Live nieuws • May 10
Diversified Energy Expands in Texas and Oklahoma With US$1.4b Acquisitions and Asset Sales Diversified Energy agreed a US$1.18b partnership deal with Carlyle to acquire Camino Natural Resources’ Oklahoma Anadarko Basin assets, adding around 300 MMcfepd of production and 1,478 Bcfe of proved reserves.
The company completed a US$248m acquisition of oil and gas assets from Sheridan Holding Company III in Texas and sold US$101m of non-core acreage as part of an ongoing portfolio reshaping.
For Q1 2026, Diversified reported a net loss of US$160.7m, largely linked to a US$548.4m derivatives loss, while commodity revenue was 69% higher and production was 39% higher; the company also returned US$94m to shareholders and reduced debt by US$92m.
For you as an investor, the key story is scale and mix. Diversified is committing roughly US$1.4b to expand its footprint in Texas and Oklahoma. Carlyle’s asset-backed securitization structure is funding the Camino deal and leaves Diversified in operational control, with a minority economic stake in the special purpose vehicle. At the same time, management is selling non-core acreage, returning cash through dividends and buybacks, and trimming debt, which indicates a focus on reshaping the asset base rather than just adding volume.
The Q1 loss, driven by derivatives, sits alongside higher reported commodity revenue and production. This highlights how hedging can affect reported earnings differently from underlying operations. Upcoming financial statements and pro forma information for the Sheridan deal may provide more clarity on how these transactions influence cash flow, leverage and risk exposure across the expanded portfolio. Aankondiging • Apr 30
Diversified Energy Company to Report Q1, 2026 Results on May 06, 2026 Diversified Energy Company announced that they will report Q1, 2026 results After-Market on May 06, 2026 Aankondiging • Mar 25
Diversified Energy Company, Annual General Meeting, May 06, 2026 Diversified Energy Company, Annual General Meeting, May 06, 2026. Aankondiging • Mar 11
Diversified Energy Company has completed a Follow-on Equity Offering in the amount of $107.355183 million. Diversified Energy Company has completed a Follow-on Equity Offering in the amount of $107.355183 million.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 7,501,585
Price\Range: $14.311 Aankondiging • Feb 12
Diversified Energy Company to Report Fiscal Year 2025 Results on Feb 26, 2026 Diversified Energy Company announced that they will report fiscal year 2025 results After-Market on Feb 26, 2026 Aankondiging • Jan 24
Diversified Energy Company Announces Resignation of Randall Wade from Board of Directors Diversified Energy Company announced that pursuant to the terms of the Relationship Agreement executed with EIG Management Company, LLC upon Diversified Energy’s acquisition of Maverick Natural Resources from investment funds managed by EIG and other owners in 2025, Randall Wade, Co-Founder of EIG, has resigned from the Company’s Board of Directors following a reduction in EIG’s ownership of Diversified Energy below 10% of the Company’s outstanding shares. Mr. Wade has served as a valued member of the Board, contributing his deep expertise in energy investments and strategic growth. Mr. Wade's resignation was not the result of any disagreement with the
Company. Price Target Changed • Dec 08
Price target increased by 9.0% to US$20.50 Up from US$18.80, the current price target is an average from 6 analysts. New target price is 33% above last closing price of US$15.41. Stock is down 0.3% over the past year. The company is forecast to post earnings per share of US$1.01 next year compared to a net loss per share of US$1.84 last year. Aankondiging • Dec 05
Diversified Energy Files Form 15 Diversified Energy Company PLC has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its Ordinary Shares, par value £0.20 per share under the Securities Exchange Act of 1934, as amended. Aankondiging • Nov 25
Diversified Energy Company PLC (LSE:DEC) completed the acquisition of CANVAS ENERGY LLC. Diversified Energy Company PLC (LSE:DEC) entered into an agreement to acquire CANVAS ENERGY LLC for approximately $550 million on September 8, 2025. The consideration consists of 3.4 million in new U.S. dollar-denominated ordinary shares, a privately rated and bilaterally structured asset-backed securitization originated by Carlyle of up to $400 million supported by the Assets, along with the balance in cash from existing liquidity under the Diversified Energy Company borrowing capacity, subject to any purchase price adjustments. In case of termination of transaction, Diversified Energy Company PLC will pay a termination fee of $55 million.
