Carlyle Group is partnering with Diversified Energy to acquire roughly $1.2bn of oil and gas fields in Oklahoma from Camino Natural Resources. The deal, expected to close in the third quarter, will be financed through an asset-backed securitisation engineered by Carlyle. The arrangement lets the Birmingham-based energy company scale production capacity without adding debt to its corporate balance sheet or diluting equity.

Rusty Hutson, CEO of Diversified Energy, said the financing model allows the New York- and London-listed company to replicate this approach for future acquisitions across its existing basins in Louisiana and Texas. Diversified focuses on acquiring already-drilled producing wells and operates them for their lifetime, claiming operational efficiency improvements in mature assets.

The transaction reflects broader trends as US oil and gas producers increasingly turn to asset securitisation to fund growth amid surging power demand from AI usage. Investors are protected from commodity price swings through hedges, with about 80% of oil and gas revenue typically hedged. The debt, expected to receive an investment-grade rating, will yield mid- to high-single-digit returns for institutional investors.

Critics have raised environmental concerns about delaying retirement of aging wells, though supporters argue the model provides stable energy infrastructure. Carlyle will hold majority ownership of the special-purpose vehicle issuing the debt, with Truist Securities and Citigroup advising Diversified Energy.