D

Diversified Energy

Independent energy producer acquiring mature wells

Overview

Diversified Energy buys mature natural gas and oil wells, focusing on long-life, low-decline assets rather than exploration. It optimizes operations and reduces emissions, then retires wells through its Next LVL Energy subsidiary. Revenue comes from selling gas, NGLs, and oil across its Appalachian Basin and Central US portfolio, supported by midstream pipelines and hedging for stable cash flow. The company differentiates itself by owning a large portfolio of aging wells and offering integrated asset retirement services to manage future obligations, with a goal of steady, long-term cash flow and responsible environmental stewardship.

Significant Headcount Growth

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About Diversified Energy

Simplify's Rating
Why Diversified Energy is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Industrial & ManufacturingEnergy

Company Size

501-1,000

Company Stage

IPO

Headquarters

Hoover, AL

Founded

2001

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What believers are saying

  • November 4, 2026 results showed $256 million EBITDA and $153 million free cash flow.
  • Birch closes in fourth-quarter 2026, lifting production 35% and EBITDA 55%.
  • Oklahoma drilling stayed on schedule, with four wells drilled and completions underway.

What critics are saying

  • Q3 2026 included a $348 million derivatives loss, exposing earnings to hedging shocks.
  • Leverage stood at 2.66 times after the credit facility upsized to $1 billion.
  • An asset-retirement reserve shock consumes liquidity and imperils the Birch close.

What makes Diversified Energy unique

  • Diversified buys mature PDP wells and monetizes them with hedging, infrastructure, and optimization.
  • On September 2, 2026, Birch added 46,000 Midland acres and 480 net wells.
  • Next LVL Energy and Carlyle-backed ABS financing extend the model beyond commodity sales.

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Funding

Total Funding

$4.2B

Above

Industry Average

Funded Over

8 Rounds

Post IPO Debt funding comparison data is currently unavailable. We're working to provide this information soon!
Post IPO Debt Funding Comparison Coming Soon

Benefits

  • Flexible Work Hours

Growth & Insights and Company News

6 month growth

18%

1 year growth

19%

2 year growth

19%
Marcellus Drilling News
Nov 6th, 2026
Diversified 3Q: Appalachian gas prices low, so oil gets the love.

Diversified 3Q: Appalachian gas prices low, so oil gets the love. November 6, 2026 Diversified Energy Company (DEC), the Birmingham, Alabama-based company that built its business by buying up older, lower-producing wells other drillers no longer wanted (many of them conventional wells across Appalachia), released its third-quarter 2026 update this week. On paper, DEC lost $202.2 million in 3Q. In the real world, it threw off $152.7 million in adjusted free cash flow. The gap between the two numbers is hedging. But the bigger story is where DEC is headed. The company that calls itself the largest well owner in the Lower 48 is about to close the biggest deal in its history, and it's for Permian oil, not Appalachian gas. Oh, and DEC is now drilling its own new shale wells. Just not here.

Kalkine Media
Nov 4th, 2026
Diversified Energy Company (DEC) reports Q3 2026 results: $256M Adjusted EBITDA and Birch acquisition on track.