For Year ending June 30, 2025, CANVAS ENERGY reported gross assets amounted to $689 million, revenue and other income items of Canvas was $304 million, and net income (loss) was $107 million. The purchase price is targeted at approximately 4.0x the EBITDA .
The ordinary shares will be subject to a customary commercial registration lock-up agreement. The transaction is subject to regulatory approval. Diversified Energy Company expects to close the acquisition during the fourth quarter of 2025. As of November 19, 2025, the transaction is expected to complete on or around November 24, 2025.
Kirkland & Ellis LLP acted as legal advisor for Diversified Energy Company PLC. KeyBanc Capital Markets Inc. acted as financial advisor for Diversified Energy Company PLC. Evercore Inc. acted as financial advisor for CANVAS ENERGY LLC. BofA Securities, Inc. acted as financial advisor for CANVAS ENERGY LLC. Sidley Austin LLP acted as legal advisor for CANVAS ENERGY LLC. Legado Capital Advisors acted as financial advisor for Diversified Energy Company PLC. TCG Capital Markets L.L.C. acted as financial advisor for Diversified Energy Company PLC.
Diversified Energy Company PLC (LSE:DEC) completed the acquisition of CANVAS ENERGY LLC on November 24, 2025 Upcoming Dividend • Nov 24
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 01 December 2025. Payment date: 31 December 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 8.0%. Within top quartile of American dividend payers (4.5%). Higher than average of industry peers (4.1%). Aankondiging • Nov 20
Diversified Energy Company PLC has filed a Follow-on Equity Offering. Diversified Energy Company PLC has filed a Follow-on Equity Offering.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 80,620,444 Price Target Changed • Nov 12
Price target increased by 11% to US$20.67 Up from US$18.60, the current price target is an average from 4 analysts. New target price is 40% above last closing price of US$14.72. Stock is up 10% over the past year. The company is forecast to post earnings per share of US$2.01 next year compared to a net loss per share of US$1.84 last year. Aankondiging • Nov 04
Diversified Energy Announces Third Quarter Dividend, Payable on March 31, 2026 Diversified Energy Company PLC has declared an interim dividend of 29 cents per share for the three-month period ended September 30, 2025. Key dates: Record date is February 27, 2026; payment date is March 31, 2026. Aankondiging • Oct 22
Diversified Energy Company PLC to Report Q3, 2025 Results on Nov 03, 2025 Diversified Energy Company PLC announced that they will report Q3, 2025 results After-Market on Nov 03, 2025 Declared Dividend • Oct 01
Dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 1st December 2025 Payment date: 31st December 2025 Dividend yield will be 5.8%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is covered by cash flows (54% cash payout ratio). The dividend has increased by an average of 14% per year over the past 8 years. However, payments have been volatile during that time. Aankondiging • Sep 09
Diversified Energy Company PLC (LSE:DEC) entered into an agreement to acquire CANVAS ENERGY LLC for approximately $550 million. Diversified Energy Company PLC (LSE:DEC) entered into an agreement to acquire CANVAS ENERGY LLC for approximately $550 million on September 8, 2025. The consideration consists of 3.4 million in new U.S. dollar-denominated ordinary shares, a privately rated and bilaterally structured asset-backed securitization originated by Carlyle of up to $400 million supported by the Assets, along with the balance in cash from existing liquidity under the Diversified Energy Company borrowing capacity, subject to any purchase price adjustments. In case of termination of transaction, Diversified Energy Company PLC will pay a termination fee of $55 million.
For Year ending June 30, 2025, reported gross assets amounted to $689 million, revenue and other income items of Canvas was $304 million, and net income (loss) was $107 million.
The ordinary shares will be subject to a customary commercial registration lock-up agreement. The Company expects to close the Acquisition during the fourth quarter of 2025.
