Key facts
- Diversified Energy is in early talks to acquire Birch Resources.
- The potential transaction could value Birch Resources at over $1.7 billion.
- Birch Resources operates in the Permian Basin and is backed by Elliott Investment Management.
- Diversified Energy previously acquired Maverick Natural Resources for $1.28 billion.
- Diversified Energy and Carlyle are acquiring oil and gas properties in Oklahoma for nearly $1.18 billion.
U.S.-based Diversified Energy announced on Friday that it is engaged in preliminary discussions to acquire Birch Resources, a privately held entity operating within the oil and gas-rich Permian Basin. The potential all-cash transaction, first reported by Bloomberg News, could value Birch Resources at over $1.7 billion. Diversified Energy stated that no agreement has been reached and there is no certainty that any transaction will occur or on what terms.
This potential acquisition follows Diversified's March 2025 purchase of Maverick Natural Resources, also an asset base in the Permian Basin, for $1.28 billion including debt. Shares of Diversified closed down more than 2% on Thursday following the initial reporting of the talks. The company currently holds a market capitalization of approximately $1 billion, according to LSEG data.
Birch Resources, which is backed by investment firm Elliott Investment Management, was formed from energy assets acquired through the 2018 Chapter 11 bankruptcy of Breitburn Energy Partners. Elliott Investment Management and Birch Resources did not immediately respond to requests for comment.
In a separate development, Diversified Energy and Carlyle agreed in May to acquire certain oil and natural gas properties in Oklahoma from Camino Natural Resources for nearly $1.18 billion.