Core Viewpoint - Diversified Energy Co. PLC is acquiring Canvas Energy for $550 million, which will enhance its operations in Oklahoma and significantly boost production and cash flow metrics [1][4]. Group 1: Acquisition Details - The acquisition includes producing wells and undeveloped acreage in Major, Kingfisher, and Canadian counties [1]. - Canvas Energy produces approximately 147 million cubic feet equivalent per day, with reserves valued at nearly $690 million [1][2]. - The Oklahoma properties have EBITDA margins of about 70% and will immediately contribute to cash flow [2]. Group 2: Financial Impact - The acquisition is expected to increase production by 13%, adjusted EBITDA by 18%, and free cash flow by 29% [1]. - The deal will be funded through 3.4 million newly issued shares, up to $400 million in Carlyle-backed securitization, and existing cash and borrowing capacity [4]. Group 3: Strategic Importance - The CEO described the acquisition as a "perfect fit" that enhances the company's scale and cash flow, indicating a strong alignment with future growth strategies [3]. - The overlapping infrastructure from the acquisition is anticipated to reduce costs and improve operational efficiency [2][4].