Kirkland & Ellis LLP acted as legal advisor for Diversified Energy Company PLC. KeyBanc Capital Markets Inc. acted as financial advisor for Diversified Energy Company PLC. Evercore Inc. acted as financial advisor for CANVAS ENERGY LLC. BofA Securities, Inc. acted as financial advisor for CANVAS ENERGY LLC. Sidley Austin LLP acted as legal advisor for CANVAS ENERGY LLC. Legado Capital Advisors acted as financial advisor for Diversified Energy Company PLC. TCG Capital Markets L.L.C. acted as financial advisor for Diversified Energy Company PLC. Upcoming Dividend • Aug 22
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 29 August 2025. Payment date: 30 September 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 7.0%. Within top quartile of American dividend payers (4.5%). Higher than average of industry peers (4.1%). Reported Earnings • Aug 14
First half 2025 earnings released: US$0.50 loss per share (vs US$0.32 profit in 1H 2024) First half 2025 results: US$0.50 loss per share (down from US$0.32 profit in 1H 2024). Revenue: US$778.1m (up 123% from 1H 2024). Net loss: US$34.5m (down 329% from profit in 1H 2024). Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Price Target Changed • Aug 14
Price target increased by 7.8% to US$19.00 Up from US$17.63, the current price target is an average from 5 analysts. New target price is 25% above last closing price of US$15.16. Stock is up 17% over the past year. The company is forecast to post earnings per share of US$0.18 next year compared to a net loss per share of US$1.84 last year. Buy Or Sell Opportunity • Aug 06
Now 20% undervalued Over the last 90 days, the stock has risen 11% to US$14.48. The fair value is estimated to be US$18.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 24% over the last 3 years. Meanwhile, the company became loss making. Aankondiging • Jul 28
Diversified Energy Company PLC to Report Q2, 2025 Results on Aug 11, 2025 Diversified Energy Company PLC announced that they will report Q2, 2025 results on Aug 11, 2025 Aankondiging • Jul 02
Diversified Energy Company PLC Promotes Michael Garrett to Chief Accounting Officer Diversified Energy Company PLC announced the promotion of Michael Garrett to Chief Accounting Officer (“CAO”). Mr. Garrett, a certified public accountant, has been at Diversified since 2018, where he has held various leadership positions and currently serves as a Senior Vice President and Controller. In his new role, Garrett will be responsible for leading the Company’s corporate and regulatory accounting matters, external financial reporting, controllership, and tax, overseeing a team of approximately 75 financial professionals across numerous offices. Garrett will continue to report to Brad Gray, Diversified's President & Chief Financial Officer. Garrett brings 20 years of advanced accounting experience to his new role. He has previously served in accounting functions at Callon Petroleum, Pfizer, and Pinnacle Airlines with progressively higher responsibilities. Garrett is a graduate of Lambuth University with a degree in accounting and is a Certified Public Accountant (“CPA”). Buy Or Sell Opportunity • Jul 01
Now 22% undervalued Over the last 90 days, the stock has risen 2.2% to US$14.33. The fair value is estimated to be US$18.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 24% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • May 23
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 30 May 2025. Payment date: 30 June 2025. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 8.3%. Within top quartile of American dividend payers (4.8%). Higher than average of industry peers (4.2%). Price Target Changed • Apr 30
Price target decreased by 9.0% to US$19.90 Down from US$21.88, the current price target is an average from 6 analysts. New target price is 60% above last closing price of US$12.41. Stock is down 6.3% over the past year. The company is forecast to post earnings per share of US$3.45 next year compared to a net loss per share of US$1.84 last year. Aankondiging • Apr 14
Diversified Energy Company PLC Appoints Randall Wade as an Independent Non-Executive Director, Effective 11 April 2025 and to Become Member of the Board’s Sustainability and Safety Committee Diversified Energy Company PLC announced that its Board of Directors (the “Board”) has appointed Randall Wade as an independent non-executive director, effective 11 April 2025. Mr. Wade is a Co-Founder of EIG and a member of its Investment and Executive Committees. He has broad involvement in the firm’s various activities including investments, investor relations, operations and strategic initiatives. Since joining EIG in 1996, Mr. Wade has filled various roles including President, Chief Operating Officer, head of the direct lending strategy, investment principal with coverage responsibility for Australia and an analyst for the oil and gas team. Prior to joining EIG, Mr. Wade was a Commercial Lending Officer for First Interstate Bank of Texas, where he was responsible for developing a middle-market loan portfolio. Mr. Wade received his B.A. in Economics and his B.B.A. in Finance from the University of Texas at Austin. Upon his appointment, Mr. Wade will become a member of the Board’s Sustainability and Safety Committee. Mr. Wade previously served as a director for NGL Energy Partners and has held no other public company directorate positions in the last five years. New Risk • Apr 06
