(World Oil) – Diversified Energy has completed its previously announced acquisition of privately held Canvas Energy, adding a sizeable operated position in central Oklahoma and increasing the company’s daily production by roughly 13%.
The $550 million deal includes operated producing assets and approximately 1.6 million net acres across the state. Diversified said the assets currently produce about 24 MMboed and include an inventory of development locations alongside proved reserves of roughly 200 MMboe with a PV-10 value of about $690 million.
To finance the transaction, Diversified closed a $400 million asset-backed securitization (ABS XI) structured through a master trust and privately rated through Carlyle-managed funds and other co-investors. The “A” tranche notes priced at a blended coupon of 5.97%, supported by an investment-grade rating.
The company expects to capture “meaningful annual run-rate synergies” as it integrates the overlapping positions. Management emphasized that the acquisition expands Diversified’s operational scale in the Midcontinent and provides optionality for future portfolio optimization.
As part of the deal, Diversified issued 3.72 million new shares to former Canvas owners. The shares will trade on the New York Stock Exchange and the London Stock Exchange beginning Nov. 25.
Diversified now has 80.45 million common shares outstanding. The transactions remain subject to standard regulatory and listing procedures.
