In the licensing, mergers, and portfolio moves bucket, Diversified Energy is in advanced talks to acquire Birch Resources for more than $1.7 billion in cash. Bloomberg reported that a deal could be announced in the coming weeks, though no final decision has been made and another bidder could still emerge.
Birch operates in the Permian Basin and is backed by Elliott Investment Management. Elliott joined a group that acquired the assets from insolvent Breitburn Energy Partners in 2018, using its creditor position to take control of the basin properties.
Diversified Energy completed a $1.3 billion takeover of Maverick Natural Resources last year and struck a $1.2 billion deal with Carlyle for Camino Natural Resources in May. Its shares closed Thursday at $14.17 after falling 2.1 percent, leaving the company with a market value of about $1 billion.
A Birch transaction would add to a busy stretch of upstream consolidation. Magnolia Oil and Gas agreed in July to buy WildFire Energy for about $4.1 billion including debt, while Matador Resources agreed to acquire Permian assets from EnCap Investments for roughly $1.3 billion.