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 70% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Dividend per share is over 18x cash flows per share. Shareholders have been substantially diluted in the past year (70% increase in shares outstanding). Minor Risk High level of debt (363% net debt to equity). Price Target Changed • Apr 03
Price target decreased by 16% to US$21.50 Down from US$25.50, the current price target is an average from 6 analysts. New target price is 66% above last closing price of US$12.97. Stock is up 4.0% over the past year. The company is forecast to post earnings per share of US$3.33 next year compared to a net loss per share of US$1.84 last year. Declared Dividend • Apr 01
Fourth quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 30th May 2025 Payment date: 30th June 2025 Dividend yield will be 5.9%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. The dividend is also not covered by cash flows (dividend approximately 13x free cash flows). The dividend has increased by an average of 14% per year over the past 8 years. However, payments have been volatile during that time. Recent Insider Transactions • Mar 23
Independent Non-Executive Director recently bought US$198k worth of stock On the 18th of March, David Turner bought around 15k shares on-market at roughly US$13.19 per share. This transaction amounted to 45% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$665k more in shares than they have sold in the last 12 months. Aankondiging • Mar 19
Diversified Energy Company PLC Recommends Dividend for the Third Quarter Ended September 30, 2024, Payable March 31, 2025 Diversified Energy Company PLC recommend dividend of $0.29 per share for the third quarter ended September 30, 2024. The Company will pay the Third Quarter 2024 Dividend on March 31, 2025 to those shareholders on the register on February 28, 2025. The Company announces that shareholders who have elected to receive their dividends in GBP sterling will receive an equivalent dividend payment of 22.241 pence per share, based on the March 17, 2025 exchange rate of GBP 0.76693= $1.00.
. Aankondiging • Mar 17
Diversified Energy Company PLC Provides Combined Production Guidance for the Year 2025 Diversified Energy Company PLC provided combined production guidance for the year 2025. For the year, the company expects total Production of 1,050 Mmcfe/d to 1,100 Mmcfe/d. Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick Natural Resources assets while continuing to prioritize returns and Free Cash Flow generation. The outlook incorporates a nine-month contribution from the recently acquired Maverick. Reported Earnings • Mar 17
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: US$1.84 loss per share (down from US$16.07 profit in FY 2023). Revenue: US$794.8m (down 1.5% from FY 2023). Net loss: US$88.3m (down 112% from profit in FY 2023). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to stay flat during the next 3 years compared to a 3.9% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Aankondiging • Mar 17
Diversified Energy Company PLC, Annual General Meeting, Apr 09, 2025 Diversified Energy Company PLC, Annual General Meeting, Apr 09, 2025. Location: the offices of fti consulting, 200 aldersgate, aldersgate street, ec1a 4hd, london United Kingdom Aankondiging • Mar 15
Diversified Energy Company plc Appoints Rick Gideon as Chief Operating Officer, Effective March 18, 2025 Further to the announcements on January 27, 2025 and February 20, 2025, Diversified Energy Company PLC announced the completion of its previously announced acquisition of Maverick Natural Resources (the “Acquisition”). Following the closing of the Acquisition, Rick Gideon, Chief Executive Officer (CEO) of Maverick Natural Resources will become the Chief Operating Officer (COO) of the Company effective March 18th, 2025. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$11.28, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Oil and Gas industry in the US. Total loss to shareholders of 59% over the past three years. Aankondiging • Feb 28
Diversified Energy Company PLC completed the acquisition of acquire operated natural gas properties and related facilities of Summit Natural Resources LLC. Diversified Energy Company PLC (LSE:DEC) agreed to acquire operated natural gas properties and related facilities of Summit Natural Resources LLC for $45 million on January 6, 2025. A cash consideration of $45 million will be paid by Diversified Energy Company PLC. The transaction will be financed through cash on hand and current liquidity of $45 million.
