Diversified and Carlyle Partner to Acquire Assets from Camino Natural Resources
Rhea-AI Summary
Diversified Energy (NYSE: DEC) and Carlyle partner to acquire oil and gas assets from Camino Natural Resources for a purchase price of $1,175 million, subject to customary adjustments. The transaction adds ~300 MMcfepd (~51 Mboepd) production, ~1,478 Bcfe proved reserves, and >100 drill-ready locations.
Financing is via a Carlyle-originated asset-backed securitization (ABS) held in a new SPV (Carlyle ~60%, Diversified ~40%), with Diversified funding ~$210 million from its senior secured credit facility. Close expected in Q3 2026, subject to customary conditions.
AI-generated analysis. Not financial advice.
Positive
- Purchase price of $1,175 million
- Estimated NTM EBITDA of ~$397 million
- Production addition of ~300 MMcfepd (~51 Mboepd)
- Total proved reserves of ~1,478 Bcfe
- Over 100 drill-ready locations and >450 pro forma inventory locations
- ABS financing avoids immediate Diversified equity issuance
Negative
- Diversified funds ~$210 million from senior secured credit facility
- Transaction uses complex ABS SPV structure that deconsolidates Diversified debt
- Purchase price implies ~$23,000 per flowing Mboe and ~3.0x NTM EBITDA
- Reserve and EBITDA estimates use NYMEX strip and engineering assumptions
News Market Reaction – DEC
On the day this news was published, DEC gained 1.43%, reflecting a mild positive market reaction. Argus tracked a trough of -2.0% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $17M to the company's valuation, bringing the market cap to $1.18B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DEC fell 2.73% while several peers like CRGY (-1.87%), TGS (-1.55%) and SLNG (-8.89%) also declined, but CVE rose 1.84%. Mixed peer moves and no scanner momentum flag suggest this reaction was more stock-specific than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Earnings timing update | Neutral | +1.8% | Announced Q1 2026 results release date and conference call details. |
| Apr 20 | Major holding change | Neutral | +0.7% | TR-1 showing Barclays position falling below a notifiable threshold. |
| Apr 13 | Corporate milestone | Neutral | -3.2% | 25th anniversary NYSE bell-ringing and related media appearances. |
| Mar 31 | Major holding disclosed | Neutral | -4.7% | Ameriprise reported a 5.056% indirect stake crossing the 5% threshold. |
| Mar 31 | TR-1 holdings update | Neutral | -4.7% | Barclays disclosed 3.41% via shares and 1.79% via instruments, totalling 3,995,580 votes. |
Recent DEC headlines, including holdings disclosures and corporate events, have produced mixed single‑day moves without a clear directional pattern around news.
Over the last few months, Diversified Energy’s news flow has centered on shareholder disclosures, corporate milestones, and upcoming results. TR-1 and Schedule 13G/A filings in March–April 2026 highlighted shifting major holdings, with single‑day moves ranging from about -4.7% to modest gains. A 25th‑anniversary NYSE bell‑ringing on Apr 13 coincided with a -3.23% move, while the Q1 2026 results timing notice on Apr 29 saw a 1.77% gain. Against this backdrop, today’s large Anadarko Basin acquisition represents a more material strategic step than these largely administrative updates.
Regulatory & Risk Context
An effective Form S-3ASR shelf dated March 9, 2026 registers 7,501,585 resale shares tied to prior transactions. These are being sold by existing holders and the company receives no proceeds, so the shelf primarily facilitates shareholder liquidity rather than new primary capital raising.
Market Pulse Summary
This announcement details a large Anadarko Basin acquisition with a $1,175 million price, expected NTM EBITDA of about $397 million, and roughly 300 MMcfepd of production plus 1,478 Bcfe in reserves. Financing relies on an ABS-backed SPV with Carlyle and about $210 million from DEC’s senior facility. Investors may watch future disclosures on integration progress, ABS terms, development of 100+ drill‑ready locations, and how cash flows affect leverage and capital allocation.
Key Terms
asset-backed securitization financial
abs financial
special purpose vehicle financial
spv financial
proved developed producing technical
ntm ebitda financial
mmcfepd technical
AI-generated analysis. Not financial advice.
