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Diversified Energy Expands Portfolio With Canvas Energy Acquisition
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Key Takeaways
DEC boosts output by acquiring Canvas assets, delivering 147 MMcfe/d and expanding Oklahoma acreage.
The $550M deal, funded by a $400M ABS issuance, enhances DEC's scale and financial flexibility.
DEC issued 3.7M new shares to Canvas holders, bringing total voting rights to 80.4M shares.
Diversified Energy Company (DEC - Free Report) has officially completed its acquisition of Canvas Energy, adding a sizable set of producing assets and Oklahoma acreage that immediately lifts its scale. The transaction, funded through a new $400 million asset-backed securitization (ABS), marks a strategic step that strengthens both production and long-term optionality.
What the Acquisition Adds
The acquired assets contribute approximately 147 million cubic feet equivalent of natural gas per day to current net production, increasing Diversified’s standalone output by roughly 13%. With a purchase price of around $550 million, the deal values the assets at approximately 3.5 times expected next-twelve-month EBITDA. Diversified also gains nearly 1.6 million net acres in Central Oklahoma, enhancing operational overlap and creating new opportunities for optimization.
Financial Strength and ABS Funding
To finance the acquisition, Diversified utilized a privately rated master-trust ABS structure supported by Carlyle-managed funds and co-investors. The $400 million ABS XI issuance features an investment-grade “A” tranche with a blended coupon of 5.97%, enabling the company to uphold financial discipline while growing its asset base.
Share Issuance and Voting Rights
As part of the transaction, Diversified issued 3,720,125 new common shares to former Canvas equity holders. These shares will trade on the New York Stock Exchange and carry the same rights as existing stock. With this issuance, Diversified now has 80.4 million shares outstanding, each carrying one vote. Therefore, as of Nov. 24, 2025, the total number of voting rights in the company was 80.4 million.
DEC’s Zacks Rank & Key Picks
Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. Currently, DEC has a Zacks Rank #3 (Hold).
Houston-based Drilling Tools International is an oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The Zacks Consensus Estimate for DTI’s 2025 revenues indicates 1.8% year-over-year growth.
Houston-based Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. The Zacks Consensus Estimate for PARR’s 2025 earnings indicates 2170% year-over-year growth.
Vista Energy is a prominent exploration and production company with a significant footprint in Vaca Muerta, which ranks among the largest shale oil and gas resources outside of North America. The Zacks Consensus Estimate for VIST’s 2025 earnings indicates 243.1% year-over-year growth.
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Diversified Energy Expands Portfolio With Canvas Energy Acquisition
Key Takeaways
Diversified Energy Company (DEC - Free Report) has officially completed its acquisition of Canvas Energy, adding a sizable set of producing assets and Oklahoma acreage that immediately lifts its scale. The transaction, funded through a new $400 million asset-backed securitization (ABS), marks a strategic step that strengthens both production and long-term optionality.
What the Acquisition Adds
The acquired assets contribute approximately 147 million cubic feet equivalent of natural gas per day to current net production, increasing Diversified’s standalone output by roughly 13%. With a purchase price of around $550 million, the deal values the assets at approximately 3.5 times expected next-twelve-month EBITDA. Diversified also gains nearly 1.6 million net acres in Central Oklahoma, enhancing operational overlap and creating new opportunities for optimization.
Financial Strength and ABS Funding
To finance the acquisition, Diversified utilized a privately rated master-trust ABS structure supported by Carlyle-managed funds and co-investors. The $400 million ABS XI issuance features an investment-grade “A” tranche with a blended coupon of 5.97%, enabling the company to uphold financial discipline while growing its asset base.
Share Issuance and Voting Rights
As part of the transaction, Diversified issued 3,720,125 new common shares to former Canvas equity holders. These shares will trade on the New York Stock Exchange and carry the same rights as existing stock. With this issuance, Diversified now has 80.4 million shares outstanding, each carrying one vote. Therefore, as of Nov. 24, 2025, the total number of voting rights in the company was 80.4 million.
DEC’s Zacks Rank & Key Picks
Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. Currently, DEC has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Drilling Tools International Corporation (DTI - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Vista Energy, S.A.B. de C.V. (VIST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston-based Drilling Tools International is an oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The Zacks Consensus Estimate for DTI’s 2025 revenues indicates 1.8% year-over-year growth.
Houston-based Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. The Zacks Consensus Estimate for PARR’s 2025 earnings indicates 2170% year-over-year growth.
Vista Energy is a prominent exploration and production company with a significant footprint in Vaca Muerta, which ranks among the largest shale oil and gas resources outside of North America. The Zacks Consensus Estimate for VIST’s 2025 earnings indicates 243.1% year-over-year growth.