NewsNovo
The case for Diversified Energy's $1.8 billion acquisition of Birch Permian Holdings is compact: 3.3 times the $548 million in annualized adjusted EBITDA Diversified attributes to the Permian Basin producer, based on August 17 strip pricing.
What complicates the read is that roughly three-quarters of the 480 net wells in the deal date from 2022 or earlier. The deal is the largest in Diversified's 25-year history.
It adds approximately 68,000 barrels of oil equivalent per day of net production, based on Birch's estimated July 2026 output, with Diversified projecting a 35% increase in total production and a 55% lift in adjusted EBITDA.
The asset mix skews toward liquids: Birch's production runs approximately 38% oil, 32% natural gas liquids, and 30% natural gas.
Keep reading