Added to YB: 2025-05-14
Pitch date: 2025-05-13
DEC [neutral]
Diversified Energy Company
+35.55%
current return
Author Info
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Company Info
Diversified Energy Company, an independent energy company, engages in the production, transportation and marketing of natural gas, oil, and liquids primarily in the Appalachian and Central regions of the United States.
Market Cap
$1.1B
Pitch Price
$9.53
Price Target
N/A
Dividend
7.94%
EV/EBITDA
4.16
P/E
3.19
EV/Sales
2.52
Sector
Oil, Gas and Consumable Fuels
Category
value
DEC to March
DEC (earnings update): Strong Q1 with $61.9m FCF (+45% YoY), tracking to $420m+ 2025 FCF. $40m land sales 1H25 (tripling). -$337.4m loss due to $235m hedge mark-to-market + $48m Maverick costs. Concerns: 40% LOE increase, higher plugging costs. P/E 3.4x on est £235m 2025 adj profit. Bullish nat gas outlook as US supply curves peak. Synergies to exceed $50m target.
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