Strategic Partnership Announcement
Diversified Energy Company PLC (LSE: DEC; NYSE: DEC), a key player in the natural gas and liquids production sector, has joined forces with private equity powerhouse Carlyle (NASDAQ: CG). This collaboration involves an investment of up to $2 billion, focusing on proved developed producing (PDP) natural gas and oil assets throughout the country. This strategic alliance stands to significantly bolster both companies' positions in a rapidly evolving energy landscape.
Enhancing Financial Access
The collaborative endeavor combines Carlyle's distinguished expertise in asset-backed finance with Diversified's operational strengths. Carlyle's deep credit and strategic capabilities will support Diversified's ambition to acquire and optimize long-life oil and gas assets. The agreement allows Diversified to operate and manage the newly acquired assets, which positions them favorably within an appealing acquisition framework.
Unlocking Financing Opportunities
With plans to securitize these energy assets, Carlyle aims to create long-term, resilient financing options for this pivotal segment of the nation's energy sector. As the demand for energy consistency rises, exploring these opportunities is crucial in securing the future of domestic energy production.
Leadership Perspectives
Rusty Hutson, Jr., CEO of Diversified Energy, expressed enthusiasm about the partnership, stating that it enhances their acquisition capabilities in a favorable market. He highlighted the importance of operational scale and efficiency in supporting sustainable cash flow and shareholder value. This partnership exemplifies their commitment to leveraging strategic alliances to navigate market trends efficiently.
Quality and Innovation in Energy
Akhil Bansal, head of Carlyle's Asset-Backed Finance division, emphasized Diversified’s pioneering role in the energy sector, particularly in bringing PDP securitizations to institutional markets. The partnership is seen as a method to channel institutional capital into high-yielding energy assets. This approach is expected to strengthen the framework of U.S. energy production while ensuring energy security.
About Diversified Energy Company PLC
Diversified Energy stands out as a publicly traded energy entity dedicated to natural gas and liquid production. The company’s strategy encompasses acquiring long-life assets and investing in them to enhance performance and sustainability. Their commitment to environmental responsibility and operational excellence positions them as a leader in the energy industry, driving innovation in reliable energy production and value generation.
About Carlyle
Carlyle is a global investment firm known for its deep industry knowledge and diversified capital deployment. Their business segments, including Global Private Equity and Global Credit, enable Carlyle to engage effectively across various markets. With assets under management totaling approximately $453 billion, Carlyle is dedicated to creating value for investors and the communities they serve, showcasing its operational strength across multiple geographies.
Media Contact Information
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 focus of the new partnership?
The partnership focuses on investing in up to $2 billion in PDP natural gas and oil assets across the United States.
Who are the main players in this partnership?
Diversified Energy Company PLC and Carlyle are the two primary entities involved in this strategic partnership.
How will the partnership benefit Diversified Energy?
This partnership will enhance Diversified’s financial access for making significant acquisitions, promoting growth in their operations.
What is Carlyle’s role in this partnership?
Carlyle provides asset-backed finance expertise to support Diversified in optimizing their acquisitions and pursuing additional financing opportunities.
What are the long-term goals of this alliance?
The alliance aims to create sustainable cash flow, enhance shareholder value, and solidify the operational scale within the energy sector.
