US-based Diversified Energy in early talks to acquire Birch Resources

Aug 14 (Reuters) - U.S.-based Diversified ‌Energy 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)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Workday stock surges on Silver Lake buyout talks report
• Simulations Plus clears US antitrust review for Altaris deal
• French taxpayers' data stolen in cyber attack, French Finance Ministry says