Diversified Energy Company

LSE:DEC Stock Report

Market Cap: UK£686.0m

Diversified Energy Future Growth

Future criteria checks 0/6

Diversified Energy's revenue and earnings are forecast to decline at 3% and 38.5% per annum respectively. EPS is expected to decline by 44.9% per annum. Return on equity is forecast to be 8.5% in 3 years.

Key information

-38.5%

Earnings growth rate

-44.85%

EPS growth rate

Oil and Gas earnings growth8.0%
Revenue growth rate-3.0%
Future return on equity8.50%
Analyst coverage

Good

Last updated21 Jun 2026

Recent future growth updates

Recent updates

Narrative Update • Jun 23

DEC: Asset-Backed Anadarko Acquisition And Cash Flows Will Support Bullish Repricing

Analysts have adjusted the Diversified Energy price target to £20.85 from £20.72, reflecting revised assumptions on the discount rate, revenue growth, profit margin and future P/E in light of recent mixed research updates from Citi, KeyBanc, Truist and others. Analyst Commentary Recent research on Diversified Energy shows a split tape, but several bullish analysts have highlighted reasons they see room for the stock to re-rate, even as some peers trim price targets.
Narrative Update • Jun 09

DEC: Future Cash Flow Upside From Anadarko Deal And Oil Price Support

The analyst price target for Diversified Energy has been adjusted slightly higher to reflect a fair value of £14.26. Analysts point to recent initiations and target revisions that balance higher assumed discount rates, softer profit margin expectations and a higher future P/E multiple.
Narrative Update • May 26

DEC: Future Cash Flow Upside From Oil Pricing And Margin Resilience

Analysts have raised their average fair value estimate for Diversified Energy from about £11.11 to roughly £14.13 per share, citing recent bullish initiations, mixed but generally supportive price target resets, and updated views on margins and future P/E expectations. Analyst Commentary Recent research on Diversified Energy has leaned constructive overall, with several firms revisiting their price targets and coverage views.
Narrative Update • May 11

DEC: Higher Oil Price Outlook And Cash Flow Visibility Will Support Bullish Repricing

The analyst price target for Diversified Energy has moved from £19.46 to £20.72, with analysts pointing to updated views on revenue growth, profit margins and future P/E assumptions following a mix of new coverage initiations and recent target revisions across the Street. Analyst Commentary Bullish analysts have been active on Diversified Energy, issuing new coverage and resetting price targets based on updated views of the company’s earnings profile, commodity assumptions and valuation framework.
Narrative Update • Apr 23

DEC: Future Cash Flows Will Be Supported By Higher Long Term Oil Prices

Analysts have trimmed the average price target on Diversified Energy by £0.17. This reflects slightly altered assumptions on discount rate, revenue growth and profit margin, despite a broadly constructive set of recent research updates.
Narrative Update • Apr 07

DEC: Future Cash Flow Risk From Equity Issuance And Commodity Sensitivity

The analyst price target for Diversified Energy has increased by £0.18, reflecting updated assumptions for discount rates, long-term profitability and future P/E, alongside recent Street research in which several firms raised their targets and initiated coverage with a positive stance on the shares. Analyst Commentary Recent Street research around Diversified Energy has leaned positive on price targets, but there are still caution flags that matter if you care about entry points, execution risk and how much future growth is already implied in the numbers.
Narrative Update • Mar 24

DEC: Future Cash Flows Will Be Supported By Stronger Oil Price Outlook

Analysts have raised the blended fair value estimate for Diversified Energy to approximately £16.41 from £14.91, reflecting higher Street price targets, including Citi's increase to £17 and Mizuho's to £28, supported by updated oil and gas assumptions and new bullish coverage. Analyst Commentary Recent research shows a clear tilt toward a more constructive view on Diversified Energy, with price targets clustered in the mid to high teens and one outlier at $28.
Narrative Update • Mar 10

