Diversified Energy Company plc

Diversified Energy announced definitive agreements on September 2 to acquire Birch Permian Holdings from affiliates of Elliott Investment Management for roughly $1.8 billion, the largest acquisition in the company's history. The deal is expected to lift production by about 35% and Adjusted EBITDA by roughly 55%, and management expects the assets to add roughly $548 million of annualized Adjusted EBITDA at close to 80% margins, with pro forma gross volumes reaching approximately 2.5 Bcfepd. Roughly $1.5 billion of the purchase price runs through an asset-backed securitization arranged with Carlyle, and the two firms have expanded their partnership from an original $2 billion framework to a potential $10 billion of future opportunities. The company is funding the acquisition primarily with $1.5 billion of asset-backed debt plus draws on its revolving credit facility, and the close is not expected until the fourth quarter of 2026, subject to customary conditions. Diversified's second quarter results, reported on August 5, showed net income of $248 million including a paper gain tied to unsettled, non-cash derivatives, while Adjusted EBITDA came in at $240 million and operating cash flow at $89 million. Hedge fund ownership fell from 31 funds to 27 in the most recent quarter, short interest sits at 9.29% of float, and as of September 11 the stock trades at a forward P/E of 4.95.

Diversified Energy has agreed to acquire Birch Permian and affiliated companies from Elliott Investment Management for approximately $1.8 billion, marking its largest acquisition in its 25-year history. The deal, expected to close in the fourth quarter of 2026, will add significant proved developed producing oil and gas assets in the Permian Basin. Diversified plans to fund the acquisition primarily through a $1.5 billion asset-backed securitisation with Carlyle, supplemented by its revolving credit facility and other financing sources. The acquisition is expected to boost production volume by 35% and adjusted EBITDA by 55%, with Birch currently producing about 68,000 barrels of oil equivalent per day. Diversified also expanded its partnership with Carlyle to potentially pursue up to $10 billion in additional PDP asset acquisitions.

Diversified Energy Company PLC has agreed its biggest-ever deal, paying $1.8 billion for Permian Basin producer Birch, a move expected to boost production by around 35%. In other corporate news, Galliford Try Holdings PLC has landed a £110 million contract to build a 23-kilometre pipeline for Severn Trent to improve water quality in the River Mease. Sunda Energy PLC saw a major upgrade at its Halcon prospect offshore the Philippines, now assigned 8 trillion cubic feet of gas resources, giving Sunda a net share of 3 Tcf. Rockfire Resources PLC reported promising early processing tests at its Molaoi zinc project in Greece, with ore classed as "Medium-Hard" and within normal grinding energy requirements. Solvonis Therapeutics PLC received a key European patent allowance for its PTSD drug candidate SVN-114, calling it a vital milestone. Futura Medical PLC has initiated a formal sale process for the business behind its Eroxon gel and raised £1.6 million to fund the process.

Several major acquisition deals were reported across sectors this week. Workday soared 19% on a report that private equity firm Silver Lake is in talks to buy the software company. Diversified Energy is in advanced talks to acquire Elliott Investment Management-backed oil and gas company Birch Resources for more than $1.7 billion in cash. EQT Infrastructure offered to buy Cleanaway Waste Management in a deal that values the Australian listed firm at about A$6.9 billion, or $4.9 billion. H.B. Fuller said it received an unsolicited proposal from Ancora Holdings to buy its building adhesives solutions business for $1.1 billion to $1.2 billion in cash. Aurora Cannabis soared 21% after Curaleaf Holdings said it plans to make a $4 per share takeover bid, with Curaleaf rising 6.7%. H&R Real Estate Investment Trust agreed to be acquired by GO Residential Real Estate Investment Trust and a consortium including Blackstone, Crestpoint, PSP Investments and a company controlled by members of the family of H&R CEO Tom Hofstedter in a deal valued at about C$6.7 billion, including assumed debt. Israeli AI startup Decart is in advanced talks to be sold to a major tech firm for $6 billion to $7 billion. Jazz Pharmaceuticals announced it will acquire privately held Actio Biosciences for $820 million upfront and up to $500 million in potential milestones.

Diversified Energy Company has purchased 328,781 shares of its common stock at a volume-weighted average price of $13.402 per share through Mizuho Securities USA LLC as part of its share buyback program announced on March 20, 2025. The shares were acquired on June 29, 2026, at prices ranging from $13.10 to $13.56, and will be cancelled. Following the cancellation, the company will have 71,707,365 shares in issue with none held in treasury.

Zacks Investment Research featured Bloom Energy, Crescent Energy, and Diversified Energy as three highly ranked alternative energy stocks with a Zacks Rank number one, or Strong Buy. Bloom Energy, priced at $338, saw first-quarter revenue surge 130% year over year to $751.05 million, driven by a 208% jump in product revenue, and its earnings per share of $0.44 crushed estimates by 388%. Crescent Energy, trading at $10, generated $192 million in levered free cash flow in the first quarter as production climbed 32% to 341,000 barrels of oil equivalent per day, supported by $120 million in Permian Basin acquisition synergies. Diversified Energy, at $12 a share, posted $91 million in adjusted free cash flow, up 157% from a year earlier, and offers an 8% annual dividend yield while trading at 2 times forward earnings. The three companies are benefiting from trends such as AI-driven power demand, operational efficiencies, and disciplined asset management, with analysts raising earnings estimates.

Diversified Energy Company declared a fourth-quarter 2025 dividend of 29 cents per share. The dividend will be paid on June 30, 2026 to shareholders of record as of May 29, 2026. Shareholders electing to receive payment in GBP sterling will receive 21.567 pence per share, based on an exchange rate of 0.74370 GBP to 1.00 USD as of June 9, 2026.