Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) gave its trading update on what it described as a "solid” 2024, ahead of reporting financial results in March.
The detailed update highlighted stable production, strong cash flow, and the firm’s continuing expansion through acquisitions.
It produced an average of 132,000 barrels of oil equivalent per day over a year, with the rate in the fourth quarter reaching 141,000 boepd – and it exited the calendar year at 144,0000 boepd.
DEC expects to report earnings (adjusted EBITDA) between $470 million and $475 million, while free cash flow (adjusted) is seen between $210 million and $215 million.
Across the firm’s well portfolio, the average operating cost equated to $10.22 per barrel.
In the year, some $105 million was returned to shareholders including a $21 million spent on backs. Plus, DEC retired $200 million of debt principal.
“Our strong results highlight our unique business model that strives to deliver consistent cash flow during the full range and volatility of commodity cycles,” chief executive Rusty Hutson said in a statement.
“Aligned with our priorities, we generated significant cash flows, returned capital to investors, and paid down more than $200 million in debt principal, all while executing and integrating over $585 million in accretive acquisitions.
“Once again, our ability to deliver durable production and consistent cash flow throughout the year was a result of our team's relentless execution of our strategies.”
DEC undertook $585 million of acquisitions in the year, and, more recently, in early 2025, announced its biggest deal to date, buying
Additionally, the company announced a $1.30 billion acquisition of Maverick Natural Resources,
The company, meanwhile, retired 202 wells in 2024, marking its third consecutive year exceeding its stated goal of 200 well retirements.
Next LVL Energy, Diversified’s plugging subsidiary, retired 287 wells, including 85 wells from state orphan well programs and third-party operators.
Looking ahead, Hutson added: “We believe that 2025 has the potential to be a transformative year for the company as we work to execute our strategic initiative to become the premier public company focused on managing mature producing assets.
“The Company's previously announced accretive acquisitions of Summit Natural Resources and Maverick Natural Resources are proceeding as planned, and we have received encouraging comments from both shareholders and the public debt and equity markets.
“During the past year, we have seen our strategy and our previous investment decisions yield increased performance in all aspects of our business model.
“We are optimistic about our future and confident that our current efforts will continue to position us well to have a significant positive impact on shareholder value."