Diversified Energy has agreed to acquire Houston-based Maverick Natural Resources, a portfolio company of EIG, in a transaction valued at approximately $1.27bn.
The acquisition, which combines complementary asset portfolios, is expected to enhance production capacity, diversify commodity exposure, and position the merged entity for sustainable free cash flow generation.
The transaction involves a mix of cash, equity, and debt assumption.
Diversified Energy will take on approximately $700m of Maverick Natural Resources’ outstanding debt. The former will issue 21.2 million new US dollar-denominated ordinary shares valued at $345m to Maverick Natural Resources’ unitholders, and pay $207m in cash.
Once completed, the combined company will have an enterprise value of approximately $3.8bn. EIG will hold a 20% stake in the enlarged Diversified Energy’s ordinary shares, subject to a customary lock-up agreement.
Maverick Natural Resources specialises in managing mature upstream oil and gas assets, utilising advanced automation and data-driven technologies to optimise efficiency while focusing on environmental sustainability.
The company’s primary assets are concentrated in the hydrocarbon-rich regions of Texas and Oklahoma, spanning the Western Anadarko area, East Texas, and the Permian Basin.
The acquisition complements Diversified Energy’s core operations of producing, transporting, and marketing natural gas and liquids from assets across the US. The deal is expected to strengthen its presence in major basins, including Appalachia, the Permian Basin, the Barnett Shale, the Western Anadarko Basin, and the Ark-La-Tex region.
According to Diversified Energy, the integration of Maverick Natural Resources’ assets is expected to provide significant synergies through operational efficiencies and cost savings.
The deal also introduces new Permian Basin assets, particularly in the Northern Delaware Basin, and expands Diversified Energy’s core acreage in the Western Anadarko Basin, including the Cherokee Play.
Once integrated, the combined company is projected to generate approximately 200 thousand barrels of oil equivalent per day (200Mboe/d) in production.
Completion of the transaction, which is expected in H1 2025, is subject to customary closing conditions, including shareholder and regulatory approvals. Should the transaction fail to proceed under certain conditions, Diversified Energy will be required to pay a $50 million break fee.
Diversified Energy has engaged Citi as its financial and transaction adviser, while additional advisory support is being provided by Truist and Stifel. Legal counsel is being handled by Gibson, Dunn & Crutcher and Latham & Watkins (London).
KeyBanc Capital Markets is leading the debt financing arrangement. For Maverick Natural Resources, its financial adviser is Jefferies Securities, while Kirkland & Ellis is providing legal counsel.
