Diversified Energy, Carlyle partner in $1.175-billion acquisition in Oklahoma's Anadarko basin

Diversified Energy Co., in partnership with investment firm Carlyle, have agreed to acquire a portfolio of oil and natural gas properties and related assets in the Anadarko basin of Oklahoma from Camino Natural Resources, Denver, for $1.175 billion.

The assets are contiguous with Diversified's existing Oklahoma assets, creating “an immediate line of sight to future operating efficiencies and general and administrative savings,” the company said in a release May 6.

The acquisition is expected to add about 300 MMcfed (51,000 boe/d) of production (about 55% gas, 30% NGLs, 15% oil) for the next 12 and about 1,478 bcfe of reserves.

The assets include an approximate 101,000 acres in the SCOOP/STACK/MERGE with over 100 identified, drill-ready locations in an active development area, the company continued.

Camino will retain its ownership of the Chickasha development area.

The deal will be financed through a bespoke asset-backed securitization (ABS) structured and arranged by Carlyle. A new special purpose vehicle (SPV) will hold the producing assets and issue debt backed by underlying cash flows. Carlyle will hold majority ownership interest in the SPV that issues the ABS, with Diversified serving as asset operator and manager of the ABS. Diversified will retain ownership of the undeveloped assets outside the SPV. Diversified will fund a net amount, inclusive of customary purchase price adjustments, of about $210 million for the acquisition through its senior secured bank facility.

The deal is expected to close in this year’s third quarter, subject to customary conditions.