Bolt-On to a Contiguous Operating Position that Contains Meaningful Identified Synergies and Potential Upside from Large Undeveloped Location Inventory
Innovative Asset-Backed Securitization (ABS) with Carlyle to Fund Purchase through Newly Created Special Purpose Vehicle (SPV) without Diversified Equity Issuance
Diversified Energy Company (NYSE: DEC, LSE: DEC) ("Diversified" or the "Company") in partnership with global investment firm Carlyle's (NASDAQ: CG) Global Credit platform are pleased to announce the execution of a purchase agreement for the acquisition of a bolt-on portfolio of certain oil and natural gas properties, along with related assets located within the Anadarko Basin of Oklahoma (the "Assets") from Camino Natural Resources (the "Acquisition"). Notably, the Acquisition provides an additional 100, high-quality undeveloped inventory locations in an active development area, with Diversified owning in excess of 450 locations in Oklahoma, pro forma for the acquisition. Camino will retain its ownership of the Chickasha development area.
The acquisition builds on the strategic partnership between Diversified and Carlyle announced in 2025, which combines Carlyle’s asset-backed finance capabilities with Diversified’s operating expertise to invest in proved developed producing (“PDP”) energy assets across the United States.
The Acquisition will be financed through a bespoke asset-backed securitization ("ABS") structured and arranged by Carlyle. In connection with the acquisition, Carlyle and Diversified will establish a newly formed special purpose vehicle that will hold the producing assets and issue debt backed by the underlying cash flows. Carlyle will hold a majority ownership interest in the SPV that issues the ABS, with Diversified retaining a minority ownership stake and serving as operator of the assets and manager of the ABS. In addition, Diversified will retain the ownership of the undeveloped assets outside the SPV. Diversified will fund a net amount, inclusive of customary purchase price adjustments, of approximately of
Acquisition Highlights
- Purchase price of
$1,175 million before anticipated, customary purchase price adjustments- Price per flowing Mboe of ~
$23,000 - ~3.0x multiple of NTM EBITDA(a)
- Price per flowing Mboe of ~
- Current net production of ~300 MMcfepd (~51 Mboepd)(b)
- Production mix of ~
55% gas, ~30% NGL’s, and15% oil
- Production mix of ~
- Includes ~101,000 acres with commercially attractive leasehold in SCOOP/STACK/MERGE
- Over 100 identified, drill-ready inventory locations with high (~
80% ) working interest
- Over 100 identified, drill-ready inventory locations with high (~
- Estimated NTM EBITDA of ~
$397 million (a)- Total Proved Reserves of ~1,478 Bcfe(c)
- Assets are contiguous with Diversified's existing Oklahoma assets
- Proximity to existing assets creates an immediate line of sight to future operating efficiencies and General & Administrative (G&A) savings
- Proximity to existing assets creates an immediate line of sight to future operating efficiencies and General & Administrative (G&A) savings
Rationale for Diversified and Carlyle's Partnership
- Enables attractive and accelerated growth for larger-scale transactions without the use of Diversified equity while providing off-balance sheet financing
- Promoted interest and management fees enhance Diversified’s economic returns
- Diversified maintains a preferential asset buyback option providing the opportunity to retain de-levered assets
- Delivers a competitive advantage and line-of-sight for pre-acquisition financing certainty
Innovative ABS Financing Structure and Transaction Consideration
- Purchase price expected to be funded through an investment-grade rated bilaterally structured asset-backed securitization originated by Carlyle, cash from Carlyle related to its ownership percentage in the ABS SPV, and availability under Diversified's senior secured credit facility
- Producing assets, along with certain wells to be turned-in-line, will be held by the ABS SPV with an ownership split of ~
60% Carlyle and ~40% Diversified - Undeveloped acreage and other non-production related assets will be owned
100% by Diversified, providing additional upside outside of the securitized structure - Diversified’s debt portion of the ABS SPV will be deconsolidated, off balance sheet financing, and its ownership percentage treated as a minority ownership structure
- Diversified will earn customary servicing and operating fees for managing the ABS and operating the assets
- Producing assets, along with certain wells to be turned-in-line, will be held by the ABS SPV with an ownership split of ~
Commenting on the Acquisition, CEO Rusty Hutson, Jr. said:
"I am excited to again partner with Carlyle and work collaboratively to structure an innovative financing to acquire high-quality assets, grow our portfolio, and realize the long-term value associated with the Acquisition. The assets are a perfect fit with our existing Oklahoma operations and offer meaningful opportunities for material synergies upon completion of the Acquisition. The transaction adds scale to our regional footprint and remains consistent with our strategy of acquiring high-quality, producing assets at attractive valuations. These assets will benefit from our Smarter Asset Management approach, which we expect will improve production, enhance margins, and grow free cash flow.
