Latham & Watkins has advised Diversified Energy (LSE: DEC; NYSE: DEC) on its proposed acquisition of Maverick Natural Resources, a portfolio company of EIG, for a total consideration of approximately US$1.275 billion. The consideration is expected to be satisfied through the issue of shares in Diversified for approximately US$345 million, cash of US$207 million and assumption of outstanding debt of US$700 million. The transaction constitutes a significant transaction under the Listing Rules and is subject to requisite shareholder approval and the publication of a prospectus for admission of the shares issued as consideration.

The acquisition combines two complementary asset packages, pairing high-quality proved developed producing weighted production assets with the lowest corporate decline and capital intensity among peers. The acquisition of Maverick by Diversified adds immediate scale, increases liquids production, and creates a combined company with long-term free cash flow generation, superior unit cash margins, and a compelling sustainability profile.

This is the largest acquisition undertaken by Diversified in recent years. Latham also previously advised Diversified on four acquisitions in 2024, its 2023 NYSE listing, and its step-up to the main market (from AIM) in 2020.

The Latham team was led by London corporate partner James Inness together with partner Richard Butterwick and counsel Koushik Prasad.