Update shared on11 Sep 2025
Fair value Decreased 2.78%Despite a significant drop in the future P/E multiple alongside an improved outlook for revenue growth, the consensus analyst price target for Diversified Energy has decreased slightly from £18.81 to £18.29.
What's in the News
- Reported Q2 average net daily production of 1,149 MMcfepd, with H1 average of 1,007 MMcfepd, up from 746 MMcfepd year-on-year.
- Reiterated 2025 production guidance of 1,050 to 1,100 MMcfepd, with production mix of ~25% liquids and ~75% natural gas.
- Completed repurchase of 3,273,466 shares (6.38%) for £43 million under the March 2025 buyback; also completed 1,766,632 shares (3.63%) for $23.62 million under the June 2023 buyback plan.
- Announced strategic partnership with Carlyle to invest up to $2 billion in existing PDP natural gas and oil assets across the U.S., with Diversified as operator and servicer.
- Dropped from multiple Russell growth indices, including Russell 2000, 2500, 3000, Microcap, and Small Cap Comp Growth indices.
Valuation Changes
Summary of Valuation Changes for Diversified Energy
- The Consensus Analyst Price Target has fallen slightly from £18.81 to £18.29.
- The Future P/E for Diversified Energy has significantly fallen from 9.54x to 7.26x.
- The Consensus Revenue Growth forecasts for Diversified Energy has significantly risen from 16.4% per annum to 19.2% per annum.
Disclaimer
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