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Diversified Energy Company
(LSE:DEC)
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Rating:72Outperform
Price Target:
1,325.00 p
â–²(33.17% Upside)
Action:Upgraded
Date:11/18/25
The company's overall stock score is strongly influenced by the recent earnings call, which signals robust growth in EBITDA, substantial shareholder returns, and successful debt reduction—key positives that outweigh the significantly weak financial performance in reported statements. Momentum remains strong per technicals, but short-term risks exist due to overbought signals. The high dividend yield supports valuation, though persistent losses temper that strength. While financial statement risks are elevated, operational improvements and strategic initiatives provide optimism moving forward.
Positive Factors
Cash generation
Meaningful operating and free cash flow in 2025 demonstrates the company's ability to fund maintenance, targeted reinvestment, dividends and debt reduction from operations. Sustained cash generation supports durable capital returns and deleveraging even amid commodity cycles, improving strategic optionality over months.
Negative Factors
Volatile earnings & cash conversion
Earnings and margin volatility across years indicate underlying operating inconsistency and sensitivity to non‑operating items. Negative EBITDA in a profitable year and variable FCF conversion mean reported profits may not reliably translate to cash, complicating long-term planning and reducing predictability of returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Meaningful operating and free cash flow in 2025 demonstrates the company's ability to fund maintenance, targeted reinvestment, dividends and debt reduction from operations. Sustained cash generation supports durable capital returns and deleveraging even amid commodity cycles, improving strategic optionality over months.
Read all positive factors
Diversified Energy Company (DEC) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£717.54M
Dividend Yield8.63%
Average Volume (3M)76.99K
Price to Earnings (P/E)2.9
Beta (1Y)0.61
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees1,987
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)8.59
Shares Outstanding72,323,470
10 Day Avg. Volume65,223
30 Day Avg. Volume76,990
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
£1,583.71Price Target Upside59.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.21
Revenue Forecast (FY)£1.42B
Diversified Energy Company Business Overview & Revenue Model
Company Description
Diversified Energy Company PLC, rebranded from Diversified Gas & Oil PLC in May 2021, functions as an autonomous entity that owns and operates active natural gas and crude oil wells. Its main operational base is located within the Appalachian Basi...
How the Company Makes Money
DEC primarily makes money by producing and selling natural gas, natural gas liquids (NGLs), and oil from its operated and non-operated wells. Revenue is generated from commodity sales volumes multiplied by realized prices, which can be affected by...
Diversified Energy Company Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 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
72
Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.69B | 1.61B | 794.84M | 868.26M | 1.92B | 977.04M |
| Gross Profit | 791.04M | 411.59M | 109.45M | 203.16M | 1.25B | 515.35M |
| EBITDA | 1.32B | 923.82M | 170.18M | 1.36B | -476.50M | -332.69M |
| Net Income | 623.33M | 341.90M | -88.27M | 758.02M | -625.41M | -325.21M |
Balance Sheet | ||||||
| Total Assets | 6.11B | 6.17B | 4.00B | 3.47B | 3.83B | 3.49B |
| Cash, Cash Equivalents and Short-Term Investments | 8.24M | 29.70M | 5.99M | 3.75M | 7.33M | 12.56M |
| Total Debt | 2.96B | 3.03B | 1.74B | 1.31B | 1.47B | 1.04B |
| Total Liabilities | 5.15B | 5.17B | 3.54B | 2.88B | 3.97B | 2.83B |
| Stockholders Equity | 950.69M | 984.06M | 452.68M | 585.81M | -152.69M | 647.41M |
Cash Flow | ||||||
| Free Cash Flow | 269.85M | 280.02M | 293.56M | 335.88M | 301.69M | 270.01M |
| Operating Cash Flow | 426.25M | 464.62M | 345.66M | 410.13M | 387.76M | 320.18M |
| Investing Cash Flow | -100.17M | -820.17M | -272.92M | -239.37M | -386.46M | -625.87M |
| Financing Cash Flow | -357.41M | 448.40M | -70.51M | -174.34M | -6.54M | 316.87M |
Diversified Energy Company Technical Analysis
Negative
995.00
Price Trends
1010.69
Negative
1090.02
Negative
1040.44
Negative
Market Momentum
-10.88
Negative
46.92
Neutral
54.16
Neutral
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 995 is above the 20-day moving average (MA) of 988.95, below the 50-day MA of 1010.69, and below the 200-day MA of 1040.44, indicating a bearish trend. The MACD of -10.88 indicates Negative momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.16 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.75B | 20.43 | 10.68% | 10.11% | 0.87% | 770.57% | |
77 Outperform | $1.33B | 19.17 | 21.80% | 9.14% | -2.97% | -33.78% | |
72 Outperform | £717.54M | 2.88 | 40.22% | 8.47% | ― | ― | |
66 Neutral | $1.06B | 15.60 | 959.49% | 6.64% | -11.58% | -12.24% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $116.99M | -155.90 | -32.86% | ― | -99.80% | -170.31% | |
60 Neutral | $2.30B | -3.35 | -29.09% | 8.50% | -6.81% | -197.47% |
* Energy Sector Average
GB:DEC
Diversified Energy Company
985.00
-21.00
-2.09%
DMLP
Dorchester Minerals
25.82
2.58
11.09%
NOG
Northern Oil And Gas
20.28
-2.58
-11.30%
SJT
San Juan Basin Royalty
2.46
-3.37
-57.80%
SBR
Sabine Royalty
70.73
5.32
8.13%
KRP
Kimbell Royalty Partners
14.51
1.15
8.58%
Diversified Energy Company Corporate Events
Business Operations and StrategyFinancial Disclosures
Diversified Energy Sets Date for Second-Quarter 2026 Results and Investor Call
Positive
Jul 29, 2026
Diversified Energy Company will release its operational and financial results for the quarter ended June 30, 2026, after the U.S. market close on August 5, 2026. The update will be accompanied by a conference call the following day, offering inves...