Additionally, we anticipate incremental cash flow from our Portfolio Optimization Programs, given the significant number of drill-ready inventory locations identified as part of the Acquisition. Importantly, this added NAV value to our reserves provides the opportunity to potentially improve our production or generate meaningful added free cash flow in future periods. Our Company has a proven, demonstrated track record of delivering value to shareholders from our strategy of acquiring, operating, and optimizing established cash-generating energy assets."
Akhil Bansal, Head of Asset-Backed at Carlyle said:
"This transaction demonstrates what's possible when structuring expertise and long-term capital are paired with a best-in-class operator. We're proud to work alongside Diversified to create a financing solution purpose-built for these assets, and we see this as a model for how Carlyle approaches asset-backed investing."
Bolt-On Addition of Contiguous PDP Assets & Undeveloped Inventory
The Acquisition's estimated NTM EBITDA(a) is approximately
The Assets include an approximate 101,000 acres with over 100 identified, drill-ready locations. When combined with the current undeveloped locations acquired from Diversified's recent Oklahoma acquisitions, the Company has identified an estimated over 450 highly economic development locations under conservative commodity pricing assumptions. This quality and depth of inventory equates to approximately 30+ years of inventory at a one-rig drilling pace (11-14 wells/year). Importantly, the undeveloped acreage presents potential upside opportunities in line with Diversified's demonstrated ability to unlock value from its vast portfolio of assets, and the Assets provide opportunities to realize synergies attributable to Diversified’s operating scale and asset density.
This investment is being led by Carlyle’s Asset-Backed Finance (“ABF”) team within the Global Credit platform. Carlyle ABF focuses on private fixed income and asset-backed investments, leveraging the firm’s global platform to deliver tailored financing solutions to businesses, specialty finance companies, and asset owners. Carlyle ABF has deployed approximately
ADVISORS
Kirkland & Ellis LLP is serving as legal advisors, and Citi & Truist Securities are serving as financial advisors to Diversified on the Acquisition. Latham & Watkins and Paul Hastings are serving as legal advisors to Carlyle. Jefferies LLC is serving as lead financial advisor and RBC Richardson Barr is serving as co-financial advisor to Camino. Vinson and Elkins is serving as legal advisor to Camino.
Footnotes:
| a) | Camino estimated EBITDA based on engineering reserves assumptions using historical cost assumptions and NYMEX strip pricing as of May 4, 2026 for the 12 month period ended March 1, 2027; please refer to the "EBITDA" definition below. |
| b) | Current production based on estimated average daily production for 2026; Estimate based on historical performance and engineered type curves for the Assets. |
| c) | Reserves values calculated using historical production data, asset-specific type curves and an effective date of March 1, 2026 and based on the NYMEX strip at May 4, 2026 for 5 years, with terminal price assumptions of |
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse, as it forms part of the UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
For further information, please contact:
| Diversified Energy Company | 19738562757 | ||||
| Doug Kris | dkris@dgoc.com | ||||
| Senior Vice President Investor Relations & Corporate Communications | www.div.energy | ||||
| FTI Consulting | dec@fticonsulting.com | ||||
| U.S. & UK Financial Public Relations | |||||
| Carlyle Media Contact | |||||
| Ben Howard | 19145524281 | ||||
| Prosek | bhoward@prosek.com | ||||
About Diversified Energy Company
Diversified is a leading publicly traded energy company focused on acquiring, operating, and optimizing cash-generating energy assets. Through our unique differentiated strategy, we acquire established assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. With
Forward-Looking Statements
This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). These forward-looking statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve", "opportunity" and words of similar meaning, reflect the Company's beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Expected benefits of the Acquisition may not be realized and the Acquisition may not close on the terms described in this release, or at all. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, including the risk factors described in the "Risk Factors" section in the Company's Annual Report and Form 10-K for the year ended December 31, 2025, filed with the United States Securities and Exchange Commission. The pro forma financial information in this announcement is for informational purposes only, is not a projection of our future financial performance, and should not be considered indicative of actual results should the Acquisition be consummated. Forward-looking statements speak only as of their date and neither the Company nor any of its directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. As a result, you are cautioned not to place undue reliance on such forward-looking statements.
EBITDA
As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortization. We are unable to provide a quantitative reconciliation of forward-looking EBITDA to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts.