Diversified Energy Company (DEC) reports Q3 2026 results: $256M Adjusted EBITDA and Birch acquisition on track. 04 November 2026 09:18 PM GMT Summarize with AI You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to its research reports, in-depth technical and fundamental research. Learn more Diversified Energy Company (NYSE: DEC, LSE: DEC) has published its financial and operational results for the three months ended 30 September 2026, reporting Adjusted EBITDA of $256 million and total commodity revenue of $470 million. The Birmingham, Alabama-based independent oil and gas producer also confirmed that its pending acquisition of Birch Resources remains on schedule for a fourth-quarter 2026 close, a deal the company states will establish it as a top-15 US publicly listed independent producer by output. Investors will be watching the Birch closing timeline and the company's ability to maintain shareholder returns in a commodity-sensitive environment. Key points. * Diversified Energy Company (NYSE: DEC, LSE: DEC), a US-listed independent oil and gas producer dual-listed in London * Q3 2026 Adjusted EBITDA of $256 million on total commodity revenue of $470 million, with average daily production of 1,189 MMcfepd (198 Mboepd) * Year-to-date shareholder returns of approximately $157 million, comprising $94 million in buybacks and approximately $63 million in fixed dividends; Q3 dividend declared at $0.29 per share * Investors should monitor the fourth-quarter closing of the Birch acquisition and any update to full-year 2026 guidance, which has been reiterated but excludes Birch DEC's Q3 2026 production mix and revenue performance across natural gas, oil and ngls. Diversified delivered average daily production of 1,189 MMcfepd (198 Mboepd) for the third quarter of 2026, with the commodity mix split approximately 72% natural gas, 14% oil, and 14% natural gas liquids. Total commodity revenue reached $470 million for the period. The company reported a net loss of $202 million for the quarter, which the announcement states was inclusive of a $348 million non-cash loss on unsettled derivatives. Adjusted EBITDA of $256 million and Adjusted Free Cash Flow of $153 million are presented as more representative indicators of underlying business performance, with an Adjusted EBITDA margin of 56% for the quarter. Birch Resources acquisition and Permian Basin expansion expected to close Q4 2026. The proposed acquisition of Birch Resources is cited in the announcement as a transformative step that would, on a pro forma basis, establish Diversified as a top-15 US publicly listed independent oil and gas company by production volume. The company states the deal is expected to deliver an estimated 55% increase in Adjusted EBITDA and more than 100% increase in Adjusted Free Cash Flow relative to its 2026 guidance midpoint. Birch brings a vertically integrated position in the Permian Basin, and the announcement confirms that the portion of Birch production related to ABS financing has been hedged ahead of closing. Birch figures are excluded from reiterated full-year 2026 guidance. $157 million returned to shareholders year-to-date as credit facility upsized to $1 billion. Diversified returned approximately $157 million to shareholders in the year to the announcement date, comprising approximately $94 million in share repurchases and approximately $63 million via its fixed dividend, representing an approximate 17% shareholder return yield. The company also repurchased 6,676,753 shares year-to-date through 4 November 2026, representing approximately 9% of shares outstanding. Subsequent to quarter-end, Diversified received approval to upsize its credit facility from $900 million to $1 billion. Total liquidity stood at $506 million as of 30 September 2026, and the leverage ratio was reported at 2.66 times, against a target range of 2.0 to 2.5 times. Oklahoma development programme and Camino asset cash flows advance Diversified's growth pipeline. The announcement confirms that Diversified has completed drilling of the first four wells in its 20-gross-well Oklahoma development programme, with completion activities underway and operations described as on schedule. Additionally, the third quarter marked the first period in which Diversified received cash flows from its 40% ownership in the special purpose vehicle established as part of the Camino acquisition with Carlyle, totalling approximately $8.6 million. This comprised approximately $6.6 million from residual operating cash flow and approximately $2.0 million in management fees, illustrating the company's vertically integrated and fee-generating business model. Full-year 2026 guidance for production of 1,180 to 1,210 MMcfe/d and Adjusted EBITDA of $960 million to $1,010 million has been reiterated. Download Free Report - Explore 3 Stock Ideas & Industry Insights Unlock 3 stock ideas and key industry insights in its free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice. All investments involve risk - consider independent advice before making any investment decisions. Disclaimer:

DirectorsTalk Interviews
Nov 2nd, 2026
Diversified Energy highlights sustainability progress as it marks 25 years.

Diversified Energy highlights sustainability progress as it marks 25 years. Diversified Energy (NYSE/LSE: DEC) has received Highly Commended recognition at the Reuters Global Sustainability Awards for its data-driven sustainability reporting, alongside Silver recognition from the Globee Awards for Achievement in Community Support. The awards coincide with the company's 25th anniversary and highlight its work on emissions reduction, well retirement and community investment. In 2025, Diversified retired 486 wells, established a Methane Slip Task Force and quantified emissions across 100% of its lean-burn engine fleet. It also eliminated or converted more than 1,470 natural gas-driven pneumatic devices, exceeding its target by more than 23%. The company also reported a 99% no-leak rate across its expanded asset portfolio through voluntary leak detection and repair activities. Its methane reporting received Gold Standard recognition under the Oil and Gas Methane Partnership 2.0 framework. Community investment remains another focus. Diversified has contributed more than $6.5 million to community outreach across its operating states. Its internship programme has provided more than 55 students with practical industry experience since 2022, including 15 interns across nine departments in 2025. The company's 2025 Sustainability Report also records $1.8 million in community contributions during the year. Well retirement remains central to its operating model. The report confirms that Diversified retired 388 company-operated wells and 98 third-party wells during 2025, taking its cumulative retirement activity to approximately 1,600 wells. These activities form part of Diversified's broader strategy of acquiring, operating and optimising mature energy assets before responsibly retiring them at the end of their productive lives. Diversified Energy Company plc (LON:DEC, NYSE:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets. * Written by: Amilia Stone Find more news, interviews, share price & company profile here for: * Diversified Energy Company PLC

DirectorsTalk Interviews
Oct 19th, 2026
Diversified Energy strengthens environmental credentials with methane reporting recognition.

