Diversified Energy and Carlyle to Buy Camino Oklahoma Gas Assets for $1.175 Billion Using ABS Financing

Diversified Energy Company and Carlyle's asset-backed finance platform agreed on May 6, 2026 to acquire oil and natural gas assets from Camino Natural Resources in the Anadarko Basin of Oklahoma for $1.175 billion. Camino Natural Resources is a Denver-based gas producer backed by NGP Energy Capital Management. The deal is expected to close in the third quarter of 2026, subject to customary closing conditions.

The acquisition adds 51,000 barrels of oil equivalent per day of production, a mix of 55 percent natural gas, 30 percent natural gas liquids, and 15 percent oil. The assets span roughly 101,000 net acres in the SCOOP, STACK, and MERGE play areas of the Anadarko Basin. Proved reserves total approximately 1,478 billion cubic feet equivalent, and the assets carry a projected near-term EBITDA of $397 million per year.

Rusty Hutson Jr., Diversified's chief executive, said the assets are "a perfect fit with our existing Oklahoma operations and offer meaningful opportunities for material synergies upon completion." The deal expands Diversified's pro-forma Oklahoma inventory to more than 450 drill-ready locations. At a one-rig development pace, that inventory represents more than 30 years of runway.

Carlyle's Credit Arm, Not Its Buyout Funds

The financing structure is an asset-backed securitization, or ABS, arranged by Carlyle's Asset-Backed Finance team within its Global Credit platform. This is Carlyle's debt and credit business, distinct from its flagship private equity funds. Carlyle Global Credit's ABS team manages more than $10 billion in assets and has deployed approximately $11 billion since 2021.

Under the structure, a newly formed special purpose vehicle holds the producing assets and issues ABS debt backed by their cash flows. Carlyle holds approximately 60 percent of the SPV; Diversified retains approximately 40 percent. Diversified acts as operator and ABS manager, earning servicing and operating fees, and holds a preferential buyback option on de-levered assets.

Diversified's direct cash outlay is approximately $210 million, drawn from its senior secured revolving credit facility. The balance of the purchase price is funded through the ABS structure. Akhil Bansal, Carlyle's head of asset-backed finance, said the transaction "demonstrates what's possible when structuring expertise and long-term capital are paired with a best-in-class operator."

NGP's Camino: A $2 Billion Valuation That Settled at $1.175 Billion

Camino Natural Resources was founded in 2016 by Ward Polzin, a veteran energy executive who previously co-founded Centennial Resource Development. NGP Energy Capital Management, a Fort Worth-based private equity firm focused on oil and gas, has backed Camino since its founding. Private Equity Wire reported that NGP was exploring a $2 billion full-company sale of Camino before this deal came together.

The $1.175 billion asset package represents roughly 59 percent of that initial $2 billion enterprise valuation. The gap reflects the deal structure (assets only, not the whole company) and the sharp fall in oil prices since NGP began its sale process. After a decade of development under NGP's ownership, Camino's core producing base will transfer to new operators by late 2026.

WTI Decline Tests the Deal's Cash-Flow Assumptions

The deal was announced on May 6, 2026, during the Strait of Hormuz closure when WTI was elevated above $100 per barrel. WTI crude fell to US$75.81 per barrel in Tuesday morning trading per TradingEconomics, down more than 6 percent on the day and roughly 40 percent below the Hormuz-era peak above $125 per barrel. The selloff continued a move that started with the US-Iran ceasefire announcement on June 14.

The oil component represents 15 percent of the 51,000 boe/d production base, or 7,650 barrels per day. Each $10 decline in WTI reduces that segment's gross annual revenue by $27.9 million. The fall from peak Hormuz levels to Tuesday's price reduces gross annual oil revenue from the acquired assets by more than $137 million.

The gas-heavy portfolio provides a partial offset to that pressure. The EIA's June 2026 Short-Term Energy Outlook, published Tuesday, raised its full-year 2026 Henry Hub forecast to $3.60 per MMBtu from the May estimate of $3.50 per MMBtu. Gas accounts for 55 percent of the Camino assets' production, which reduces the portfolio's direct exposure to the WTI decline. An ABS structure backed by well cash flows must service its debt obligations regardless of commodity price movements, so the deal's coverage ratios face a different test at current prices than at those that prevailed at signing.