Diversified Energy Company PLC's (LSE:DEC, NYSE:DEC) third quarter benefited from contributions from the Crescent Pass acquisition as well as a robust performance from the underlying portfolio, says Stifel.
On top of this operational delivery, Diversified continues to find new ways to extract value from the portfolio, says the house broker.
“Sales of undeveloped acreage now total $23 million year to date and we anticipate sustained demand for Diversified's undeveloped land position.
“Diversified has also established a new revenue stream by expanding into Coal Mine Methane capture and environmental credit sales,” adds the broker, noting that the opportunity here could be significantly larger than the 2024 EBITDA of US$8 - US$10 million.
Stifel’s NAV target stands at 2,448p/sh and 'buy' with a 2,450p target is its investment view.