Diversified Energy Co. PLC announced Tuesday it will acquire Canvas Energy Inc. for $550 million, cementing its presence in the oil-rich Anadarko Basin of Oklahoma and fortifying its position in one of the nation’s most prolific petroleum-producing regions.
The deal, expected to close in the final quarter of 2025, marks a major expansion move for Diversified, which is dual-listed on the FTSE 250 in London and the New York Stock Exchange.
Financing the $550 Million Acquisition
Diversified revealed it will raise up to $400 million in debt financing to fund the bulk of the purchase, pledging oil and gas well production into an asset-backed securitization vehicle created by Carlyle’s global credit platform.
Additionally, Diversified will issue 3.4 million new U.S.-dollar-denominated shares to Canvas as part of the transaction. Notably, the acquisition does not require shareholder or regulatory approval, clearing the path for a swift close.
Strategic Rationale Behind the Deal
Rusty Hutson Jr., CEO of Diversified, called the acquisition “an attractive opportunity” that delivers immediate cash flow growth.
“This purchase strengthens Diversified by expanding our footprint in Oklahoma with targeted assets that fit perfectly with our scale,” Hutson said. “It allows us to capture synergies, enhance margins, and drive long-term cash flow growth.”
Canvas’ assets are expected to add about 24 million barrels of oil equivalent per day, boosting Diversified’s production by 13%.
