Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) shares climbed 10% to 1,061p after the company raised its full-year targets following a record third quarter that saw profits, cash flow and shareholder returns all surge.
The US-focused gas and oil producer now expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between $900 million and $925 million for 2025, about 7% higher than previously forecast, and has lifted its free-cash-flow goal by 5% to around $440 million.
Revenue for the three months to 30 September more than doubled to $500 million, while adjusted EBITDA hit a record $286 million.
Free cash flow reached $144 million, boosted by proceeds from asset sales under a portfolio optimisation drive. Average daily production rose 36% year on year to 1,127 million cubic feet equivalent, largely weighted towards natural gas.
Diversified said its balance sheet continues to strengthen, with net debt reduced to 2.4 times EBITDA, about 20% lower than at the end of 2024.
The group has returned $146 million to shareholders so far this year through dividends and buy-backs, including a $0.29 per share payout for the third quarter.
Chief executive Rusty Hutson said the company’s strong operational performance and synergy gains have underpinned the higher guidance.
He added that Diversified’s planned redomicile to the US and primary New York listing would support “further growth and shareholder value.”