Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) shares strengthened on Monday after it told investors that its portfolio continues to deliver consistent returns, as it reports strong first-half financials.
DEC reported second-quarter 2025 revenue of $510 million and earnings (adjusted EBITDA) of $280 million. It saw $88 million of adjusted free cash flow.
Production averaged 192,000 barrels of oil equivalent per day in the six-month period.
DEC noted that the integration of the Maverick Natural Resources assets is on track, and its synergy targets have raised $60 million.
“Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams,” said chief executive Rusty Hutson.
“With the successful integration of Maverick progressing on schedule, we are already realising meaningful synergies and operational efficiencies that enhance our ability to optimise cash flow in our expanded portfolio and drive long-term value from our investments.”
In the year-to-date, the company has returned $105 million to shareholders through dividends and share repurchases.
At quarter-end, liquidity was marked at $416 million and the leverage ratio was 2.6x.
Rusty Hutson, meanwhile, highlighted the agreed strategic partnership with The Carlyle Group, which includes some $2 billion of investment commitment, and said it marked “a transformational milestone” for the company.
“It strengthens our ability to scale responsibly, in a non-dilutive manner, while preserving our disciplined approach to capital allocation,” he said.
Hutson added: “We remain focused on unlocking value across our portfolio through asset optimisation, which resulted in approximately $70 million of additional cash flow, high-return projects with our targeted capital investments, and the continuation of portfolio optimisation through Smarter Asset Management (SAM) programs.”
“We remain confident in our ability to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders.”
DEC shares rose by 91p or 8.3% changing hands at 1,186p.