Diversified Energy Corp. is set to acquire Maverick Natural Resources in a nearly $1.3 billion deal, a move that company officials say will enhance its asset base, commodity mix, and operational scale.
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The $1.275 billion acquisition, which will combine Diversified Energy Co.'s proved developed producing-weighted assets with Maverick’s liquid-rich portfolio, is expected to increase Diversified’s revenue by 95% and significantly expand the company’s footprint across the eastern and Midwest United States.
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“This acquisition expands our unique and highly focused energy production company with a complementary portfolio of attractive, high-quality assets,†Diversified Energy CEO Rusty Hutson said. “We have a proven track record of unlocking value from acquisitions while maintaining our commitment to sustainability leadership, and this acquisition provides us with great assets and employees that complement this strategy.
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“The acquired producing assets have demonstrated leading well performance and are a natural fit with our operating advantage and existing acreage. Notably, the combined footprint in Oklahoma and the Western Anadarko Basin creates one of the largest in terms of production and acreage, which includes the emerging Cherokee formation.â€
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The deal includes $700 million in assumed debt, $345 million in Diversified ordinary shares, and $207 million in cash.
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The transaction boosts Diversified’s production base to approximately 1,200 million cubic feet equivalent per day (~200,000 barrels of oil equivalent per day) and expands its presence in the Permian Basin.
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Diversified plans to leverage Maverick’s technical expertise and low-risk development opportunities while maintaining its commitment to responsible energy production and free cash flow generation. The acquisition strengthens Diversified’s hedging program and positions the company for long-term resilience in fluctuating markets.
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Upon closing, Diversified’s board of directors will consist of eight members—six from the current Diversified board and two designated by EIG, of which Maverick is a portfolio company.
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The acquisition is expected to close in the first half of 2025. The combined company will have an enterprise value of approximately $3.8 billion at the time of signing.
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“Diversified anticipates benefiting from additional capital investment optionality for organic cash flow generation from joint venture partnerships that continue to optimize our combined high-quality asset base,†Hutson said. “We plan to leverage Maverick's experienced technical asset development team to unlock undeveloped acreage potential through an even larger combined footprint. I am confident that Diversified's management team will bring its expertise in efficiently integrating acquisitions to further expand our Smarter Asset Management practices.â€
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Maverick Natural Resources CEO Rick Gideon called the merger an “important milestone†for Maverick, adding that he has great respect for Diversified’s “innovative approach and stewardship.â€
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“Maverick has built a strong foundation of execution and efficiency across our portfolio, and we look forward to combining our complementary portfolio of assets with Diversified,†Gideon said. “I would also like to express my gratitude to the team at Maverick for their hard work and dedication in supporting our strategic efforts and contributing to this achievement.â€
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The combined company is expected to generate substantial free cash flow and implement strategic initiatives such as disciplined debt reduction to enhance shareholder value—a prospect Hutson said he finds particularly exciting.
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“Diversified shareholders will share in the significant upside potential of the combined company, with its cash flow projected to provide durable and consistent returns while enabling significant debt reduction, further enhancing our long-term value creation proposition,†Hutson said. “We view commodity, geography, asset, and business segment diversification as strategic advantages that drive more resilient and consistent free cash flow and long-term value creation for our combined company.â€
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EIG Managing Director and Head of Domestic Traditional Energy Jeannie Powers said she is also optimistic about the benefits the merger will bring.
“We are extremely pleased to have entered into this acquisition and look forward to contributing as a core shareholder,†Powers said. “We aim to work closely with the Diversified management team and board to support the company's focus on delivering long-term value.
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“Diversified is uniquely positioned in the upstream space with a differentiated business model and a history of operational excellence. The combination of Maverick's assets with Diversified's existing footprint represents a strategic opportunity that we believe can support value creation for all stakeholders.â€
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Hutson said the acquisition sets the stage for a strong 2025 for Diversified Energy and that he and his team look forward to further cementing the company as a premier energy producer in the United States.
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“We have created a strong platform of people and financial resources to build and operate an organization that continues to be the ‘right company at the right time’ to responsibly produce American energy, deliver reliable free cash flow, and drive shareholder value,†he said.
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