DEC: Cautious Outlook And Capital Actions Will Shape Future Cash Flow

The analyst price target for Diversified Energy has been reduced by £0.51 to £10.93, as analysts factor in Citi's recent £2 cut along with more cautious assumptions on revenue growth, profit margins and a higher future P/E multiple. Analyst Commentary Bearish analysts have responded to the recent price target cut, including the recent $2 reduction, by reassessing both valuation and execution risks at Diversified Energy.
Narrative Update • Feb 24

DEC: Future Cash Flows Will Be Supported By Canvas Deal Execution

Analysts have nudged their fair value estimate for Diversified Energy from £14.79 to £14.91, reflecting tweaks to discount rate assumptions and a lower future P/E multiple, even as some recent research, including a reduced Citi price target, has pointed to more cautious sentiment around the shares. Analyst Commentary Recent research activity, including a reset in the price target to a level consistent with more cautious sentiment, shows that analysts are trying to balance valuation support with execution risks for Diversified Energy.
Narrative Update • Feb 09

DEC: Future Cash Flows Will Benefit From Canvas Deal Integration

Narrative update on Diversified Energy The analyst price target for Diversified Energy has been trimmed by $2, as analysts factor in updated fair value estimates, a revised revenue growth outlook, slightly higher expected profit margins, and a higher future P/E multiple following recent model updates around the Canvas Energy acquisition. Analyst Commentary Recent research updates around the Canvas Energy acquisition give a mixed picture, with some analysts focusing on higher medium term earnings power and others trimming valuation assumptions and price targets.
Narrative Update • Jan 26

DEC: Shares Will Benefit From Canvas Deal And Higher Cash Flow Expectations

Analysts recently raised their price target on Diversified Energy to $25 from $23, pointing to the completed Canvas Energy acquisition and the related uplift in forecast FY26 revenue and adjusted EBITDA as key drivers behind the updated view. Analyst Commentary Analysts are updating their views on Diversified Energy now that the Canvas Energy acquisition is folded into forward estimates, with fresh numbers for FY26 revenue and adjusted EBITDA feeding into valuation work and expectations around execution.
Narrative Update • Jan 11

DEC: Canvas Acquisition Synergies Will Drive Future Cash Flow Upside

Analysts have raised their price target on Diversified Energy to $25 from $23, citing higher projected revenue and adjusted EBITDA from the Canvas Energy acquisition as the main factors behind the updated outlook. Analyst Commentary While the higher target price reflects updated revenue and adjusted EBITDA forecasts from the Canvas Energy acquisition, not all commentary around the stock is purely optimistic.
Narrative Update • Dec 26

DEC: Canvas Acquisition And Cash Flow Visibility Will Support Bullish Repricing

Analysts have lifted their price target on Diversified Energy to $25 from $23, citing enhanced FY26 revenue and EBITDA projections following the Canvas Energy acquisition. Analyst Commentary Bullish analysts highlight the recent price target increase to $25 as a reflection of stronger medium term visibility on cash flows and improved confidence in the company’s ability to integrate and optimize the Canvas Energy assets.
Narrative Update • Dec 12

DEC: Canvas Deal And Gas Outlook Will Shape Balanced Risk Reward Profile

Analysts have nudged their price target on Diversified Energy higher to $25 from $23, citing improved long term revenue and margin expectations following the Canvas Energy acquisition and a more favorable gas price outlook. Analyst Commentary Recent research updates reflect a more nuanced stance on Diversified Energy, with supportive long term fundamentals tempered by lingering concerns around valuation sensitivity and execution risk following the Canvas Energy acquisition.
Narrative Update • Nov 27

DEC: Shares Should Benefit From Gas Price Upside And Recent Acquisition

Analysts have lowered their price target for Diversified Energy from $19.31 to $16.38 per share. This adjustment is due to reduced forecasts for revenue growth and profit margins, partly offset by the recent acquisition of Canvas Energy and updated commodity price expectations.
Narrative Update • Nov 13

DEC: Discounted Gas Stocks Will Likely Benefit From Positive Price Trends

Analysts have raised their fair value estimate for Diversified Energy from $18.29 to $19.31 per share. This change is attributed to updated commodity price forecasts and a continued preference for gas-focused exploration and production companies.
Analysis Article • Oct 16

