Diversified Energy Company Reports Strong First-Half Financials, Shares Rise 8.3%

Diversified Energy Company PLC reported Q2 2025 revenue of $510 million and earnings of $280 million, with production averaging 192,000 barrels of oil equivalent per day. The company's strong performance reflects its resilient business model, high-quality assets, and dedicated teams. It has returned $105 million to shareholders and has a liquidity of $416 million, with a leverage ratio of 2.6x. DEC shares rose 8.3% to 1,186p after the announcement.

Diversified Energy Company PLC (DEC) reported its interim results for the six months ended June 30, 2025, highlighting consistent cash margins, year-over-year growth, and disciplined execution of its Maverick acquisition integration. The company's strong performance reflects its resilient business model, high-quality assets, and dedicated teams.

Financial Highlights

- Total revenue for the second quarter (Q2) 2025 reached $510 million, an increase of 73% year-over-year (YoY) [1].
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $280 million, a 103% increase YoY [1].
- Free cash flow (FCF) for the period was $88 million after accounting for nonrecurring transaction costs, an increase of 38% YoY [1].
- The company returned over $105 million to shareholders through dividends and share repurchases year-to-date (YTD) [1].

Operational Performance

- Average daily production for Q2 2025 was 1,149 million cubic feet of natural gas equivalent (MMcfepd), including oil and natural gas liquids (NGLs) [1].
- The company's production volume mix was approximately 73% natural gas, 13% NGLs, and 14% oil [1].
- The company's liquidity position was strengthened with $416 million of undrawn credit facility capacity and unrestricted cash [1].
- The leverage ratio improved to 2.6x, representing a ~13% improvement from the end of 2024 [1].

Shareholder Returns

- DEC shares rose 8.3% to 1,186p after the announcement of the Q2 2025 results [1].
- The company repurchased approximately 3.3 million shares YTD, totaling ~$43 million [1].

Strategic Initiatives

- The company's portfolio optimization program contributed $70 million in cash flow YTD, highlighting optionality in its portfolio to monetize Central Region acreage via non-op drilling or leasehold divestitures [1].
- The strategic partnership with The Carlyle Group, which includes a $2 billion investment in existing U.S. proved developed producing (PDP) oil and gas assets, underscores confidence in DEC's platform and provides significant capital flexibility [1].

Outlook

Diversified Energy Company remains focused on unlocking value across its portfolio through asset optimization, high return projects, and the continuation of portfolio optimization through Smarter Asset Management (SAM) programs. The company's operational excellence, fundamental market tailwinds, and strategic actions position it to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders.

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