Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) chief executive Rusty Hutson, in today’s annual results statement, told investors the firm has started the new year “in a position of strength as a bigger, better business”.
“There has never been a more exciting time for our company and the energy industry,” Hutson said.
“We feel privileged to be at the heart of the energy renaissance as the right company at the right time to help provide essential energy needs.”
His comments followed DEC is sealing its latest company-expanding acquisition – with the $1.28 billion deal to buy Maverick Natural Resources, adding scale that will bring daily volumes to around 200,000 barrels per day.
DEC has been acquisitive since inception, and Maverick isn’t the only recent deal, altogether it did $2 billion of business in 2024.
Over the year, production averaged 132,000 barrels of oil equivalent per day, and, by the end of December, the exit rate for the year measured 144,000 boepd.
Total revenue reached $946 million, inclusive of $151 million in commodity cash hedge receipts, whilst operating cash flow amounted to $346 million. The company posted a net loss of $87 million, after $141 million in tax-effected, non-cash fair value adjustments.
It retired over $200 million in debt principal, and returned $105 million to shareholders, including $21 million spent on share buybacks.
For 2025, Diversified Energy targets earnings (adjusted EBITDA) of between $825 million and $875 million and adjusted free cash flow of approximately $420 million.
“Whether it’s natural gas to power the technology of the future or the everyday needs of families and businesses across our operating region, Diversified provides the reliable and sustainable energy needed,” Hutson said.
“We continue to invest in growing our business while expanding our opportunity set of cash flow generation through verticals in a variety of end markets.”
He added: “We have built a company that remains highly focused on long-term value creation through the growth of our platform and our ability to leverage vertical integration and scale to operate a structurally and dependably higher-margin business that delivers de-risked consistent cash flow.
“The strong demand for natural gas provides us with momentum as we begin the year and the confidence to achieve our full-year 2025 expectations while executing against our capital allocation strategy.”