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Investing.com -- Diversified Energy Company PLC (LSE:DEC) stock rose 4.1% after announcing a strategic partnership with global investment firm Carlyle (NASDAQ:CG) to invest up to $2 billion in natural gas and oil assets across the United States.
The exclusive partnership will combine Carlyle’s credit and structuring expertise with Diversified’s operating capabilities to acquire and optimize portfolios of existing long-life oil and gas assets. Under the agreement, Diversified will serve as the operator and servicer of the newly acquired assets.
The partnership enhances Diversified’s access to capital in what the company describes as an attractive acquisition market. Carlyle intends to pursue opportunities to securitize these assets as investments occur, seeking to unlock long-term financing for this segment of energy infrastructure.
"We are excited to partner with Carlyle, a leader in the asset-backed finance space. 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, noted that Diversified "is a leading operator of long-life energy assets and a pioneer in bringing PDP securitizations to institutional markets."
The companies will focus on proved developed producing (PDP) natural gas and oil assets, which are already producing and generating cash flow. Diversified, which is listed on both the London Stock Exchange (LON:LSEG) and the New York Stock Exchange, specializes in acquiring and optimizing such assets.
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