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Added to YB: 2026-05-11

Pitch date: 2026-05-07

DEC [neutral]

Diversified Energy Company

-0.45%

current return

Author Info

The Oak Bloke shares analysis of the UK stock market, particularly overlooked small caps. Sign up for the newsletter.

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

$15.72

Price Target

N/A

Dividend

7.56%

EV/EBITDA

4.61

P/E

2.39

EV/Sales

2.15

Sector

Oil, Gas and Consumable Fuels

Category

value

Show full summary:
DEC-ades of performance

DEC (update): Q1 FY26 net profit $136M (ex-property sales), $540M annualized vs $1.07B mkt cap = 2x P/E. No production decline: 200 kboepd avg, 205 exit rate. Adj EBITDA margin up to 68% (57% ex-property sales). Camino acq: $210M for $160M NTM EBITDA, 40% cash flow, 100% land rights, 25% reserve boost. Sheridan adds 15 kboepd. Buybacks cut shares 4M. Trades 3.5x EV/EBITDA vs 28x datacenter comps. Guidance excludes Camino/Sheridan ($75M EBITDA). Net debt -$70M, targeting 2-2.5x leverage.

Read full article (3 min)