Diversified Energy Company PLC's (LON:DEC) Shares Not Telling The Full Story

Diversified Energy Company PLC's ( LON:DEC ) price-to-sales (or "P/S") ratio of 0.9x might make it look like a buy...
Narrative Update • Sep 11

Regional Data Center Expansion And Electrification Will Boost Appalachian Demand

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.
Analysis Article • Jul 06

Diversified Energy Company PLC (LON:DEC) Shares Could Be 24% Below Their Intrinsic Value Estimate

Key Insights Using the 2 Stage Free Cash Flow to Equity, Diversified Energy fair value estimate is UK£13.86 Diversified...
Analysis Article • May 14

A Piece Of The Puzzle Missing From Diversified Energy Company PLC's (LON:DEC) 25% Share Price Climb

Diversified Energy Company PLC ( LON:DEC ) shareholders are no doubt pleased to see that the share price has bounced...
User avatar
New Narrative • Mar 23

Acquisition And Expansion Will Diversify Revenue Streams And Unlock Untapped Potential

Strategic acquisitions and operational optimizations are expected to enhance revenue, cash flow, and margins by leveraging synergies and expanding the portfolio.
Analysis Article • Nov 17

A Piece Of The Puzzle Missing From Diversified Energy Company PLC's (LON:DEC) 28% Share Price Climb

Diversified Energy Company PLC ( LON:DEC ) shareholders would be excited to see that the share price has had a great...

Earnings and Revenue Growth Forecasts

LSE:DEC - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20281,8101604035945
12/31/20271,9501824656766
12/31/20261,972-34296936
3/31/20261,840504-136548N/A
12/31/20251,611341-197465N/A
9/30/20251,39894-75394N/A
6/30/20251,148-138167449N/A
3/31/2025967-435-89225N/A
12/31/2024795-104-114221N/A
9/30/202480910-96191N/A
6/30/2024699143159398N/A
3/31/2024753451116404N/A
12/31/2023868749-45291N/A
9/30/20231,104850-60383N/A
6/30/20231,402942-194355N/A
3/31/20231,624158-78372N/A
12/31/20221,846-62537388N/A
9/30/20221,704-90283402N/A
6/30/20221,563-1,179129417N/A
3/31/20221,270-75256369N/A
12/31/2021977-326-17320N/A
9/30/2021761-22620273N/A
6/30/2021546-12658226N/A
3/31/2021477-7576234N/A
12/31/2020409-2394242N/A
9/30/202040116114257N/A
6/30/202039356135272N/A
3/31/202041978191276N/A
12/31/201944699N/A279N/A
9/30/2019454170N/A245N/A
6/30/2019463240N/A210N/A
3/31/2019376220N/A149N/A
12/31/2018290201N/A88N/A
9/30/2018189115N/A48N/A
6/30/20188928N/A8N/A
3/31/20186528N/A7N/A
12/31/20174227N/A7N/A
9/30/20173016N/A9N/A
6/30/2017194N/A12N/A
3/31/20171811N/A8N/A
12/31/20161618N/A5N/A
9/30/20161428N/A2N/A
6/30/20161138N/A-1N/A
3/31/2016919N/A-1N/A
12/31/201560N/A-1N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEC's earnings are forecast to decline over the next 3 years (-38.5% per year).

Earnings vs Market: DEC's earnings are forecast to decline over the next 3 years (-38.5% per year).

High Growth Earnings: DEC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DEC's revenue is expected to decline over the next 3 years (-3% per year).

High Growth Revenue: DEC's revenue is forecast to decline over the next 3 years (-3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DEC's Return on Equity is forecast to be low in 3 years time (8.5%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/26 18:09
End of Day Share Price 2026/06/26 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Diversified Energy Company is covered by 17 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul DiamondCitigroup Inc
Sanjeev BahlEdison Investment Research
Simon ScholesFirst Berlin Equity Research GmbH