Diversified Energy Company PLC (DEC) closed a $550 million purchase of Canvas Energy on November 24, 2025. The deal was financed through a $400 million asset‑backed securitization and the issuance of 3,720,125 new shares to Canvas shareholders. Those shares will trade on the New York Stock Exchange and are slated for admission to the London Stock Exchange on November 25.
The acquisition adds a portfolio of operated producing properties and acreage in Oklahoma, expanding DEC’s presence in the Western Anadarko Basin where it is already the largest leaseholder and top producer. The added assets are expected to lift net production by roughly 13% and bring in high‑margin wells that run at about 70% EBITDA, reinforcing DEC’s strategy of acquiring mature, low‑decline wells.
Financially, the transaction is projected to boost adjusted EBITDA by 18% and free cash flow by 29% once synergies are realized. In the third quarter of 2025, DEC reported total revenue of $500 million and an adjusted EBITDA of $286 million, so the acquisition represents a significant accretion to the company’s earnings base. The expected synergies stem from cost‑sharing in drilling, shared services, and accelerated ramp‑up of the new acreage.
CEO Rusty Hutson Jr. said the deal “strengthens our Oklahoma footprint and enhances our margin profile by adding high‑yield assets.” He added that the integration plan will focus on aligning operating teams and leveraging existing infrastructure to realize the projected 18% EBITDA lift.
Analysts noted that the share issuance could dilute existing shareholders, but they also highlighted the strategic fit and the potential for margin expansion. The acquisition aligns with a broader industry trend toward consolidation, as companies seek scale to weather commodity volatility and regulatory pressures. However, some analysts remain cautious about DEC’s high leverage and declining overall margins, underscoring the importance of disciplined integration.
Overall, the acquisition positions DEC to capture additional production upside while reinforcing its high‑margin portfolio. The transaction’s financing structure and share issuance reflect a balanced approach to capital deployment, aiming to deliver long‑term value to shareholders.
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