Diversified Energy launches strategic partnership with Carlyle

(Sharecast News) - Oil and gas production firm Diversified Energy and global investment firm Carlyle announced a strategic partnership on Tuesday that will see the pair invest up to $2.0bn across the United States. Diversified Energy said the exclusive partnership will combine Carlyle's "deep credit and structuring expertise", led by its asset-backed finance team, with Diversified's "market-leading operating capabilities" and differentiated business model.

The FTSE 250-listed firm stated partnership would enhance its access to capital in "an attractive acquisition market". Under the terms of the agreement, Diversified will serve as the operator and servicer of the newly acquired assets. As investments occur, Carlyle intends to pursue opportunities to securitise the assets.

"We are excited to partner with Carlyle, a leader in the asset-backed finance space. This arrangement significantly enhances our ability to pursue and scale strategic acquisitions in what we believe is a highly compelling environment for PDP asset consolidation," said Diversifed Energy CEO Rusty Hutson Jr.

"We continue to see a robust pipeline of opportunities and the growing need for operational scale and efficiency. With Carlyle's support, we are well-positioned to capitalise on these trends while aiming to generate sustainable cash flow and value for our shareholders."

As of 0815 BST, Diversified Energy shares were down 2.35% at 1,082.0p.

Reporting by Iain Gilbert at Sharecast.com