Diversified Energy to acquire Canvas Energy for $550M

Diversified Energy (DEC) announced that it has entered into an agreement to acquire Canvas Energy for total consideration of approximately $550M. The acquisition adds complementary operated producing properties and acreage positions in Oklahoma, concentrated in Major, Kingfisher, and Canadian Counties. Included in the acquisition are approximately 23 high quality wells that have been turned to sales in the last 12 months. The acquisition will be funded through a combination of the issuance of approximately 3.4M new U.S. dollar-denominated ordinary shares direct to the seller, a privately rated and bilaterally structured asset-backed securitization originated by Carlyle of up to $400M supported by the assets, along with the balance in cash from existing liquidity under the company’s borrowing capacity, subject to any purchase price adjustments. The ordinary shares will be subject to a customary commercial registration lock-up agreement. The company expects to close the acquisition during the fourth quarter of 2025.