⚡️Diversified Energy acquires Canvas for $550M as crude climbs past $63 on geopolitical tensions | Energy Sector Insights
Diversified Energy Co. PLC announced a $550 million acquisition of Canvas Energy, adding 147 MMcfe/d in Oklahoma production alongside reserves valued near $690 million. Meanwhile, crude prices surged above $63 per barrel after an Israeli strike in Qatar.
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Tuesday, September 9
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Diversified Energy Co. PLC announced a $550 million acquisition of Canvas Energy, aimed at enhancing its Oklahoma operations. This deal is projected to boost production by 13%, increase adjusted EBITDA by 18%, and free cash flow by 29%. Canvas currently produces approximately 147 million cubic feet equivalent per day, with reserves valued at nearly $690 million. The acquisition includes 23 recently completed wells and acreage with future development potential. Crude oil prices have risen today, surpassing $63 per barrel amid escalating geopolitical tensions following an Israeli military strike on Hamas in Qatar. Ongoing concerns about potential Western sanctions against Russia are also contributing to upward pressure on crude pricing. In social media discussions, a rotation in the energy sector was noted, with mentions of positive flows into energy stocks throughout October. Valero Energy shares reached a 52-week high before a subsequent drop, but are expected to receive financial support from California for refinery maintenance costs.