Diversified Energy to add Oklahoma acreage with Canvas Energy deal
Key Highlights
- Diversified Energy's $550-million deal to acquire Canvas Energy adds to Diversified's Oklahoma portfolio.
- Canvas Energy's current net production is about 147 MMcfed.
- The deal is expected to close in fourth-quarter 2025.
Diversified Energy Co. has agreed to acquire Canvas Energy Inc., a private oil and natural gas exploration and production company, for $550 million.
Diversified said in a release Sept. 8 that the deal adds ‘complementary’ operated producing properties and acreage positions in the Central Anadarko basin in Oklahoma, concentrated in Major, Kingfisher, and Canadian Counties. The assets carry an average working interest of about 79%, including 3,171 net mineral acres.
Canvas Energy, headquartered in Oklahoma City, rebranded in 2022 from Chaparral Energy Inc. As Chaparral Energy, the company completed a financial restructuring and emerged from Chapter 11 as a private, non-SEC filing company (OGJ Online, Aug. 17, 2020).
Current net production from the assets is about 147 MMcfed (24,000 boe/d - 43% natural gas, 57% liquids), which includes about 23 wells that have been turned to sales in the last 12 months. Also included is “commercially attractive undeveloped acreage with meaningful development locations,” Diversified said.
Overall, the acquisition results in operational overlap in central Oklahoma, with a combined 1.6 million net acres, the company said.
The deal is expected to close in this year’s fourth quarter.