Diversified Energy strengthens environmental credentials with methane reporting recognition. Diversified Energy Company has received the 2025 Virginia Energy Gas and Oil Industry Award for Environmental Stewardship from the Virginia Department of Energy, recognising its work on environmental performance and emissions management across its operations. The award follows further recognition of the company's approach to methane emissions reporting, with Diversified retaining Gold Standard reporting status under the United Nations Environment Programme's Oil and Gas Methane Partnership 2.0 (OGMP 2.0). The framework is designed to improve the accuracy and transparency of methane emissions data through measurement-based reporting. For Diversified, these recognitions relate to the management of environmental risks associated with its oil and gas assets. Methane measurement and mitigation have become areas of increased focus across the energy sector, with companies expected to improve the quality of emissions data and demonstrate progress in reducing leaks. Reliable reporting can also help provide stakeholders with a clearer understanding of operational performance. The OGMP 2.0 Gold Standard represents the highest level of recognition within the partnership's reporting framework. Diversified states that its reported emissions are based on direct measurements at source and reconciled with site-level data, rather than relying solely on estimates. The company has achieved this reporting status for five consecutive years, providing an established record of emissions disclosure. Diversified also reports a leak-free operating rate of more than 99% across its operations. It attributes progress in methane management to continued investment in aerial and handheld leak detection, alongside the conversion of pneumatic devices. These measures form part of its approach to identifying potential emissions sources and improving the management of its assets. The company's environmental programme combines monitoring, measurement and mitigation. Direct measurement can help identify emissions that may otherwise be difficult to quantify, while leak detection programmes support the identification and repair of equipment issues. Pneumatic device conversions can also contribute to reducing methane emissions associated with certain operational processes. Diversified Energy Company plc (LON:DEC, NYSE:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets. * Written by: Amilia Stone Find more news, interviews, share price & company profile here for: * Diversified Energy Company PLC

OK Energy Today
Sep 3rd, 2026
Diversified Energy announces $1.8 billion acquisition.

