Diversified Energy's $1.27bn Acquisition of Maverick Natural Resources Announced

Diversified Energy has signed a definitive merger agreement with Maverick Natural Resources to acquire it for approximately $1.27 billion. This strategic acquisition is expected to broaden Diversified Energy's asset base, add diversity to its commodity mix, and advance its footprint across high-return basins. The merger will significantly improve Diversified's trading liquidity and access to capital markets. The combined company will have an anticipated enterprise value of $3.8 billion and operate across five regions, producing about 1.2 billion cubic feet per day of natural gas equivalent. Maverick brings a more balanced commodity mix to the table, which complements Diversified's existing portfolio. Financial arrangements for the acquisition include the issuance of new shares, assumption of Maverick's debt, and a considerable cash component. EIG, the previous owner of Maverick, will hold a 20% stake in Diversified post-acquisition. The deal is backed by a secured $900 million credit facility, and is expected to close in the first half of 2025. The acquisition will reinforce Diversified's position as a leader in sustainable energy production, as highlighted by its CEO Rusty Hutson, Jr. Notable advisors in the transaction include Citi, Truist, Stifel for Diversified and Jefferies Securities, Kirkland & Ellis for Maverick.