Diversified Energy Company is an independent energy company engaged in the production, marketing, and transportation of primarily natural gas related to its synergistic U.S. onshore upstream and midstream assets.
The company's focus is to create long-term value for all stakeholders and to maximize shareholder returns through its differentiated strategy of acquiring, optimizing and managing existing natural gas and oil assets. In recent years, Diversified has grown rapidly by capitalizing on opportunities to acquire and enhance producing assets, leverage the operating efficiencies that result from economies of scale, and advance peer-leading sustainability programs.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC, FRA:DG20) has agreed its largest-ever acquisition, paying about $1.8 billion for Permian Basin producer Birch in a transaction expected to increase group production by around 35% and adjusted EBITDA by roughly 55%.
Birch brings approximately 68,000 barrels of oil equivalent per day of net production and an estimated $548 million of annualised adjusted EBITDA.
Its portfolio includes 480 net wells and around 46,000 net mineral acres, alongside gathering, processing and water infrastructure, with Diversified estimating EBITDA margins of about 80%.
The deal is expected to be immediately accretive on key per-share financial measures and would take pro forma gross volumes under Diversified's operated control to around 2.5 Bcfepd, equivalent to approximately 1.6 Bcfepd net. The Birch production mix is around 38% oil, 32% natural gas liquids and 30% gas.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC, FRA:DG20), the Alabama-based gas producer listed in London and New York, is to start drilling its own wells, a departure from the acquisition-led model that built the company.
The company said it would launch a one-rig operated development programme in Oklahoma in the second half of this year, spending $35 million to $50 million.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC, FRA:DG20) said its operations have contributed about US$5 billion to state GDPs across its operating area over the past four years, as the group published its seventh annual sustainability report.
The 2025 report, titled PROVEN: Stepping Up When Others Step Away, sets out the company’s role in acquiring established, cash-generating energy assets and managing them through operational improvement, emissions reduction and long-term well retirement.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) is tipped to add substantial value to its current market price, as the US-focussed mature oil and gas firm continues to impress with its operating and financial performance.
In London, stockbroker Stifel has repeated a ‘Buy’ recommendation with an NAV-based price target pitched at 2,018p – versus the current price of 1,145p.
It comes after DEC yesterday released interims that confirmed a portfolio continues to deliver consistent returns.
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) CEO Rusty Hutson Jr. joined Steve Darling from Proactive to shared positive updates in its Q3 trading results, highlighting both strong operational performance and strategic growth moves. For the quarter ending September 30, 2024, Diversified reported an average production of 829 million cubic feet equivalent per day (MMcfepd), with an exit rate of 851 MMcfepd in September. The company’s quarterly operating cash flow reached $102 million, while earnings totaled $115 million.
However, non-cash impairments led to a net loss of $1 million. Additionally, Diversified entered a fixed-price gas delivery contract with a major Gulf Coast LNG export facility, supporting long-term revenue stability. Year-to-date, the company generated approximately $23 million in cash flow by divesting undeveloped leasehold interests and ventured into Coal Mine Methane (CMM) capture, an adjacent market poised to contribute $8-10 million in EBITDA for 2024 through environmental credit sales.
The company is making strides in its commitment to sustainable operations, with 165 operated wells retired as of Q3, on track to meet or surpass its target of 200 retirements in 2024. Subsidiary Next LVL Energy retired 233 wells, including 68 wells associated with orphan and third-party operations, enhancing Diversified’s environmental stewardship across its Appalachian footprint.