Diversified Energy has agreed to acquire Canvas Energy along with its assets in a deal worth around $550m to boost its footprint in Oklahoma, US.
The acquisition, expected to be finalised in Q4 2025, includes operated producing properties and acreage located mainly in Major, Kingfisher, and Canadian Counties in Oklahoma. As part of this transaction, Diversified will incorporate about 23 wells that commenced operations within the past year.
This acquisition aims to enhance Diversified’s existing portfolio in Oklahoma, contributing an estimated $155m in next 12 months (NTM) adjusted EBITDA.
The company anticipates unlocking significant synergies from the integration, leading to potential expense reductions and optimised cash flow. Funding for the purchase will come through a mix of asset-backed securitisation facilitated by Carlyle, available liquidity, and the issuance of roughly 3.4 million shares.
The acquired assets comprise approximately 200 million barrels of oil equivalent in total reserves with a proved PV-10 valuation approximating $690m. This acquisition is calculated at a purchase price multiple of about 3.5 times NTM EBITDA.
Current net production from these assets amounts to nearly 147 million cubic feet equivalent per day (MMcfepd), which represents a 13% production increase for Diversified.
Diversified CEO Rusty Hutson, Jr. said: “This purchase strengthens Diversified by further expanding our footprint in our Oklahoma operating area with targeted assets that are a perfect fit for increasing our scale, allowing for synergy capture and providing meaningful opportunities for margin enhancement, that ultimately will grow and bolster our cash flow.
“We are excited to leverage our strategic partnership with Carlyle for funding accretive acquisitions and are pleased with the collective team’s collaboration. This initial transaction serves as an important milestone in our relationship and we look forward to growing our combined portfolio of high quality assets.”
In June 2025, Diversified reported its interim results for the first half of the year. The company recorded an exit rate production of 1,135MMcfepd as of June 2025, with natural gas making up the majority of its production volume mix.
Approximately 64% of the company’s production came from the Central region and 36% from Appalachia.
The partnership between Diversified and Carlyle, which was announced earlier this year, seeks to invest up to $2bn in existing proved developed producing natural gas and oil assets across the US.
Under this agreement, Diversified will assume operational duties while Carlyle will manage structuring and financing opportunities. This partnership is set to enhance Diversified’s access to capital in an attractive acquisition market, allowing for extended portfolio optimisation and reinforcing energy infrastructure investments.
