Diversified Energy to buy Canvas Energy in $550M deal, adding Oklahoma acreage

[Fracking Drill Rig at Sunset]
sasacvetkovic33/E+ via Getty Images

Diversified Energy (NYSE:DEC [https://seekingalpha.com/symbol/DEC]) said post-market Monday it agreed to acquire [https://seekingalpha.com/pr/20225061-diversified-energy-expanding-leadership-position-in-oklahoma-with-accretive-acquisition-of] privately-held Oklahoma operator Canvas Energy for ~$550M in cash and stock, expanding its central Anadarko Basin portfolio.

Diversified (NYSE:DEC [https://seekingalpha.com/symbol/DEC]) said the acquisition will be funded through a combination of the issuance of ~3.4M new shares direct to the seller, with the balance in cash from existing liquidity under the company's borrowing capacity.

The company said current net production from the Canvas assets is ~24K boe/day (43% natural gas, 57% liquids), which includes about ~23 wells that have been turned to sales in the last 12 months; the deal also included "commercially attractive undeveloped acreage with meaningful development locations."

The acquisition also results in operational overlap in central Oklahoma, with a combined 1.6M net acres, the company said.

Canvas Energy rebranded in 2022 from Chaparral Energy, which completed a financial restructuring and emerged from Chapter 11 as a private company.

MORE ON DIVERSIFIED ENERGY

* Next LVL Of Diversified Energy: Turning ARO Risk Into Opportunity (Rating Upgrade) [https://seekingalpha.com/article/4815514-next-lvl-of-diversified-energy-turning-aro-risk-into-opportunity]
* Diversified Energy's Next Growth Strategy Is Targeting The Data Center Power Market (Rating Upgrade) [https://seekingalpha.com/article/4798218-diversified-energys-next-growth-strategy-targeting-data-center-power-market]
* Diversified Energy Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4812221-diversified-energy-company-plc-2025-q2-results-earnings-call-presentation]