Diversified Energy is making a bold move to strengthen its position in key US basins with its largest acquisition to date, a nearly $1.3 billion deal for Maverick Natural Resources. This transformative transaction significantly expands Diversified’s footprint and production base, reinforcing its status as a leading player in the consolidation of legacy assets.
The acquisition, announced on 27 January, brings together two significant asset portfolios, enhancing Diversified’s presence in the Appalachian Basin, western Anadarko Basin, Permian Basin, Barnett Basin, and the Ark-La-Tex region. The combined entity will have an enterprise value of approximately $3.8 billion and operate across five major regions with a total production base of around 1,200 MMcfe/D, consisting of both liquid hydrocarbons and natural gas.
Diversified Energy CEO Roy Hutson expressed confidence in the deal, highlighting the strength of the acquired assets and their strategic fit within the company’s portfolio. Hutson noted that the assets exhibit leading well performance and align seamlessly with Diversified’s operational expertise. He also emphasised the company’s increased presence in the western Anadarko region and its intention to explore the potential of undeveloped acreage, particularly in the emerging Cherokee formation. While immediate drilling plans were not disclosed, Diversified sees long-term value in these holdings.
Industry experts see this deal as a major step forward for Diversified. Andrew Dittmar, principal analyst at Enverus Intelligence Research, remarked that the acquisition significantly scales up the company’s operations, reinforcing its strategy of acquiring legacy assets at attractive valuations and optimising them for cash flow. He further noted that Diversified’s business model focuses on maximising the value of existing production rather than pursuing aggressive new development. For sellers like EIG, which owns Maverick, Diversified provides a reliable exit strategy for assets that may not attract broader public company interest.
The transaction structure includes the assumption of nearly $700 million in Maverick’s outstanding debt. Additionally, Diversified will issue 21.2 million new ordinary shares to Maverick’s shareholders, valued at approximately $345 million, alongside a $207 million cash payment.
Completion of the deal is subject to regulatory and shareholder approvals and is expected to close within the first half of the year. Upon finalisation, EIG will hold a 20% stake in the combined company, further solidifying its investment in Diversified through prior transactions.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
