Shares in Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) rose 5% on Monday after the company posted what Peel Hunt called a solid first-quarter update, underpinned by stronger-than-expected revenues and steady cash generation.
The report is the first since DEC closed its acquisition of Maverick Natural Resources. Although only two weeks of Maverick’s production were included in the quarter, the numbers suggest meaningful progress.
Average daily output for the period was 864 million cubic feet equivalent per day, with an end-of-quarter rate closer to 1,149 million. Revenue reached $347 million, ahead of Peel Hunt’s $312 million forecast, while free cash flow came in at $62 million.
Margins remained healthy. Adjusted EBITDA margin was 47%, or 55% on an unhedged basis.
Peel Hunt noted that the slight rise in per-unit expenses reflects Maverick’s more liquids-heavy production, but expects those costs to ease as integration and efficiency gains kick in.
The broker flagged upside from $50 million in projected synergies and further optionality from $400 million of undeveloped acreage acquired at a discount to prevailing Oklahoma prices. DEC also added to its 2026–29 hedge book at floor prices of around $3.68.
Peel Hunt reiterated its buy rating and 3,000p target, calling the update a confident step forward.
The stock rose 58.5p to 1,047p.