Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) showed strong results for the first quarter of 2025, supported by higher revenue and operational discipline.
The company reported total revenue of $295 million and earnings (adjusted EBITDA) of $138 million for the period.
Production averaged 864,000 MMcfepd, with a March exit rate of 1,149 MMcfepd.
DEC’s acquisition of Maverick Natural Resources closed on March 14, so the unit contributed two weeks to the quarter's results.
“Diversified is off to a great start in 2025, demonstrating the resilience of our business model in an otherwise volatile business environment while advancing our long-term strategy with the transformational acquisition of Maverick Natural Resources,” chief executive Rusty Hutson said in a statement.
“Despite the broader macroeconomic and geopolitical challenges, we delivered solid operational results and continued growth in free cash flow.”
“We remain committed to effectively allocating capital.”
Hutson added: “We believe our shares remain a compelling investment at current levels, and we will continue to take advantage of the current cycle and market dislocation to opportunistically repurchase shares.”
Looking ahead, Hutson noted that DEC expects to achieve an annualised synergy target of $50 million as it progresses asset integrations.
Meanwhile, Diversified added hedge volumes for 2026 to 2029 at a floor price of around $3.68/MMBtu.
The company declared a dividend of $0.29 per share and returned more than $59.00 million to shareholders through dividends and buybacks. It also retired $51.00 million in debt.