquire an Oklahoma Anadarko portfolio from Camino Natural Resources for a net amount of about $210 million, financed through an asset-backed securitization and expected to close in the third quarter. Those deals added contiguous operating positions and low-decline production; Birch is framed as a step into operated Permian scale.
In August, Diversified confirmed preliminary discussions about a possible acquisition of Birch Resources, saying talks remained at an early stage and that no agreement had been reached. The company has made 35 acquisitions totaling more than $7 billion since its 2017 IPO. The September agreement converts those talks into a definitive $1.8 billion asset purchase.
Diversified sees opportunities in long-life PDP assets and infrastructure-rich operated positions as North American resource development matures. Birch represents an asset base that fits Diversified’s model of acquiring, operating, and optimizing cash-generating energy assets.