Diversified Energy Grows Portfolio Through Acquisition of Canvas Energy
Acquisition Overview: Diversified Energy Company (DEC) has completed its acquisition of Canvas Energy for approximately $550 million, enhancing its production capacity by 13% and adding nearly 1.6 million net acres in Central Oklahoma.
Financing Details: The acquisition was financed through a $400 million asset-backed securitization (ABS), featuring an investment-grade tranche with a blended coupon of 5.97%, allowing DEC to maintain financial discipline while expanding its asset base.
Share Issuance: As part of the transaction, DEC issued 3,720,125 new common shares to former Canvas equity holders, increasing the total shares outstanding to 80.4 million, each with one voting right.
Market Position: DEC holds a Zacks Rank #3 (Hold), while other energy stocks like Drilling Tools International, Par Pacific Holdings, and Vista Energy are highlighted as top-ranked investments in the sector.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on DEC
About DEC
About the author
DIVERSIFIED ENERGY CO - TOTAL OUTSTANDING BONDS RISE TO USD 500 MILLION
Diverse Energy Bond Increase: The total outstanding bonds for diversified energy have increased significantly.
Financial Growth: The increase in bonds amounts to approximately $500 million.
Diversified Energy Plans $100 Million Bond Tap Issue
- Investor Meetings: Diversified Energy has mandated DNB Carnegie as the manager and bookrunner to arrange fixed income investor meetings starting January 23, 2026, aimed at attracting potential investors to support its financing plans.
- Bond Issuance Plan: The company plans to issue a minimum of $100 million in senior secured bonds, expected to be due in April 2029, which will provide financial support if market conditions are favorable.
- Clear Use of Proceeds: Should the bond issuance be successful, the net proceeds will be used for general corporate purposes, enhancing the company's financial flexibility and operational capacity to address future market challenges.
- Compliance Statement: The bond issuance will only be offered to qualified institutional buyers and will not be registered in the U.S., ensuring the company adheres to relevant securities laws and minimizes legal risks.
