Diversified Energy's Q2 2025 Results in Line with Expectations, Advances Maverick Integration and Achieves $60mln in Synergy Gains.

Diversified Energy Company reported Q2 2025 results with $510 million in revenue and $280 million in adjusted EBITDA, generating $88 million in adjusted free cash flow. The integration of Maverick Natural Resources is on track, delivering $60 million in synergy gains. The company has returned $105 million to shareholders through dividends and share repurchases and has a $2 billion investment commitment from The Carlyle Group.

Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) has released its interim results for the six months ended June 30, 2025, showcasing robust financial performance and strategic progress. The company reported total revenue of $510 million and adjusted EBITDA of $280 million, generating $88 million in adjusted free cash flow during the second quarter.

The integration of Maverick Natural Resources continues to deliver significant benefits, with the annualized synergy target increasing to $60 million from the previously stated $50 million. This integration has led to operational efficiencies and cost savings, further enhancing the company's financial health.

Diversified Energy has returned over $105 million to shareholders year-to-date through dividends and share repurchases. The company's share repurchase program, authorized at the 2025 Annual General Meeting, includes a maximum of 8,099,015 shares, with 4,756,842 shares repurchased to date. Additionally, the company has secured a $2 billion investment commitment from The Carlyle Group, underscoring confidence in its platform and capital flexibility.

The company's production volume mix remained steady, with natural gas accounting for 73% of total production, followed by natural gas liquids (NGLs) at 13% and oil at 14%. The company's operational excellence and strategic asset management programs continue to drive long-term value, with the portfolio optimization program realizing approximately $70 million in cash flow from non-core asset and leasehold divestitures.

Diversified Energy's liquidity remains strong, with $416 million of undrawn credit facility capacity and unrestricted cash. The company's leverage ratio of 2.6x net debt to EBITDA reflects a significant improvement from the previous year, indicating a solid financial position.

The company's CEO, Rusty Hutson, Jr., commented on the results, stating, "Diversified continues to deliver consistent returns on our assets, along with the expansion of our asset portfolio, reinforcing our position as the U.S. PDP Champion. Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams."

Diversified Energy is well-positioned to thrive in today's evolving energy landscape, driven by fundamental market tailwinds and strategic actions to optimize its portfolio of assets.

References:
[1] https://ir.div.energy/news-events/us-press-releases/detail/203/diversified-energy-reports-strong-second-quarter-results-highlighting-consistent-cash-margins-year-over-year-growth-and-disciplined-execution-of-maverick-acquisition-integration