Diversified Buys Birch Resources for $1.8 Billion

Diversified Energy is entering the Midland Basin through its $1.8 billion acquisition of Elliott Management-backed Birch Resources, the largest transaction in Diversified’s history. The deal adds approximately 68 Mboe/d of production, with a 70% liquids mix, and gives Diversified ownership of 480 net wells along with associated gathering, water disposal, and production infrastructure. Novi estimates Birch’s PDP PV10 at approximately $1.99 billion, implying a roughly 13% discount rate at the $1.8 billion purchase price and supporting Diversified’s strategy of acquiring mature producing assets at a discount to PDP value.

This Deal Insight examines the transaction economics, PDP production and valuation, financing structure, remaining inventory, and strategic implications of Diversified’s entry into the Midland Basin.

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