Diversified Energy Company (GB:DEC)
LSE:DEC
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Diversified Energy Company
(LSE:DEC)
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Rating:63Neutral
Price Target:
1,267.00 p
â–²(3.51% Upside)
Action:ReiteratedDate:12/07/25
Diversified Energy's overall stock score reflects a mix of strong technical indicators and positive earnings call highlights, offset by weak financial performance and valuation concerns. The company's strategic initiatives, including debt reduction and NYSE listing, are positive, but financial instability and market headwinds pose risks.
Positive Factors
Mature-asset operating model
DEC’s core model of buying and operating mature, long-life assets with existing infrastructure leads to lower development capex, predictable decline management, and steadier cash flows. This durable model supports sustainable commodity cash generation and operational predictability over months.
Negative Factors
Substantial absolute net debt
Despite ratio improvement, a large absolute net debt burden leaves the company exposed to commodity cycles and refinancing risk. Meeting targeted annual ~$300M debt paydown and maintaining liquidity are needed to avoid pressure on investment flexibility and to preserve credit optionality over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Mature-asset operating model
DEC’s core model of buying and operating mature, long-life assets with existing infrastructure leads to lower development capex, predictable decline management, and steadier cash flows. This durable model supports sustainable commodity cash generation and operational predictability over months.
Read all positive factors
Diversified Energy Company (DEC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£888.51M
Dividend Yield10.49%
Average Volume (3M)190.43K
Price to Earnings (P/E)3.1
Beta (1Y)0.74
Revenue Growth56.20%
EPS Growth-185.69%
CountryUK
Employees1,589
SectorEnergy
Sector Strength52
IndustryOil & Gas Energy
Share Statistics
EPS (TTM)0.06
Shares Outstanding72,350,750
10 Day Avg. Volume189,417
30 Day Avg. Volume190,431
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.07
Price to Sales (P/S)0.66
P/FCF Ratio3.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,688.01Price Target Upside37.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.21
Revenue Forecast (FY)£1.42B
Diversified Energy Company Business Overview & Revenue Model
Company Description
Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation o...
How the Company Makes Money
DEC generates revenue primarily through the sale and distribution of natural gas. Its key revenue streams include residential and commercial gas sales, transportation and storage services, and utility services provided to a wide range of customers...
Diversified Energy Company Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: record adjusted EBITDA ($956M), strong free cash flow ($440M), material production growth (exit ~1.25 Bcfe/day), successful POP monetizations (~$160–170M in 2025), and continued accretive M&A including the Sheridan bolt-on. The balance sheet has improved (leverage down to 2.3x) and liquidity (~$577M) supports near-term transactions. Key risks include a still-elevated net debt load (~$2.8B), $55M of transaction costs that reduced FCF, dependence on continued successful M&A/integration and variability in POP proceeds, along with broader commodity volatility. Overall, the positives and execution accomplishments significantly outweigh the risks discussed on the call.Positive Updates
Record Adjusted EBITDA and Strong Margins
Total revenue of $1.83 billion and record adjusted EBITDA of $956 million for FY2025, with an adjusted EBITDA margin of 58% (beat guidance).
Negative Updates
Elevated Net Debt and Ongoing Leverage
Net debt remains substantial at ~ $2.8 billion despite improvement; company is targeting a 2.0–2.5x net debt/EBITDA range (currently 2.3x), indicating continued leverage risk and reliance on deleveraging execution.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EBITDA and Strong Margins
Total revenue of $1.83 billion and record adjusted EBITDA of $956 million for FY2025, with an adjusted EBITDA margin of 58% (beat guidance).
