Diversified Energy Soars 9.2% on Strong Q2 Earnings

Diversified Energy's stock surged 9.2% in pre-market trading on August 11, 2025, driven by a series of strategic and financial achievements that underscored the company's robust performance and growth prospects.

Diversified Energy reported strong second-quarter 2025 results, with revenue of $510 million and adjusted EBITDA of $280 million. The company's adjusted free cash flow for the quarter was $88 million, reflecting its disciplined execution and operational efficiency. The company's portfolio optimization program contributed $70 million in cash flow year-to-date, highlighting its success in monetizing non-core assets and leasehold divestitures.

Diversified Energy's strategic partnership with The Carlyle Group, which involves a $2 billion investment in U.S. proved developed producing (PDP) oil and gas assets, is expected to enhance the company's stature as a leading consolidator in the upstream PDP sector. This partnership is non-dilutive, preserving capital flexibility and supporting long-term growth.

The company's integration of Maverick Natural Resources is progressing smoothly, with an increased annualized synergy target of $60 million. This integration is expected to deliver significant operational efficiencies and cost savings, further enhancing Diversified Energy's financial performance.

Diversified Energy's commitment to environmental sustainability and regulatory compliance is evident in its NextLVL Energy program, which has retired 1,112 wells since its establishment in 2022. The company's focus on asset optimization and sustainable operations positions it well to navigate the evolving energy landscape and deliver long-term value to shareholders.