Diversified Energy Company has announced the closing of its previously announced, accretive acquisition of Canvas Energy, which adds complementary operated producing properties and acreage positions in Oklahoma. In conjunction, the Company closed on a $400mm asset backed securitization ('ABS') to fund the Acquisition.

Acquisition Highlights

• Current net production of ~147 MMcfepd (24 Mboepd)(a)
  • ~13% increase to stand-alone Diversified(a)
  • Significant operational overlap in Central Oklahoma, with a combined ~1.6 million net acres
• Purchase price of ~$550 million with a purchase price multiple of ~3.5x on NTM EBITDA(b)
  • Estimated NTM EBITDA of ~$155 million(b), before anticipated synergies
• Proved PV-10 of ~$690 million(c), and ~200 MMBoe of Total Reserves(d)
• Anticipate meaningful annual run rate synergies
• Acquisition includes commercially attractive undeveloped acreage with meaningful development locations, providing optionality for portfolio optimization activities

ABS Financing Highlights

• $400 million ABS XI note structured as a master trust
• Privately rated & bi-laterally structured that was provided by Carlyle managed funds and a select group of co-investors.
• “A” tranche notes priced at blended coupon of 5.97%, benefited by an investment grade rating

Issue of shares

In connection with the Acquisition, the Company has issued 3,720,125 new shares of common stock, par value $0.01 each, in the capital of the Company (the “Consideration Shares”) to the former holders of all of the issued and outstanding equity interests in Canvas. The Consideration Shares will be listed on the New York Stock Exchange and will rank pari passu in all respects with Diversified's existing shares of common stock.

Applications have been made to (i) the Financial Conduct Authority (the “FCA”) for admission of the Consideration Shares to listing on the equity shares (international commercial companies secondary listing) category of the Official List; and (ii) London Stock Exchange plc for admission of the Consideration Shares to trading on its main market for listed securities. It is expected that Admission will occur at 8.00 a.m. (London time) on November 25, 2025.

KeyFacts Energy Industry Directory: Diversified Energy   l   KeyFacts Energy: Acquisitions & Mergers news