Read all positive updates
Company Guidance
The company said it has published full‑year 2026 guidance (prepared on the same metrics as 2025) but noted that the newly announced Sheridan Production acquisition is not included; management explicitly said portfolio‑optimization (POP) cash proceeds of roughly $100 million are expected to be included in 2026 adjusted EBITDA and adjusted free cash flow. For context, 2025 results (which beat guidance) were: total revenue $1.83 billion, adjusted EBITDA $956 million (58% margin), adjusted free cash flow $440 million (after ~$55 million of transaction costs), average production ~1.1 Bcfe/d with a December exit rate of ~1.25 Bcfe/d, net debt ~ $2.8 billion and leverage down to ~2.3x. Looking into 2026, management reiterated a net debt/EBITDA target range of 2.0–2.5x (and expects to continue repaying roughly $300 million of debt annually), confirmed liquidity of about $577 million to fund deals, and highlighted non‑op programs that should help offset declines (non‑op production expected to exit 2026 just over 12,500 BOE/d). Separately the Sheridan deal (expected to close in Q2 2026 and not in guidance) would add ~61 MMcfe/d, ~397 Bcfe of estimated reserves and an expected ~ $52 million of next‑12‑month EBITDA for a ~$245 million purchase price.Diversified Energy Company Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
40
Negative
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.61B | 794.84M | 868.26M | 1.92B | 977.04M |
| Gross Profit | 411.59M | 109.45M | 203.16M | 1.25B | 515.35M |
| EBITDA | 923.82M | 170.18M | 1.36B | -476.50M | -332.69M |
| Net Income | 341.90M | -88.27M | 758.02M | -625.41M | -325.21M |
Balance Sheet | |||||
| Total Assets | 6.17B | 4.00B | 3.47B | 3.83B | 3.49B |
| Cash, Cash Equivalents and Short-Term Investments | 29.70M | 5.99M | 3.75M | 7.33M | 12.56M |
| Total Debt | 236.55M | 1.74B | 1.31B | 1.47B | 1.04B |
| Total Liabilities | 5.17B | 3.54B | 2.88B | 3.97B | 2.83B |
| Stockholders Equity | 984.06M | 452.68M | 585.81M | -152.69M | 647.41M |
Cash Flow | |||||
| Free Cash Flow | 280.02M | 293.56M | 335.88M | 301.69M | 270.01M |
| Operating Cash Flow | 464.62M | 345.66M | 410.13M | 387.76M | 320.18M |
| Investing Cash Flow | -820.17M | -272.92M | -239.37M | -386.46M | -625.87M |
| Financing Cash Flow | 448.40M | -70.51M | -174.34M | -6.54M | 316.87M |
Diversified Energy Company Technical Analysis
Neutral
1224.00
Price Trends
1090.36
Positive
1059.41
Positive
1043.78
Positive
Market Momentum
46.12
Positive
52.55
Neutral
24.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEC, the sentiment is Neutral. The current price of 1224 is below the 20-day moving average (MA) of 1235.00, above the 50-day MA of 1090.36, and above the 200-day MA of 1043.78, indicating a neutral trend. The MACD of 46.12 indicates Positive momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:DEC.
Diversified Energy Company Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.34B | 18.58 | 17.61% | 12.53% | -12.51% | -59.55% | |
76 Outperform | $1.77B | 11.74 | 12.05% | 13.84% | -2.71% | -113.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $2.82B | 54.12 | 1.69% | 8.18% | 1.51% | -78.38% | |
63 Neutral | £888.51M | 3.09 | 40.22% | 10.49% | 56.20% | -185.69% | |
| ― | $211.60M | -675.44 | -20.86% | ― | -99.78% | -103.13% | |
| ― | $1.10B | 13.61 | 944.35% | 7.51% | -14.84% | -16.23% |
* Energy Sector Average
GB:DEC
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Diversified Energy Company Corporate Events
Business Operations and StrategyStock Buyback
Diversified Energy Repurchases 225,000 Shares Under Buyback Programme
Positive
Jan 12, 2026
Diversified Energy Company has repurchased 225,000 shares of its common stock at a volume-weighted average price of $13.64 per share under its previously announced share buyback program, with the shares to be cancelled. Following this cancellation...
Business Operations and StrategyStock Buyback
Diversified Energy Cuts Share Count with Latest Buyback
Positive
Jan 12, 2026
Diversified Energy Company has repurchased 143,851 shares of its common stock on the market at a volume-weighted average price of $13.5071 per share under its previously announced share buyback program, with the transactions executed through Mizuh...
