Diversified Energy Company (DEC), in partnership with Carlyle, has completed the acquisition of oil and natural gas assets in Oklahoma from affiliates of Camino Natural Resources, LLC for approximately $1.175 billion. A significant portion of the acquisition was financed through a joint-venture entity that issued $895 million in asset-backed securities (ABS).
Key Details
- Acquisition: The transaction includes developed and undeveloped oil and gas assets in Oklahoma for an aggregate purchase price of ~$1.175 billion, as first announced on May 6, 2026.
- Financing Structure: The purchase was funded via an $895 million ABS offering, a 60% cash contribution from Carlyle for the developed assets, and borrowings under DEC's revolving credit facility.
- Partnership & Asset Split: The acquired developed assets are held by a special purpose vehicle (DP Eagle LLC), which is owned 60% by Carlyle and 40% by DEC. DEC's subsidiary retains 100% ownership of the undeveloped assets.
- Asset-Backed Securities (ABS): The $895 million offering, issued on July 2, 2026, consists of three tranches of notes with fixed-rate coupons ranging from 6.071% to 10.330%. The notes have an anticipated repayment date of July 2031 and are secured by the acquired producing assets.