Diversified Energy Stock Rises After Deal To Buy Maverick Natural Resources for $1.28B: Retail’s Elated

Diversified Energy (DEC) stock gained in pre-market trade on Monday after the company said it would buy Maverick Natural Resources from private equity firm EIG for $1.28 billion.

The deal, expected to close in the first half of 2025, would increase the share of oil in Diversified Energy’s total energy production mix.

The energy firm said the deal would help nearly double its revenue, and the combined company would have a total production of about 200,000 barrels of oil equivalent per day.

The overwhelming majority of Maverick’s production comes from the Western Anadarko Basin, the Ark-La-Tex region of East Texas, and the largest U.S. shale oilfield Permian Basin.

Over the past one and half years, the Permian has been a focal point of deal activity in the U.S. due to its robust infrastructure and relatively lower production costs.

Diversified Energy said EIG would own 20% of the combined company once the transaction closes.

Rusty Hutson, the CEO of Diversified Energy, will continue to serve in his position after the deal is completed.

“The acquired producing assets have demonstrated leading well performance and are a natural fit with our operating advantage and existing acreage,” Hutson said.

The company said it is liable to pay $50 million in termination fees under certain circumstances.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (96/100) territory from ‘bearish’(36/100) a day ago, while retail chatter remained ‘extremely high’.

Earlier this month, Diversified Energy had agreed to buy some natural gas assets from Summit Natural Resources for $45 million.

Over the past year, the stock has gained 32.5%.

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