Stock Buyback
Diversified Energy Cancels 144,395 Shares Under Ongoing Buyback Programme
Positive
Jan 9, 2026
Diversified Energy Company has repurchased 144,395 shares of its common stock on the market at a volume-weighted average price of $14.0275 per share under its previously announced share buyback program, with the transaction executed through Mizuho...
Stock Buyback
Diversified Energy Cancels 162,102 Shares Under Ongoing Buyback Programme
Positive
Jan 8, 2026
Diversified Energy Company has repurchased 162,102 shares of its common stock on the market at a volume-weighted average price of $13.5372 per share under its ongoing share buyback program, with the shares set to be cancelled. Following this cance...
Stock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 162,102 Shares Following Buyback
Positive
Jan 7, 2026
Diversified Energy Company has repurchased 162,102 of its own common shares on the market under its previously announced share buyback program, at a volume-weighted average price of $13.9584 per share executed through Mizuho Securities USA. The ac...
Stock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 145,914 Shares Following Buyback, Trimming Share Count to 78.9 Million
Positive
Jan 6, 2026
Diversified Energy Company has repurchased 145,914 shares of its common stock on the open market under its previously announced share buyback program, paying a volume-weighted average price of $14.0956 per share through Mizuho Securities USA. The ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 28,904 Shares After Buyback, Reducing Share Count to 79 Million
Positive
Jan 2, 2026
Diversified Energy Company has repurchased 28,904 shares of its common stock on the market at a volume-weighted average price of $14.3851 per share under its ongoing share buyback program and will cancel the acquired shares. Following this cancell...
Stock Buyback
Diversified Energy Cancels 14,000 Shares After Latest Buyback
Positive
Dec 30, 2025
Diversified Energy Company has repurchased 14,000 shares of its common stock on the market at a volume-weighted average price of $14.2862 per share under its existing share buyback program, with the shares to be cancelled in due course. Following ...
Stock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 54,459 Shares Under Ongoing Buyback Programme
Positive
Dec 29, 2025
Diversified Energy Company has repurchased 54,459 shares of its common stock on the market at a volume-weighted average price of $14.2973 per share under its ongoing share buyback program, with the transaction executed through Mizuho Securities US...
Stock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 55,000 Shares After Buyback, Trimming Share Count
Positive
Dec 24, 2025
Diversified Energy Company has repurchased 54,988 shares of its common stock on the market at a volume-weighted average price of $13.9712 per share under its ongoing share buyback programme, executed through Mizuho Securities USA. The repurchased ...
Stock Buyback
Diversified Energy Cancels 103,367 Shares After Latest Buyback
Positive
Dec 23, 2025
Diversified Energy Company has repurchased 103,367 of its common shares on the open market under its share buyback programme, at a volume‑weighted average price of $13.9938 per share, and plans to cancel all of the acquired stock. Following ...
Stock Buyback
Diversified Energy Cancels 151,859 Shares After Buyback on NYSE
Positive
Dec 22, 2025
Diversified Energy Company has repurchased 151,859 of its common shares on the NYSE at a volume-weighted average price of $13.8798 per share under its previously announced share buyback programme, with the shares to be cancelled. Following this ca...
Stock Buyback
Diversified Energy Cancels 122,657 Shares Under Ongoing Buyback Programme
Positive
Dec 19, 2025
Diversified Energy Company has repurchased 122,657 shares of its common stock on the market at a volume-weighted average price of $13.91 per share under its ongoing share buyback program, with the shares to be cancelled. Following this cancellatio...
Business Operations and StrategyStock Buyback
Diversified Energy Reduces Outstanding Shares with Buyback Program
Positive
Dec 18, 2025
Diversified Energy Company has announced the acquisition of 36,320 shares in alignment with its share buyback program. The purchased shares, acquired at an average price of $13.9528, will be canceled, reducing the total common shares outstanding t...
Business Operations and StrategyStock Buyback
Diversified Energy Executes Share Buyback Program
Positive
Dec 18, 2025
Diversified Energy Company has repurchased 567,604 shares of its common stock at a volume-weighted average price of $13.25 per share as part of its buyback program. Following the cancellation of these shares, the total outstanding shares will be 7...
