Diversified Energy and Carlyle Forge a Strategic Alliance
BIRMINGHAM, Ala. and NEW YORK — Diversified Energy Company PLC (LSE: DEC; NYSE: DEC), a significant player in the production of natural gas and liquids, has announced a powerful partnership with Carlyle (NASDAQ: CG), a prominent global investment firm. This collaboration focuses on investing up to $2 billion in proven developed producing (PDP) energy assets spread across the United States.
Leveraging Combined Expertise for Growth
This strategic partnership combines Carlyle’s extensive credit knowledge and structuring capabilities, particularly through its asset-backed finance (ABF) team, with Diversified’s established operational expertise. Diversified has a well-known track record of acquiring and enhancing existing long-life oil and gas assets to secure reliable production and maximize cash flow.
Capital Access in a Thriving Market
The collaboration significantly improves Diversified's access to investor capital, especially in an appealing acquisition landscape. As these investments progress, Carlyle aims to explore ways to securitize the assets, aiming to provide long-lasting and stable financing options for essential segments of the nation's energy infrastructure.
CEO Insights on the New Partnership
Rusty Hutson, Jr., CEO of Diversified Energy, expressed his enthusiasm about the partnership, stating, “We are thrilled to join forces with Carlyle, a recognized leader in the asset-backed finance realm. This collaboration greatly bolsters our capacity to engage in and expand strategic acquisitions, particularly in a compelling market for PDP asset consolidation. There is a strong pipeline of opportunities awaiting us, and we are eager to leverage this with Carlyle’s support to create sustainable cash flow and drive shareholder value.”
Expert View on Diversified's Role
Akhil Bansal, the Head of Asset-Backed Finance at Carlyle, noted the strategic significance of this partnership. He said, “Diversified is pivotal in managing long-life energy assets and has been instrumental in introducing PDP securitizations to institutional investors. We are excited to channel institutional capital into high-quality, cash-generating energy assets that are fundamental to US domestic energy production and energy security.”
Carlyle’s Investment Approach and Achievements
Carlyle Asset-Backed Finance (Carlyle ABF) operates under Carlyle’s Global Credit platform, focusing on private fixed income and asset-backed investments. The team's extensive experience and access to the broader Carlyle investment platform result in innovative asset-focused financing solutions for businesses and asset managers. Since 2021, Carlyle ABF has deployed approximately $8 billion and currently manages around $9 billion in assets as of the end of the first quarter of 2025.
A Closer Look at Diversified Energy's Vision
Diversified Energy Company PLC is dedicated to the responsible production and management of natural gas and liquids. The company prioritizes environmental and operational performance, ensuring a safe and secure retirement of assets. With strong recognition from ratings agencies for its sustainability leadership, Diversified’s strategic approach is timely and vital for delivering reliable free cash flow while enhancing shareholder value.
Carlyle’s Broader Strategic Investments
Carlyle, with its extensive experience in private equity, credit, and investments through various sectors, is committed to deploying effectively and creating value on behalf of its investors and communities. As of March 31, 2025, Carlyle manages $453 billion in assets, reflecting its strong market presence and operational capabilities across 29 offices in four continents.
Contact Details for Stakeholders
Diversified Energy Company PLC
Doug Kris
Senior Vice President, Investor Relations & Corporate Communications
(973) 856 2757
dkris@dgoc.com
Carlyle
Kristen Ashton
Corporate Communications
(212) 813-4763
Kristen.ashton@carlyle.com
Frequently Asked Questions
What is the purpose of the partnership between Diversified Energy and Carlyle?
The partnership aims to invest up to $2 billion in PDP energy assets, enhancing production and cash flow strategies.
What experience does Carlyle bring to this partnership?
Carlyle brings deep credit and structuring expertise, crucial for optimizing the financial performance of energy assets.
How will Diversified Energy manage the newly acquired assets?
Diversified Energy will operate and service the new assets acquired through the partnership, applying its operational excellence.
What are some recent achievements of Carlyle's Asset-Backed Finance group?
The Carlyle ABF group has deployed around $8 billion since 2021 and currently manages approximately $9 billion in assets.
Why is this partnership significant for US energy production?
This collaboration enhances capital access for acquiring essential energy assets, thus supporting stability in US energy infrastructure.
