Aug 14 (Reuters) - U.S.-based Diversified Energy said on Friday it is in early discussions to acquire privately held Birch Resources, as it looks to further expand into the oil and gas-rich Permian Basin.
Bloomberg News first reported the talks on Thursday, citing people familiar with the matter, and saying a potential all-cash transaction would value Birch at more than $1.7 billion.
Here are some more details:
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The talks follow Diversified's March 2025 acquisition of Maverick Natural Resources, which also had an asset base in the Permian Basin, for $1.28 billion including debt.
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Shares of Diversified closed down more than 2% on Thursday, after Bloomberg's reporting on the talks. The company has a market capitalization of about $1 billion, according to LSEG data.
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"No agreement has been reached, and there is no certainty that any transaction will occur, nor as to the terms on which any transaction might proceed," Diversified said in a statement.
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Birch, backed by investment firm Elliott Investment Management, operates in the Permian Basin, the largest oilfield in the U.S.
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The company was formed out of energy assets from the 2018 Chapter 11 bankruptcy agreement of Breitburn Energy Partners.
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Elliott did not immediately respond to a Reuters request for comment. Birch Resources could not be immediately reached.
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Separately, Diversified and Carlyle had agreed in May to acquire certain oil and natural gas properties in Oklahoma from Camino Natural Resources for nearly $1.18 billion.
Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Mrigank Dhaniwala
Source: Reuters