Business Operations and StrategyStock Buyback
Diversified Energy Executes Share Buyback Program
Positive
Dec 17, 2025
Diversified Energy Company has executed a share buyback program, purchasing 158,447 shares at an average price of $13.7436 per share. The acquired shares will be canceled, reducing the total shares in issue to 80,164,402. This move is part of the ...
Business Operations and StrategyStock BuybackDelistings and Listing Changes
Diversified Energy Company Secures Court Approval for NYSE Listing Transition
Positive
Nov 21, 2025
Diversified Energy Company has received final approval from the High Court of Justice of England and Wales for its scheme of arrangement, which introduces a new Delaware-incorporated company as its parent holding company. This move marks a signifi...
Business Operations and StrategyDelistings and Listing Changes
Diversified Energy Company Announces Prospectus Approval for London Stock Exchange Listing
Positive
Nov 19, 2025
Diversified Energy Company has announced the approval of its prospectus by the Financial Conduct Authority, paving the way for the listing of its ordinary shares on the London Stock Exchange’s main market. This move is expected to enhance th...
Business Operations and StrategyStock Buyback
Diversified Energy Executes Share Buyback to Enhance Shareholder Value
Positive
Nov 12, 2025
Diversified Energy Company PLC has executed a share buyback program, purchasing 30,623 ordinary shares at an average price of $14.4983 per share. This move is part of the company’s ongoing strategy to enhance shareholder value, with the acqu...
Business Operations and StrategyDelistings and Listing Changes
Diversified Energy Announces Approval of Restructuring Scheme
Positive
Nov 10, 2025
Diversified Energy Company PLC announced the successful approval of a UK scheme of arrangement to establish a new Delaware corporation as its parent holding company. The scheme was approved by the requisite majority at both the Court Meeting and t...
Business Operations and StrategyStock Buyback
Diversified Energy Executes Share Buyback to Enhance Shareholder Value
Positive
Nov 6, 2025
Diversified Energy Company PLC announced the purchase of 96,168 Ordinary Shares as part of its share buyback program, with plans to cancel the acquired shares. This move will reduce the total number of shares in issue to 76,756,291, potentially im...
Dividends
Diversified Energy Declares Third Quarter Dividend
Positive
Nov 3, 2025
Diversified Energy Company announced an interim dividend of 29 cents per share for the third quarter of 2025, payable in U.S. dollars with an option for shareholders to elect payment in sterling. This decision reflects the company’s commitme...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Diversified Energy Reports Strong Q3 2025 Results and Raises Financial Guidance
Positive
Nov 3, 2025
Diversified Energy Company reported strong financial results for the third quarter of 2025, driven by increased production and strategic asset optimization. The company achieved record quarterly adjusted EBITDA and free cash flow, improved its lev...
Business Operations and Strategy
Diversified Energy Achieves Gold Standard in Methane Reduction Commitment
Positive
Oct 27, 2025
Diversified Energy has been awarded the Gold Standard Reporting certification by the Oil Gas Methane Partnership 2.0, marking its fourth consecutive year of recognition. This certification underscores the company’s commitment to reducing me...
Business Operations and StrategyFinancial Disclosures
Diversified Energy to Release Q3 2025 Results and Host Conference Call
Neutral
Oct 21, 2025
Diversified Energy Company PLC announced its plan to release its third-quarter financial and operational results for 2025 on November 3rd, after the US market closes. The company will host a conference call the following day to discuss these resul...
Delistings and Listing ChangesShareholder Meetings
Diversified Energy Announces NYSE Listing Transition
Neutral
Oct 17, 2025
Diversified Energy Company has announced its plan to move its primary listing to the New York Stock Exchange while maintaining a secondary listing on the London Stock Exchange. This transition involves a UK scheme of arrangement, resulting in a ne...
Business Operations and Strategy
West Virginia and Diversified Energy Establish Pioneering Well Plugging Fund
Positive
Oct 16, 2025
West Virginia and Diversified Energy have launched the Mountain State Plugging Fund, a pioneering public-private partnership aimed at retiring oil and gas wells without taxpayer expense. This initiative, involving a $70 million commitment over 20 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.