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Energy industries

Diversified Energy Secures Up to GBP2 Billion from Carlyle Group for PDP Assets

Strategic Insights

— 2 min read

Diversified Energy Co PLC, a Birmingham, Alabama-based energy company, has announced a deal with Carlyle Group Inc for an investment worth up to GBP2 billion in proved developed producing - or PDP - oil and gas assets. The Washington, DC-based private equity firm will invest in these assets, which were recently acquired by Diversified Energy in the US. The cash injection from Carlyle will enable Diversified Energy to operate and service these newly-acquired projects, while Carlyle plans to securitize these assets over time. This deal is expected to "unlock long-term, resilient financing for this critical segment of the nation's energy infrastructure" and will allow Diversified Energy to pursue and scale strategic acquisitions in the PDP asset consolidation market.

Key Takeaways:

  • Diversified Energy Co PLC has secured an investment worth up to GBP2 billion from Carlyle Group Inc for PDP oil and gas assets.
  • Carlyle Group will invest in the assets, which were recently acquired by Diversified Energy in the US.
  • The cash injection from Carlyle will enable Diversified Energy to operate and service the newly-acquired projects.
  • Carlyle plans to securitize these assets over time, allowing Diversified Energy to focus on strategic acquisitions.
  • Diversified Energy follows an acquire-and-improve model, buying up existing long-life fuel projects and optimizing production for consistent cash flow.
  • The deal is expected to "unlock long-term, resilient financing for this critical segment of the nation's energy infrastructure".
  • Diversified Energy CEO Rusty Hutson has stated that the deal will significantly enhance the company's ability to pursue and scale strategic acquisitions in the PDP asset consolidation market.
  • Carlyle's head of Asset-Backed Finance, Akhil Bansal, has noted that Diversified Energy is a leading operator of long-life energy assets and a pioneer in bringing PDP securitisations to institutional markets.

Statistics:

  • The investment is worth up to GBP2 billion.
  • Since 2021, Carlyle's Asset-Backed Finance division has paid out around USD8 billion.
  • At March 31, Carlyle's Asset-Backed Finance division has assets under management estimated at USD9 billion.
  • Diversified Energy shares were 1.6% lower at 1,089.99 pence on Tuesday morning in London.
  • Carlyle shares were 0.4% higher at USD47.40 in pre-market dealings in New York.

Sources:

  • "Diversified Energy Co PLC has secured an investment worth up to GBP2 billion from Carlyle Group Inc for PDP oil and gas assets." (Alliance News)
  • "The cash injection from Carlyle will enable Diversified Energy to operate and service the newly-acquired projects." (Alliance News)
  • "Carlyle plans to securitize these assets over time." (Alliance News)
  • "Diversified Energy follows an acquire-and-improve model, buying up existing long-life fuel projects and optimizing production for consistent cash flow." (Alliance News)
  • "The deal is expected to 'unlock long-term, resilient financing for this critical segment of the nation's energy infrastructure'." (Alliance News)
  • "Diversified Energy CEO Rusty Hutson has stated that the deal will significantly enhance the company's ability to pursue and scale strategic acquisitions in the PDP asset consolidation market." (Alliance News)
  • "Carlyle's head of Asset-Backed Finance, Akhil Bansal, has noted that Diversified Energy is a leading operator of long-life energy assets and a pioneer in bringing PDP securitisations to institutional markets." (Alliance News)

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