The expected completion of the transaction is the first quarter of 2025.
Diversified Energy Company PLC completed the acquisition of acquire operated natural gas properties and related facilities of Summit Natural Resources LLC on February 27, 2025. Detring Energy Advisors acted as a advisor to Summit Natural Resources. New Risk • Feb 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 26% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Shareholders have been diluted in the past year (26% increase in shares outstanding). Upcoming Dividend • Feb 21
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 28 February 2025. Payment date: 31 March 2025. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 8.2%. Within top quartile of American dividend payers (4.5%). Higher than average of industry peers (3.9%). Aankondiging • Feb 20
Diversified Energy Company PLC has completed a Follow-on Equity Offering in the amount of $123.25 million. Diversified Energy Company PLC has completed a Follow-on Equity Offering in the amount of $123.25 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 8,500,000
Price\Range: $14.5 Aankondiging • Feb 19
Diversified Energy Company PLC has filed a Follow-on Equity Offering. Diversified Energy Company PLC has filed a Follow-on Equity Offering.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 8,500,000 Aankondiging • Feb 11
Diversified Energy Company PLC to Report Fiscal Year 2024 Results on Mar 17, 2025 Diversified Energy Company PLC announced that they will report fiscal year 2024 results on Mar 17, 2025 Aankondiging • Jan 27
Diversified Energy Reportedly in Advanced Talks to Buy Maverick Natural Diversified Energy Company PLC (LSE:DEC) is in advanced talks to buy private-equity-owned Maverick Natural Resources, LLC in what would be its largest acquisition ever, according to people familiar with the matter. A deal would value Maverick at roughly $1.3 billion, including debt, and could be announced as soon as early January 27, 2025, the people said. New Risk • Jan 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings are forecast to decline by an average of 3.5% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Shareholders have been diluted in the past year (7.0% increase in shares outstanding). Price Target Changed • Jan 05
Price target increased by 15% to US$22.50 Up from US$19.50, the current price target is an average from 5 analysts. New target price is 31% above last closing price of US$17.15. Stock is up 8.9% over the past year. The company is forecast to post earnings per share of US$2.33 for next year compared to US$16.07 last year. Declared Dividend • Dec 29
Dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 28th February 2025 Payment date: 31st March 2025 Dividend yield will be 5.1%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has increased by an average of 14% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to decline by 4.1% over the next 3 years. However, it would need to fall by 35% to increase the payout ratio to a potentially unsustainable range. Upcoming Dividend • Nov 22
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 29 November 2024. Payment date: 27 December 2024. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 7.3%. Within top quartile of American dividend payers (4.3%). Higher than average of industry peers (3.7%). Valuation Update With 7 Day Price Move • Nov 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$15.09, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Oil and Gas industry in the US. Total loss to shareholders of 45% over the past three years. New Risk • Nov 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings are forecast to decline by an average of 0.4% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Shareholders have been diluted in the past year (6.1% increase in shares outstanding). Aankondiging • Nov 12
Diversified Energy Company PLC Declares Interim Dividend for the Third Quarter Ended September 30, 2024, Payable on March 31, 2025 Diversified Energy Company PLC announced that the Board has declared an interim dividend of 29 cents per share in respect of third quarter of 2024 for the three month period ended September 30, 2024. Record Date: February 28, 2025. Payment Date: March 31, 2025. Default Currency: USD. Board Change • Nov 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Kathryn Klaber was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Oct 30