Business Operations and StrategyStock Buyback
Diversified Energy Cancels 328,781 Shares After Buyback
Positive
Jul 3, 2026
Diversified Energy Company has repurchased 328,781 shares of its common stock under its previously announced buyback program, at a volume-weighted average price of $14.1614 per share, through Mizuho Securities USA. The acquired shares will be canc...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Diversified Energy Reduces Share Count with Latest Buyback
Positive
Jul 2, 2026
Diversified Energy Company has executed a share buyback under its previously announced program, repurchasing 289,721 common shares at a volume-weighted average price of $13.6807 through Mizuho Securities USA. The repurchased shares will be cancell...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Diversified Energy Advances Buyback, Cuts Share Count to 71.7 Million
Positive
Jun 30, 2026
Diversified Energy Company has executed a tranche of its previously announced share buyback program, repurchasing 328,781 common shares at a volume-weighted average price of $13.402 through Mizuho Securities USA LLC. The shares will be cancelled, ...
Stock BuybackRegulatory Filings and Compliance
Diversified Energy Cancels 287,000 Shares After Buyback, Cuts Share Count to 72 Million
Positive
Jun 29, 2026
Diversified Energy Company has repurchased 287,325 shares of its common stock under its previously announced buyback program at a volume-weighted average price of $12.9926 per share, with purchases executed through Mizuho Securities USA. The repur...
Dividends
Diversified Energy Declares Q4 2025 Dividend with Sterling Option
Positive
Jun 18, 2026
Diversified Energy Company has declared a fourth-quarter 2025 dividend of $0.29 per share, payable on June 30, 2026, to shareholders of record as of May 29, 2026. Investors who elected to receive their payout in GBP will receive 21.567 pence per s...
Business Operations and StrategyFinancial Disclosures
Diversified Energy Highlights Economic and Environmental Impact in 2025 Sustainability Report
Positive
May 28, 2026
Diversified Energy Company has released its seventh annual sustainability report, highlighting its role as a responsible steward of mature energy assets that larger operators have exited. The company’s model centers on disciplined operations...
Business Operations and StrategyExecutive/Board Changes
Diversified Energy Adds Veteran CFO to Board to Support Growth Strategy
Positive
May 21, 2026
Diversified Energy Company, a U.S.-listed energy producer specializing in long-life, cash-generating assets, emphasizes a strategy of responsible operations and asset retirement, with a focus on environmental performance and sustainability recogni...
Business Operations and StrategyShareholder Meetings
Diversified Energy Shareholders Back All Resolutions at 2026 AGM
Positive
May 8, 2026
Diversified Energy Company reported that all resolutions presented at its Annual Meeting of Shareholders on May 6, 2026, received shareholder approval. Investors backed the re-election of all nominated directors, ratified the independent auditors,...
Business Operations and StrategyDividends
Diversified Energy Declares First-Quarter 2026 Dividend of 29 Cents Per Share
Positive
May 6, 2026
Diversified Energy Company has declared a first-quarter dividend of 29 cents per share for the period ended March 31, 2026, to be paid on September 30, 2026, to shareholders of record on August 28, 2026. The dividend will be paid in U.S. dollars, ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Diversified Energy Leans on Cash Flow, Acquisitions and Portfolio Sales in Strong Q1 2026
Positive
May 6, 2026
Diversified Energy reported first-quarter 2026 average production of 1,198 MMcfepd and total commodity revenue of $556 million, generating $287 million of adjusted EBITDA and $160 million of adjusted free cash flow despite a reported net loss driv...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Diversified and Carlyle Seal $1.2 Billion ABS-Funded Anadarko Acquisition
Positive
May 6, 2026
Diversified Energy Company, in partnership with Carlyle’s Global Credit platform, has agreed to acquire a $1.175 billion portfolio of oil and natural gas assets in Oklahoma’s Anadarko Basin from Camino Natural Resources. The bolt-on de...
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.