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BIRMINGHAM/NEW YORK - Diversified Energy Company PLC (LSE:DEC; NYSE:DEC) and investment firm Carlyle (NASDAQ:CG), a $17 billion market cap alternative asset manager currently trading at a P/E ratio of 15.5, announced today a strategic partnership to invest up to $2 billion in existing proved developed producing natural gas and oil assets across the United States.
Under the agreement, Diversified will operate and service the newly acquired assets, while Carlyle plans to pursue opportunities to securitize these investments. The partnership aims to combine Carlyle’s credit and structuring expertise, backed by impressive revenue growth of 127% in the last twelve months, with Diversified’s operational capabilities in acquiring and optimizing long-life oil and gas assets. According to InvestingPro analysis, Carlyle is currently undervalued with strong growth potential.
"This arrangement significantly enhances our ability to pursue and scale strategic acquisitions in what we believe is a highly compelling environment for PDP asset consolidation," said Rusty Hutson, Jr., CEO of Diversified Energy.
Akhil Bansal, Head of Asset-Backed Finance at Carlyle, stated, "We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to US domestic energy production and energy security."
Carlyle’s Asset-Backed Finance group, part of its Global Credit platform, has deployed approximately $8 billion since 2021 and manages approximately $9 billion in assets as of March 31, 2025.
Diversified Energy focuses on natural gas and liquids production, transport, marketing, and well retirement. Carlyle operates through three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest, with $453 billion of assets under management as of March 31, 2025. The company maintains a healthy dividend yield of 2.99% and has received a FAIR financial health score from InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Reports covering 1,400+ top US stocks.
This information is based on a press release statement from both companies.
In other recent news, Carlyle Group has reported record financial results for the first quarter of 2025, with fee-related earnings reaching $311 million, marking a 17% increase year-over-year. The firm also achieved a record distributable earnings of $455 million and assets under management rose to $453 billion, reflecting a 6% growth from the previous year. Analysts at Keefe, Bruyette & Woods have responded to Carlyle’s strong earnings by raising their price target for the company’s shares to $45, up from $43, while maintaining a Market Perform rating. This adjustment follows Carlyle’s earnings report, which surpassed analyst expectations by $0.18, driven by higher fee-related earnings and successful fundraising efforts.
Additionally, Goldman Sachs has maintained a Buy rating on Carlyle Group with a price target of $51.75, expressing optimism about the company’s strategic growth initiatives. These initiatives are expected to drive significant growth in Carlyle’s Fee-Related Revenues between 2025 and 2027. Despite macroeconomic challenges, Carlyle’s valuation is noted to be approximately 50% below the average of its peers, presenting a potential opportunity for valuation improvement. Carlyle Group’s strategic focus on areas such as Retail, Secondaries, Credit, and Capital Markets is anticipated to contribute to an estimated 11% or higher organic Fee-Related Revenue compound annual growth rate through 2027. These recent developments highlight Carlyle Group’s robust financial performance and strategic positioning in the market.
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