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Shareholders have been diluted in the past year (6.1% increase in shares outstanding). Recent Insider Transactions • Sep 27
Co-Founder recently bought US$85k worth of stock On the 24th of September, Robert Hutson bought around 8k shares on-market at roughly US$11.28 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Robert's only on-market trade for the last 12 months. Upcoming Dividend • Aug 23
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 30 August 2024. Payment date: 27 September 2024. Payout ratio is a comfortable 58% and the cash payout ratio is 87%. Trailing yield: 9.4%. Within top quartile of American dividend payers (4.4%). Higher than average of industry peers (4.1%). New Risk • Aug 21
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Reported Earnings • Aug 18
First half 2024 earnings: EPS and revenues miss analyst expectations First half 2024 results: EPS: US$0.32 (down from US$13.61 in 1H 2023). Revenue: US$348.7m (down 24% from 1H 2023). Net income: US$15.1m (down 98% from 1H 2023). Profit margin: 4.3% (down from 138% in 1H 2023). Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 76%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Aankondiging • Aug 17
Diversified Energy Company PLC (LSE:DEC) completed the acquisition of High-working interest, operated natural gas properties and related facilities located in Texas from Crescent Pass Energy, LLC for approximately $100 million. Diversified Energy Company PLC (LSE:DEC) signed conditional purchase and sale agreement to acquire High-working interest, operated natural gas properties and related facilities located in Texas from Crescent Pass Energy, LLC for approximately $110 million on July 10, 2024. The Acquisition will be funded through a combination of the issuance of approximately 2.4 million new U.S. dollar-denominated ordinary shares direct to Crescent Pass Energy and a senior secured bank facility supported by the acquired assets, along with existing and expanded liquidity from the Diversified Energy Company PLC's recently increased borrowing capacity. The ordinary shares will be subject to a customary commercial lock-up agreement. The expected completion of the transaction is in the third quarter of 2024. Rahul D. Vashi of Gibson, Dunn & Crutcher LLP acted as legal advisor to Diversified Energy Company PLC.
Diversified Energy Company PLC (LSE:DEC) completed the acquisition of High-working interest, operated natural gas properties and related facilities located in Texas from Crescent Pass Energy, LLC for approximately $100 million on August 16, 2024. Consideration for the Acquisition consists of a combination of the issuance of 2,249,650 new US-dollar denominated ordinary shares to the Seller (the “New Shares”) (subject to a customary commercial lock-up agreement), and cash consideration of $71 million New Risk • Aug 16
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Dividend is not well covered by earnings (97% payout ratio). Profit margins are more than 30% lower than last year (21% net profit margin). Aankondiging • Aug 15
Diversified Energy Company plc Declares Interim Dividend in Respect of Second Quarter of 2024 for the Three Month Period Ended June 30, 2024, Payable on December 27, 2024 Diversified Energy Company PLC announced that the Board has declared an interim dividend of 29 cents per share in respect of second quarter of 2024 for the three month period ended June 30, 2024. Record Date is November 29, 2024 and Payment Date is December 27, 2024. Aankondiging • Aug 07
Diversified Energy Company PLC to Report First Half, 2024 Results on Aug 15, 2024 Diversified Energy Company PLC announced that they will report first half, 2024 results on Aug 15, 2024 Aankondiging • Jun 08
Diversified Energy Company PLC (LSE:DEC) completed the acquisition of working interests in certain assets operated in the Central Region from Oaktree Capital Management, L.P. Diversified Energy Company PLC (LSE:DEC) entered into a conditional agreement to acquire working interests in certain assets operated in the Central Region from Oaktree Capital Management, L.P. for approximately $410 million on March 19, 2024. Under the transaction, Diversified Energy will acquire Oaktree’s proportionate interest in the previously announced Indigo, Tanos III, East Texas, and Tapstone acquisitions (the “Assets”) for an estimated gross purchase price of $410 million (approximately $386 million net), which includes the