Oklahoma, September 10, 2025
News Summary
Diversified Energy, based in Birmingham, has announced the acquisition of Canvas Energy for $550 million. This deal includes 23 revenue-generating wells and enhances Diversified’s portfolio in Oklahoma. The acquisition aligns with their strategy to expand long-life assets and improve operational capabilities, supported financially by Carlyle. Expected to close in Q4 2025, this strategic move promises significant benefits for its shareholders.
Birmingham’s Diversified Energy Expands with New Acquisition in Oklahoma
In an exciting development for the energy sector, Diversified Energy, based in Birmingham, has announced its plans to acquire Canvas Energy, an Oklahoma-based company, for a whopping $550 million. This strategic move will significantly bolster Diversified’s existing holdings in Oklahoma and enhance its operational capabilities in the region.
Details of the Acquisition
As part of the deal, Diversified will take over 23 high-quality wells that have been actively generating revenue for the past year. This acquisition aligns with Diversified’s focus on oil and natural gas operations. The firm, formerly known as Diversified Oil & Gas, is dedicated to various aspects of the energy sector, including transport, marketing, and well retirement.
Canvas Energy Inc., headquartered in Oklahoma City, is well-regarded as a private oil and natural gas exploration and production company. As of June 2025, the company had gross assets valued at about $689 million and reported revenue of $304 million for the previous year. With such solid financials, this acquisition is poised to strengthen Diversified’s position in the oil and gas market.
Growth and Strategy
One of the primary goals behind this acquisition is to expand Diversified’s portfolio of long-life assets, which continually generate revenue until their retirement. Earlier this year, Diversified entered a partnership with Carlyle, aimed at investing up to $2 billion in oil and natural gas assets across the United States, demonstrating its commitment to growth and sustainability.
This acquisition follows last year’s successful buyout of Texas’ Maverick Natural Resources, which enabled Diversified to assemble a diversified asset base worth an impressive $3.8 billion. After closing the Canvas Energy deal, Diversified’s holdings in central Oklahoma will increase to approximately 1.6 million net acres. This will significantly enhance the company’s geographical footprint and operational capabilities.
Financial Implications
The acquisition is not only strategic but is also expected to boost Diversified’s adjusted EBITDA and free cash flow, solidifying its financial foundation moving forward. The financing for this deal will come from a variety of sources, including cash reserves and asset-backed securitization provided by Carlyle, which could total up to $400 million.
Looking Ahead
The expected closing date for this acquisition is set for the fourth quarter of 2025, and it promises to deliver substantial synergies and optimization opportunities. Following the deal, it’s anticipated that Diversified will gain operational efficiencies that will further enhance shareholder value.
The board of Diversified has deemed this acquisition beneficial for its shareholders, illustrating a clear focus on long-term growth and profitability. With the backing of Carlyle’s financial assistance and newly acquired assets, Diversified is positioning itself as a formidable player in the oil and gas market.
Frequently Asked Questions (FAQ)
What is the total value of the acquisition between Diversified Energy and Canvas Energy?
The acquisition is valued at $550 million.
How many wells will Diversified Energy acquire from Canvas Energy?
Diversified Energy will acquire 23 high-quality wells that have been in operation during the past year.
How will the acquisition be financed?
The acquisition will be financed through a combination of cash on hand and asset-backed securitization, with Carlyle potentially providing up to $400 million.
When is the expected closing date for this acquisition?
The expected closing date for the acquisition is in the fourth quarter of 2025.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquisition Value | $550 million |
| Wells Acquired | 23 high-quality wells |
| Total Hold in Oklahoma | 1.6 million net acres |
| Asset Backing | Carlyle financing support up to $400 million |
| Expected Closing Date | Q4 2025 |
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Additional Resources
- AL.com: Alabama-Based Energy Company Announces $550 Million Acquisition
- GlobeNewswire: Diversified Energy Expanding Leadership Position in Oklahoma
- Investing.com: Diversified Energy Maintains Growth with Strong Q1 Results
- Wikipedia: Diversified Energy Company
- Google Search: Diversified Energy Company
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
