Key Takeaways - Diversified Energy Company (DEC) has completed the acquisition of Canvas Energy, enhancing its production capacity and operational scale through the addition of significant assets and acreage in Oklahoma [1][2] Acquisition Details - The acquisition adds approximately 147 million cubic feet equivalent of natural gas per day to DEC's net production, increasing its output by roughly 13% [2] - The purchase price for the assets is around $550 million, valuing them at approximately 3.5 times the expected next-twelve-month EBITDA [2] - DEC gains nearly 1.6 million net acres in Central Oklahoma, which enhances operational overlap and creates new optimization opportunities [2] Financial Structure - To finance the acquisition, DEC utilized a $400 million asset-backed securitization (ABS) structure, supported by Carlyle-managed funds and co-investors [3] - The ABS XI issuance features an investment-grade "A" tranche with a blended coupon of 5.97%, allowing DEC to maintain financial discipline while expanding its asset base [3] Share Issuance - As part of the transaction, DEC issued 3,720,125 new common shares to former Canvas equity holders, bringing the total number of shares outstanding to 80.4 million [4] - Each share carries one vote, resulting in a total of 80.4 million voting rights in the company as of November 24, 2025 [4] Company Overview - DEC is focused on natural gas and liquids production, transport, marketing, and well retirement, currently holding a Zacks Rank 3 (Hold) [5]
Diversified Energy Expands Portfolio With Canvas Energy Acquisition