assumption of approximately $120 million in amortizing notes and a hedge book with a positive mark-to-market of approximately $70 million. The consideration is subject to customary purchase price adjustments and is expected to be satisfied through existing and expanded liquidity, the assumption of Oaktree’s proportionate debt of approximately $120 million associated with the ABS VI amortizing note, and approximately $90 million in deferred cash payments to Oaktree. Additional liquidity for the acquisition may be generated from non-core asset sales and the potential issuance of a private placement preferred instrument. As part of the acquisition, Diversified will acquire certain hedging contracts from Oaktree that will provide ongoing protection despite the recent downturn in the gas market at volumes consistent with the Company’s overall hedging strategy while also maintaining strong long-term cash upside potential from the assets. The acquisition is conditional on the approval of DEC’s shareholders at a general meeting. The acquisition is expected to be accretive. As on May 28, 2024, the transaction is approved by the shareholders of Diversified Energy Company at the Company's General Meeting. Jeremy Kennedy, Brandon Jones of Haynes and Boone, LLP acted as legal advisors to Diversified Energy. Michael Piazza, Rahul Vashi, Adam Whitehouse, Michael Cannon, Doug Horowitz, Christopher Milla, Jesse Myers, and Chris Haynes of Gibson, Dunn & Crutcher LLP acted as legal advisors to Oaktree.Diversified Energy Company PLC (LSE:DEC) completed the acquisition of working interests in certain assets operated in the Central Region from Oaktree Capital Management, L.P. on June 7, 2024. Diversified Energy Company will pay an earnout of $83 million and assumed $120 million associated with the ABS VI amortizing note and other expanded liquidity sources. Upcoming Dividend • May 16
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 23 May 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 18% but the company is paying out more than the cash it is generating. Trailing yield: 21%. Within top quartile of American dividend payers (4.6%). Higher than average of industry peers (3.9%). Aankondiging • May 10
Diversified Energy Company PLC Announces Dividend for the First Quarter Ended March 31, 2024, Payable on September 27, 2024 Diversified Energy Company PLC announced that the Board has declared an interim dividend of 29 cents per share in respect of first quarter ended March 31, 2024. Record Date: August 30, 2024. Payment Date: September 27, 2024. Default Currency: US Dollar. Currency Election Option: Sterling. Last Date for Currency Election: September 6, 2024. Aankondiging • Apr 11
Diversified Energy Company PLC, Annual General Meeting, May 10, 2024 Diversified Energy Company PLC, Annual General Meeting, May 10, 2024, at 09:00 US Eastern Standard Time. Location: at the offices of FTI Consulting, 200 Aldersgate, Aldersgate Street, London United Kingdom New Risk • Mar 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 102% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 102% per year for the foreseeable future. High level of non-cash earnings (43% accrual ratio). Minor Risks High level of debt (213% net debt to equity). Dividend is not well covered by cash flows (226% cash payout ratio). Reported Earnings • Mar 20
Full year 2023 earnings released: EPS: US$16.07 (vs US$14.82 loss in FY 2022) Full year 2023 results: EPS: US$16.07 (up from US$14.82 loss in FY 2022). Revenue: US$806.8m (down 56% from FY 2022). Net income: US$758.0m (up US$1.38b from FY 2022). Profit margin: 94% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Combined production Oil equivalent production: 49.939 MMboe (49.354 MMboe in FY 2022) Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 1.8% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Aankondiging • Jan 30
Diversified Energy Company PLC to Report Fiscal Year 2023 Results on Mar 19, 2024 Diversified Energy Company PLC announced that they will report fiscal year 2023 results on Mar 19, 2024 Aankondiging • Nov 15
Diversified Energy Company plc Declares Interim Dividend for the Third Quarter Ended 30 September 2023, Payable on 28 March 2024 Diversified Energy Company PLC declared interim dividend for the third quarter ended 30 September 2023 of 4.375 cents per share. The dividend will be Payable on 28 March 2024 with Ex-dividend Date of 29 February 2024 and Record Date of 1 March 2024.