Diversified Energy Reports Solid Q2 Results, Boosts Output and Announces $2 Billion Partnership with Carlyle Group

Diversified Energy Company reported strong Q2 results with 1H25 average production up 35% YoY to 1,007 MMcfepd. Total revenue surged 79% to $804 million, while adjusted EBITDA nearly doubled to $418 million. The company also announced a $2 billion strategic partnership with The Carlyle Group to target US proved developed producing assets. Adjusted free cash flow reached $152 million after transaction costs, with an annualized Q2 yield of 31%.

Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) has announced its interim results for the six months ended June 30, 2025, showcasing robust financial performance and strategic progress. The company reported total revenue of $804 million, a 79% increase year-over-year (YoY), and adjusted EBITDA of $418 million, nearly doubling from the same period last year. Adjusted free cash flow reached $152 million after non-recurring transaction costs, with an annualized Q2 yield of 31% [1].

The company's average 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 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 [1].

Diversified Energy has returned over $105 million to shareholders year-to-date through dividends and share repurchases. The company's share repurchase program 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 [1].

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" [1].

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. The company's portfolio optimization program realized approximately $70 million in cash flow from non-core asset and leasehold divestitures, highlighting its commitment to unlocking value and driving long-term growth [1].

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