Diversified Energy and Carlyle Announce $2 Billion Partnership to Invest in US Natural Gas and Oil Assets

Strategic Insights -

Diversified Energy Company, a leading natural gas and liquids production company, and global investment firm Carlyle have formed a strategic partnership to invest up to $2 billion in proved developed producing (PDP) natural gas and oil assets across the United States. The partnership combines Carlyle's expertise in asset-backed finance with Diversified's market-leading operating capabilities to acquire and optimize portfolios of existing long-life oil and gas assets.

Key Takeaways:

  • The partnership will enable Diversified to pursue and scale strategic acquisitions in the PDP asset consolidation market, with Carlyle providing access to institutional capital.
  • Diversified will serve as the operator and servicer of the acquired assets, while Carlyle will pursue opportunities to securitize these assets and unlock long-term financing for the energy infrastructure.
  • The partnership is a significant step in Carlyle's ability to originate differentiated investment opportunities through proprietary sourcing channels and access stable, yield-oriented energy exposure.
  • Carlyle's Asset-Backed Finance group has deployed approximately $8 billion since 2021 and has approximately $9 billion in assets under management as of March 31.
  • Diversified Energy is a leading operator of long-life energy assets and has a robust pipeline of opportunities for acquisitions and growth.
  • The partnership is expected to enhance Diversified's access to capital in an attractive acquisition market and unlock sustainable cash flow and value for shareholders.

Statistics:

  • The partnership will invest up to $2 billion in existing PDP natural gas and oil assets across the United States.
  • Carlyle's Asset-Backed Finance group has deployed approximately $8 billion since 2021.
  • Carlyle has approximately $9 billion in assets under management as of March 31.
  • Diversified Energy has a robust pipeline of opportunities for acquisitions and growth in the existing PDP asset consolidation market.

Sources:

  • "Diversified Energy and Carlyle Announce Strategic Partnership to Invest in US Natural Gas and Oil Assets"

+ Source: Diversified Energy Company, Carlyle

+ Release Date: Not specified in the source material

  • "Carlyle Global Credit"

+ Source: Carlyle

+ Release Date: Not specified in the source material

  • "Diversified Energy Company"

+ Source: Diversified Energy Company

+ Release Date: Not specified in the source material