Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced a $2 billion partnership with US investment group Carlyle, to expand DEC’s footprint in the US gas and oil sector.
Through a strategic partnership, Carlyle’s Asset-Backed Finance (ABF) business will invest up to $2 billion in existing, proven and developed producing assets, to be operated and serviced by DEC.
Carlyle will also pursue opportunities to securitise the assets to support long-term financing, DEC added.
“We are excited to partner with Carlyle, a leader in the asset-backed finance space,” DEC chief executive Rusty Hutson said.
Hutson highlighted that the partnership significantly enhances DEC’s ability to pursue and scale strategic acquisitions.
Moreover, he described the market as “a highly compelling environment for PDP asset consolidation.”
Hutson added: “We continue to see a robust pipeline of opportunities and the growing need for operational scale and efficiency.
“With Carlyle’s support, we are well-positioned to capitalise on these trends while aiming to generate sustainable cash flow and value for our shareholders.”
Akhil Bansal, head of asset-backed finance at Carlyle, meanwhile, described DEC as “a leading operator of long-life energy assets and a pioneer in bringing PDP securitisations to institutional markets”.
“We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to US domestic energy production and energy security,” Bansal said.