Diversified Energy confirms discussions to acquire Birch Resources

Diversified Energy Co on Friday confirmed it has been in talks for a possible acquisition of Birch Resources LLC, an exploration & production company targeting the Permian Basin.

In response to "media speculation regarding a potential transaction", the Birmingham, Alabama-based oil and gas producer, which operates in the US, noted that discussions are still in the early stages, with no certainty that a deal will materialise.

Birch Resources, based in Houston, Texas, is currently privately owned. Bloomberg reported on Thursday that Diversified was approaching a deal to acquire Birch.

Alongside Birch, oil majors Chevron Corp and Exxon Mobil Corp have assets in the Permian basin, which spans parts of Texas and New Mexico.

"Diversified has an acquisition strategy driven by discipline, focus, skill, and precision. The company has made 35 acquisitions totalling over USD7 billion of value since its IPO in 2017. Acquisitions are a core aspect of the company's strategy, and the company regularly engages in preliminary discussions with potential counterparties in this regard," Diversified said.

The company's shares were down 0.9% to 1,052.28 pence each on Friday morning in London. It has a £831.0 million market capitalisation.

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