What is Diversified Energy's latest dividend and current dividend yield?

What guidance did Diversified Energy's management provide for the next earnings period?

What is Diversified Energy's gross profit margin?

What is the revenue and EPS growth rate for Diversified Energy year over year?

What is the market's earnings forecast for Diversified Energy next quarter?

What factors drove the changes in Diversified Energy's revenue and profit?

What does Diversified Energy do and what are its main business segments?

What were the key takeaways from Diversified Energy’s earnings call?

- **Record Financials**: Q3 EBITDA of $286 million (66% margin) and free cash flow of $144 million, driven by acquisitions and operational excellence.
- **Shareholder Returns**: $146 million returned to shareholders YTD, with shares undervalued at 3.8x EV/EBITDA.
- **Sustainability Breakthrough**: $70 million West Virginia plugging fund addresses 30% of ARO, with potential to expand to 60% of liability.
- **Growth Catalysts**: $400 million liquidity for M&A, with Canvas Energy closing by end-2025 and 7% EBITDA guidance increase.

**【CEO Summary Section】**
- **Revenue Growth and Strategic Acquisitions**: Q3 revenue grew 15% YoY, driven by the integration of Maverick Natural Resources and the upcoming Canvas Energy acquisition. Adjusted EBITDA reached $286 million, a record high, with free cash flow of $144 million.
- **Capital Allocation**: $203 million in debt reduction and $146 million returned to shareholders in the first 9 months of 2025. Total shareholder returns since IPO exceed $2.2 billion.
- **Market Expansion**: Moving primary listing to NYSE to enhance liquidity and attract U.S. investors, with U.S. ownership increasing to over 60%.
- **Sustainability Initiative**: $70 million investment over 20 years in a public-private partnership to fund well retirement in West Virginia, addressing 30% of balance sheet liability.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 production exited at 1.14 Bcf/d, with EBITDA margin of 66%. Year-to-date portfolio optimization generated $143 million in proceeds, supporting debt reduction and acquisitions.
- **Leverage and Liquidity**: Net debt of $2.5 billion, with leverage ratio at 2.0x (target 2.0x-2.5x). Liquidity of $400 million provides flexibility for M&A and share buybacks.
- **Shareholder Returns**: Dividend yield of 9% and strategic share repurchases, with shares undervalued at 3.8x EV/EBITDA despite 80% YoY revenue growth.

**【Q&A Highlights】**
- **Capital Allocation**: Prioritize share buybacks due to undervaluation, with $400 million liquidity for M&A and debt reduction.
- **Plugging Fund Replication**: West Virginia agreement serves as a blueprint, with potential expansion to other states to address 60% of ARO liability.
- **ABS Market**: Low-cost capital source for acquisitions, with Diversified as the industry leader in ABS issuance.
- **Portfolio Optimization**: Annual $40-50 million baseline from asset sales, with recent compressor station acquisition reducing costs by $1 million/month.
- **Integration Efficiency**: Maverick fully integrated in 6 months, with Canvas expected to close by end-2025 and synergies captured promptly.

DEC

DEC fundamentals

You can ask Aime