Diversified Energy Company plc (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(15.18% Upside)
Action:Reiterated
Date: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
Cash generation
Sustained positive operating cash flow and meaningful free cash flow in 2025 indicate the business can fund maintenance capex, dividends and opportunistic M&A without relying solely on external financing. This strengthens long-term self‑funding and supports deleveraging and capital return strategies.
Negative Factors
High absolute net debt
Despite improved ratios, the company still carries substantial absolute net debt that requires sustained cash generation to service. Large outstanding debt increases sensitivity to prolonged commodity weak periods and constrains flexibility for large growth investments without external financing or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive operating cash flow and meaningful free cash flow in 2025 indicate the business can fund maintenance capex, dividends and opportunistic M&A without relying solely on external financing. This strengthens long-term self‑funding and supports deleveraging and capital return strategies.
Read all positive factors
Diversified Energy Company (DEC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£791.71M
Dividend Yield10.49%
Average Volume (3M)86.57K
Price to Earnings (P/E)3.1
Beta (1Y)0.52
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees1,589
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)4.67
Shares Outstanding72,323,470
10 Day Avg. Volume91,565
30 Day Avg. Volume86,568
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
£1,753.92Price Target Upside59.45% 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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call emphasized a series of strategic wins and strong operating and financial metrics: a large, accretive Camino acquisition structured to limit near-term balance sheet impact, record Q1 adjusted EBITDA ($287M) and a robust POP program ($101M cash proceeds). Management highlighted meaningful synergies (~$7M field / >$20M G&A), disciplined valuation (≈18% below peer average) and continued capital returns while improving pro forma leverage ~20% to 2.2x. Lowlights were limited: weather-related production impacts, ~$11M of transaction costs and gas-price friction, a sizable net debt balance (~$2.7B), and the fact that Camino’s PDP economics initially sit in an SPV (Diversified captures 40% residual cash flow until/if a buyout occurs). Overall, positives (large accretive deal, strong Q1 performance, clear synergies, disciplined capital allocation and substantial inventory) materially outweigh the noted challenges and execution/market risks.Positive Updates
Transformative Camino Acquisition with Innovative Financing
Announced acquisition (with Carlyle) of Camino assets valued at $1.175 billion; Diversified's cash consideration ~ $210 million (~20% of transaction value). Structure: SPV with 60% Carlyle / 40% Diversified, ABS debt at SPV level and equity-method accounting (off-balance-sheet for Diversified). Diversified retains 100% ownership of undeveloped acreage and will receive 40% of the SPV's residual cash flow plus management fees and potential promote.
Negative Updates
Weather‑Related Production Impacts
Production was negatively impacted in the quarter by Winter Storm Fern and other regional weather events; production volatility noted although exit rate remained in line with guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Transformative Camino Acquisition with Innovative Financing
Announced acquisition (with Carlyle) of Camino assets valued at $1.175 billion; Diversified's cash consideration ~ $210 million (~20% of transaction value). Structure: SPV with 60% Carlyle / 40% Diversified, ABS debt at SPV level and equity-method accounting (off-balance-sheet for Diversified). Diversified retains 100% ownership of undeveloped acreage and will receive 40% of the SPV's residual cash flow plus management fees and potential promote.
Read all positive updates
Company Guidance
Diversified reiterated full‑year 2026 guidance: production of 1.17–1.21 MMcfe/d with a ~28% liquids / ~72% gas mix; adjusted EBITDA of $925–975 million; adjusted free cash flow of ≈$430 million; total capex of $205–235 million (non‑operated capex $135–155 million; maintenance capex $70–80 million); and a target net‑debt/EBITDA leverage range of 2.0x–2.5x — noting the recently closed Sheridan deal and the Camino transaction are not fully reflected in these guidance figures.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
Negative
1100.00
Price Trends
1169.69
Negative
1065.48
Positive
1043.39
Positive
Market Momentum
-13.27
Positive
36.82
Neutral
5.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEC, the sentiment is Negative. The current price of 1100 is below the 20-day moving average (MA) of 1142.99, below the 50-day MA of 1169.69, and above the 200-day MA of 1043.39, indicating a neutral trend. The MACD of -13.27 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 5.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.30B | 18.98 | 21.88% | 12.53% | -2.97% | -33.78% | |
74 Outperform | $1.71B | 18.78 | 10.68% | 13.84% | 0.87% | 770.57% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | £791.71M | 3.11 | 40.22% | 10.49% | ― | ― | |
50 Neutral | $2.30B | -3.44 | -29.09% | 8.18% | -6.81% | -197.47% | |
| ― | $185.50M | -239.72 | -61.04% | ― | -99.80% | -170.31% | |
| ― | $1.10B | 15.95 | 959.49% | 7.51% | -11.58% | -12.24% |
* Energy Sector Average
GB:DEC
Diversified Energy Company
1,074.00
104.03
10.72%
DMLP
Dorchester Minerals
27.08
2.33
9.41%
NOG
Northern Oil And Gas
21.77
-3.55
-14.01%
SJT
San Juan Basin Royalty
3.86
-2.72
-41.34%
SBR
Sabine Royalty
74.77
12.29
19.67%
KRP
Kimbell Royalty Partners
15.01
2.71
22.03%
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.