Diversified Energy Dividends and Buybacks
Dividend criteria checks 3/6
Diversified Energy is a dividend paying company with a current yield of 8.67% that is well covered by earnings. Next payment date is on 30th September, 2026 with an ex-dividend date of 28th August, 2026.
Key information
8.7%
Dividend yield
17.7%
Buyback Yield
| Total Shareholder Yield | 26.3% |
| Future Dividend Yield | 9.0% |
| Dividend Growth | 0.8% |
| Next dividend pay date | 30 Sep 26 |
| Ex dividend date | 28 Aug 26 |
| Dividend per share | n/a |
| Payout ratio | 22% |
Recent dividend and buyback updates
Recent updates
Narrative Update • Jul 10
DEC: Anadarko Basin ABS Funding Will Underpin Future Cash Flow Upside
Analysts have raised their fair value estimate for Diversified Energy from $15.00 to $19.00, citing updated assumptions around discount rates, revenue growth expectations, profit margins, and a higher future P/E multiple. What's in the News for Diversified Energy Diversified Energy completed a roughly $1.175b acquisition of oil and gas assets in Oklahoma's Anadarko Basin, funded primarily by an $895m private issuance of fixed rate asset backed securities through its DP Eagle LLC vehicle, with proceeds also used for liquidity reserves and transaction costs (source: recent news reports).
Narrative Update • Jun 26
DEC: Anadarko Basin Expansion And Buybacks Will Support Future Upside
Analysts have raised their price target for Diversified Energy from $20.50 to about $22.43, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E as key drivers of the revision. What’s in the News for Diversified Energy Diversified Energy and Carlyle's Global Credit platform agreed to acquire a bolt-on portfolio of oil and natural gas properties in the Anadarko Basin of Oklahoma from Camino Natural Resources, with Diversified funding about $210 million through its senior secured bank facility.Seeking Alpha • Jun 08
Diversified Energy: Stronger Numbers, Same Complicated Model
Summary Diversified Energy has improved operationally, with Q1 2026 production, adjusted EBITDA, and free cash flow all showing significant growth. DEC's acquisition-driven scale, particularly from Maverick, Sheridan, and Camino, is enhancing cash flow but increasing business complexity and integration risks. Leverage has decreased to 2.2x net debt/EBITDA, supporting ongoing dividends and buybacks, yet the debt-heavy, acquisition-dependent model remains a key risk. My valuation finds DEC fairly priced near $13–14 per share, with upside capped by market reluctance to pay a premium for complex, debt-laden stories. Read the full article on Seeking AlphaSeeking Alpha • Mar 26
Diversified Energy: Old Wells And Some Leverage Bring Strong Cash Flow
Summary Diversified Energy offers a steady business model with strong cash flow and a 9% dividend yield, supported by extensive hedging and low decline rates. The company’s strategy focuses on acquiring old wells, improving recovery rates, and reducing operating costs, but high debt and environmental liabilities remain concerns. Recent acquisitions, including Maverick Natural Resources, are transformative, promising revenue growth and synergies, but also increasing debt and financing costs. To enhance investor confidence, Diversified should focus on reducing asset retirement obligations, executing consistent operations, and leveraging cash flow for debt reduction and share buybacks. Read the full article on Seeking AlphaSeeking Alpha • Mar 19
Diversified Energy: Incredible Growth Potential With Maverick Natural Resources Acquisition, But Uncertainty Ahead
Summary Diversified Energy Company PLC's hold rating has been maintained due to lower gas prices, rising operating costs, and missed EBITDA margin targets. The Maverick Natural Resources acquisition boosts production and revenue, but uncertainties around cost synergies and commodity prices persist. DEC's hedging strategies and diversified portfolio aim to stabilize cash flow, yet economic slowdown fears and energy market volatility remain concerns. Investors should wait for clearer financial results post-acquisition before considering an upgrade, despite attractive dividend yields. Read the full article on Seeking AlphaSeeking Alpha • Feb 03
Diversified Energy: On A Solid Growth Trajectory Following Acquisitions
Summary I am raising my rating to buy for Diversified Energy Company due to strategic acquisitions poised to boost profitability and operational capacity. DEC's Q3 2024 revenue grew 10.83% YoY to $239.05 million, with a 12.68% increase in adjusted EBITDA and a 32% TTM free cash flow yield. The acquisition of Maverick Natural Resources will expand DEC's presence in the Anadarko and Permian Basins, potentially increasing revenue by 95% and free cash flow by 55%. Despite a 5% YoY revenue decline in Q3 2024, DEC's debt reduction and continued dividend payments underscore its robust financial strategy and long-term value creation. Read the full article on Seeking AlphaSeeking Alpha • Oct 20
Diversified Energy: The Risks Of Asset Retirement Obligations Are Too Great For Investors
Summary Diversified Energy faces substantial well retirement obligations, which are understated, posing significant financial risks if natural gas prices remain low. The derivatives book offers potential upside, but the variability in outcomes and financial risks remain high. Current dividend payments are unsustainable without increasing energy prices, making this stock a high-risk, leveraged bet on future energy market conditions. Read the full article on Seeking AlphaSeeking Alpha • Oct 14
Diversified Energy: 9.6% Yield And Strong Fundamentals Make A Sound Tactical Investment
Summary Diversified Energy Company focuses on acquiring low-decline, cash-flowing wells, avoiding exploration risks and CapEx-intensive developments, making it an attractive cash flow machine. Over the past ~ 5 years, DEC has expanded its free cash flow base in a consistent manner, by conducting M&A and deleveraging the balance sheet. Yet, at the same time, the valuations have gone down. Currently, the TTM EV/EBITDA is below 5x. This renders the dividend yield enticing at ~ 9.6%. In this article, I elaborate on the key reasons why, in my opinion, DEC offers an attractive tactical investment case for especially yield-seeking investors to complement their portfolios. Read the full article on Seeking AlphaSeeking Alpha • Jul 29
Why I Ultimately Decided Against Investing In Diversified Energy Company
Summary Diversified Energy has a unique business model focused on acquiring and optimizing older natural gas wells with potential for growth if commodity prices rise. The company has the most natural gas wells in the country and operates a profitable well retirement business, Next LVL, showing organic growth potential. Recent acquisitions and capital allocation decisions raise concerns about the company's long-term value proposition, leading to a decision to stay on the sidelines for now. Read the full article on Seeking AlphaUpcoming Dividend Payment
Stability and Growth of Payments
Fetching dividends data
Stable Dividend: DEC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: DEC has only been paying a dividend for 8 years, and since then payments have fallen.
Dividend Yield vs Market
| Diversified Energy Dividend Yield vs Market |
|---|
| Segment | Dividend Yield |
|---|---|
| Company (DEC) | 8.7% |
| Market Bottom 25% (US) | 1.4% |
| Market Top 25% (US) | 4.2% |
| Industry Average (Oil and Gas) | 3.4% |
| Analyst forecast (DEC) (up to 3 years) | 9.0% |
Notable Dividend: DEC's dividend (8.67%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: DEC's dividend (8.67%) is in the top 25% of dividend payers in the US market (4.17%)
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (22.2%), DEC's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: DEC is paying a dividend but the company has no free cash flows.
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/12 18:54 |
| End of Day Share Price | 2026/07/10 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
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.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* 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. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Paul Diamond | Citigroup Inc |
| Sanjeev Bahl | Edison Investment Research |
| Simon Scholes | First Berlin Equity Research GmbH |