In a significant move within the U.S. energy sector, Diversified Energy Company PLC and global investment firm Carlyle have announced a strategic partnership to invest up to $2 billion in existing proved developed producing (PDP) natural gas and oil assets across the United States. This collaboration aims to capitalize on current market dynamics, where many energy companies are divesting mature assets to focus on new developments and debt reduction.
Under the terms of the agreement, Diversified Energy will serve as the operator and servicer of the newly acquired assets. Carlyle, through its Asset-Backed Finance (ABF) group, plans to securitize these assets, unlocking long-term, resilient financing for this critical segment of the nation’s energy infrastructure.
Rusty Hutson Jr., CEO of Diversified Energy, expressed enthusiasm about the partnership, stating, “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.” He emphasized the robust pipeline of opportunities and the growing need for operational scale and efficiency.
Akhil Bansal, Head of Asset-Backed Finance at Carlyle, highlighted the strategic alignment, saying, “Diversified is a leading operator of long-life energy assets and a pioneer in bringing PDP securitizations to institutional markets. We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to U.S. domestic energy production and energy security.”
This partnership follows Diversified Energy’s earlier $1.275 billion acquisition of Maverick Natural Resources, granting it access to the Permian Basin, specifically the northern Delaware Basin. The new collaboration with Carlyle is expected to enable Diversified to grow in current operating basins or expand into new areas like Oklahoma. The focus will be on properties with reliable and consistent output, allowing for production growth with minimal administrative costs.
The energy sector has seen a historic level of mergers and acquisitions over the last 12 to 18 months, with companies focusing on development activity and leveraging their balance sheets. As a result, there’s an abundance of acquisition opportunities, particularly for firms like Diversified that specialize in operating mature assets. The partnership with Carlyle positions Diversified to be disciplined in its approach, ensuring the ability to act swiftly on potential acquisitions.
Carlyle’s Asset-Backed Finance group, part of its Global Credit platform, has deployed approximately $8 billion since 2021 and manages approximately $9 billion in assets as of March 31, 2025. The firm’s strategy focuses on sectors experiencing a scarcity of capital, providing tailored asset-focused financing solutions to businesses and other originators and owners of diversified pools of assets.
The collaboration between Diversified Energy and Carlyle underscores a shared belief in the long-term value of mature, producing energy assets. By combining operational expertise with innovative financing strategies, the partnership aims to play a significant role in the ongoing consolidation and evolution of the U.S. oil and gas industry.
