DEC & CG Partner on Major Energy Asset Acquisition

Diversified Energy Company (DEC) and global investment firm Carlyle (CG) have partnered to acquire a portfolio of oil and gas assets from Camino Natural Resources. This deal builds on a strategic partnership the two companies announced in 2025, which aims to combine Carlyle's financing muscle with Diversified's operational expertise.

The transaction uses an innovative asset-backed securities (ABS) financing structure, with a total consideration of approximately $1.175 billion. This method allows for off-balance sheet financing, meaning DEC can grow without taking on traditional corporate debt or diluting shareholders by issuing new stock.

The acquired assets are primarily proved developed producing (PDP) properties, meaning they are already in operation with predictable cash flows. They are located in Oklahoma's Anadarko Basin, which is contiguous to DEC's existing operations there, making them a natural geographic fit.

For the next twelve months, the assets are expected to add about 300 million cubic feet equivalent per day of production and generate an estimated $397 million in EBITDA. The deal also includes over 450 undeveloped drilling locations, providing a long-term inventory for future growth.

For Diversified Energy, this is a textbook bolt-on acquisition. Adding production that's right next door to existing operations creates significant operational synergies and cost savings. More importantly, the ABS financing structure is a game-changer, allowing DEC to make a large-scale purchase without straining its balance sheet or hurting existing shareholders through equity dilution.

The deal validates Carlyle's asset-backed finance strategy. By structuring a complex, billion-dollar securitization tailored for energy assets, Carlyle demonstrates deep expertise and a repeatable model for future investments. It's a showcase transaction for their ABF division.

From a market perspective, the acquisition reinforces a trend of consolidation in the U.S. energy sector, particularly for mature, cash-flowing assets. It shows that well-capitalized operators and financiers see long-term value in these stable-producing basins.

For investors, the key metrics are compelling: the purchase price implies a valuation of roughly 3x estimated EBITDA, which is considered attractive. The added cash flow should support DEC's ability to maintain its dividend, a critical factor for its income-focused shareholder base.