Diversified Energy and Carlyle partner to invest up to $2B in energy assets

Published 24/06/2025, 07:10
Diversified Energy and Carlyle partner to invest up to $2B in energy assets

BIRMINGHAM, Ala. and NEW YORK - Diversified Energy Company PLC (LSE:DEC; NYSE:DEC) and Carlyle (NASDAQ:CG) announced Tuesday 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 will provide financing expertise through its asset-backed finance team. The partnership aims to acquire long-life oil and gas assets that can generate consistent cash flow.

Carlyle plans to pursue opportunities to securitize these assets as investments occur, seeking to establish long-term financing for this segment of energy infrastructure.

"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, in the press release statement.

Akhil Bansal, Head of Asset-Backed Finance at Carlyle, stated the partnership "underscores Carlyle’s ability to originate differentiated investment opportunities through proprietary sourcing channels."

Carlyle’s Asset-Backed Finance group operates within its Global Credit platform and has deployed approximately $8 billion since 2021. The group currently manages about $9 billion in assets as of March 31, 2025.

Diversified Energy focuses on acquiring existing natural gas and liquids production assets, improving their environmental and operational performance before eventual retirement. Carlyle manages $453 billion of assets as of March 31, 2025, and employs over 2,300 people across 29 offices worldwide.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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