Diversified Energy announces $1.8 billion acquisition. Diversified Energy Company, the Alabama-based company with extensive holdings and operations throughout Oklahoma including a recent $1.1 billion acquisition in the state, announced its $1.8 billion acquisition of Birch Permian Holdings, Inc., an independent oil and gas producer headquartered in Houston, Texas. The acquisition from affiliates of Elliott Investment Management L.P. is considered a strategic expansion of Diversified's Permian footprint, adding a scaled, operated position of proved developed producing ("PDP") assets in the heart of America's most productive oil basin. Rusty Hutson, Jr., Chairman and CEO at Diversified called it an "important milestone" in the company's evolution and long-term growth strategy. "This $1.8 billion acquisition is our largest in the Company's 25-year history. Birch has assembled one of the highest-quality operated asset positions, combining a concentrated footprint in the core of the Permian, substantial production scale, integrated infrastructure, and a track record of delivering predictable, high-margin cash flows. These assets align exceptionally well with our disciplined approach to acquiring and optimizing long-life energy assets and provide a compelling platform for future value creation for our shareholders." He said the acquisition is expected to add about 68 Mboepd of production for the company and also create expanded commercial opportunities. "We believe Diversified's operational expertise, Smarter Asset Management, and Portfolio Optimization Program can further unlock value across this asset base while maintaining the disciplined capital allocation framework that has defined our success." What does it add to Diversified? About 46,000 net mineral acres of commercially attractive core Permian Basin leasehold, 500 gross operated wells of which 75% of wells with 2022 vintage or prior. Just about four months ago, Diversified made a $1.1 billion acquisition of more than 100,000 acres of oil and natural gas properties in Oklahoma's Anadarko basin. The drilling sites were acquired from Denver-based Camino Natural Resources and involved what Diversified called "a bolt-on portfolio of certain oil and natural gas properties." Diversified said the acquisition, in partnership with global investment firm Carlyle's Global Credit platform, provides an additional 100 high-quality undeveloped inventory locations in an active development area, with Diversified owning in excess of 450 locations in Oklahoma, pro forma for the acquisition. Camino will retain its ownership of the Chickasha development area. Diversified said the acquisition is especially notable for the state, as it signals large-scale institutional confidence in the longevity, value, and productivity of Oklahoma's energy assets and basins. It also further expands Diversified's growing operational footprint in the region. In announcing the Permian basin buy, Diversified said the acquired assets are expected to deliver strong, durable free cash flow and potential synergies from their contiguous location within Diversified's existing footprint. Importantly, the Acquisition establishes Diversified as a premier operator of Permian assets, creating a core, concentrated position for potential future consolidation of additional PDP assets as Permian Basin production continues to mature, representing a significant long-term opportunity for growth in PDP consolidation and operations. Diversified expects to become an increasingly significant operator and marketer of oil and natural gas in the United States. Pro forma gross volumes under Diversified Energy's operated control are expected to reach approximately 2.5 Bcfepd (~1.6 Bcfepd net). With the closing of the Acquisition, Diversified believes it will be well-positioned for meaningful commercial opportunities across commodity streams. Diversified explained the $1.8 billion acquisition is being primarily funded through an issuance of an Asset Backed Securitization ("ABS") of approximately $1.5 billion through its partnership with Carlyle's Asset-Backed Finance and Capital Markets teams ("Carlyle"), along with other customary financing sources, including available liquidity under Diversified's revolving credit facility. The Company expects to close the Acquisition during the fourth quarter of 2026, subject to customary closing conditions. Further, Carlyle and Diversified have agreed to expand the scale of their strategic partnership from the original $2 billion framework to a broader collaboration through which the parties may pursue up to $10 billion of potential PDP acquisition opportunities over time, subject to mutual agreement and transaction-specific approvals. Permian Transaction Rationale * Building a Scaled Permian PDP Consolidation Platform: The Acquisition creates a significant PDP asset base in the Permian Basin and establishes Diversified as a scaled operator within the basin. This enhanced operating presence is expected to provide an expanded platform for future consolidation as the Permian matures and an increasing inventory of long-life producing assets becomes available, well-suited to Diversified's PDP-focused acquisition strategy. * High-Quality, Low-Decline Assets with Integrated Infrastructure: Birch provides a geographically dense, mature, predictable production base of 480 net wells with lower decline characteristics, which closely align with Diversified's operating model. The concentrated acreage position is further supported by integrated production and water infrastructure, is expected to provide greater operational control, lower unit costs, and opportunities to capture margin across the value chain. * Accretive Acquisition with Durable, High-Margin Cash Flow: The Acquisition is expected to be immediately accretive on key per-share financial metrics and add approximately $548 million of annualized Adjusted EBITDA [b] from a high-margin asset base. The combination of vertical integration, low operating costs, ~80% EBITDA margins, and a mature production profile is expected to support durable free cash flow generation. * Increases Scale, Expands Commercial Opportunity: The Acquisition, Diversified's largest acquisition to date, will represent another significant expansion in Diversified's scale, increasing production [a] by ~35% and Adjusted EBITDA [b] by ~55%, while bringing pro-forma gross sales volumes from Diversified to ~2.5 Bcfepd. This increased scale will materially enhance Diversified's relevance as a producer and marketer of oil, natural gas, and NGLs, creating opportunities for the Company's in-house marketing organization to optimize pricing, transportation, market access, and commercial arrangements. * EOR Adds a New Lever for Portfolio Optimization and Upside: Birch's existing enhanced oil recovery ("EOR") capabilities provide Diversified with an additional avenue to extend asset lives, improve recoveries, and generate incremental returns from its producing asset base as part of the Company's Portfolio Optimization Program ("POP"). With more than 150 permitted EOR locations and encouraging results from initial pilot programs, Diversified believes these capabilities may provide meaningful upside potential beyond the value attributed to the assets' existing production and cash flows. Jerry Bohnen Jerry Bohnen is the founder and creator of OK Energy Today, which began in 2012. He is an Edward R. Murrow Investigative award winner and has been recognized by other national, regional and state institutions during his 50 years as a broadcast journalist. Contact Jerry at [email protected]

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