US-based Diversified Energy in early talks to acquire Birch Resources
US-based Diversified Energy in early talks to acquire Birch Resources Aug 14 (Reuters) - U.S.-based Diversified Energy DEC.N said on Friday it is in early discussions to acquire privately held Birch Resources, as it looks to further expand into the oil and gas-rich Permian Basin.
Bloomberg News first reported the talks on Thursday, citing people familiar with the matter, and saying a potential all-cash transaction would value Birch at more than $1.7 billion.
Here are some more details:
The talks follow Diversified's March 2025 acquisition of Maverick Natural Resources, which also had an asset base in the Permian Basin, for $1.28 billion including debt.
Shares of Diversified closed down more than 2% on Thursday, after Bloomberg's reporting on the talks. The company has a market capitalization of about $1 billion, according to LSEG data.
"No agreement has been reached, and there is no certainty that any transaction will occur, nor as to the terms on which any transaction might proceed," Diversified said in a statement.
Birch, backed by investment firm Elliott Investment Management, operates in the Permian Basin, the largest oilfield in the U.S.
The company was formed out of energy assets from the 2018 Chapter 11 bankruptcy agreement of Breitburn Energy Partners.
Elliott did not immediately respond to a Reuters request for comment. Birch Resources could not be immediately reached.
Separately, Diversified and Carlyle had agreed in May to acquire certain oil and natural gas properties in Oklahoma from Camino Natural Resources for nearly $1.18 billion.
(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Mrigank Dhaniwala)
((Rajveersingh.pardesi@thomsonreuters.com))