Diversified Energy (DEC) Company Overview

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%.

DEC, ERO and EVH have been added to the Zacks Rank #5 (Strong Sell) List on January 30, 2024.

DEC's acquisition of Maverick Natural Resources is expected to bring the total production of the combined company to 59,000 barrels of oil equivalent per day.

As it announces the largest acquisition in its history, Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) is a ‘buy', according to stockbroker Peel Hunt. DEC has not been a stranger to deal-making as M&A has driven much of its growth since it floated on the London Stock Exchange in 2016 – when it came to market with a $50 million raise and a £69 million market cap.

Financial and Strategic Accretive Acquisition Provides Opportunity for 95% Increase in Revenue, Enhanced Margins, Expense Synergies, and 55% Increase in Free Cash Flow Unique & Differentiated Business Model Offers Reliable Production, Multi-Basin Commodity Diversification, and Strong Hedging Program that Enables Consistent Free Cash Flows Significant Operating Scale Provides Optionality for Organic Growth Through Established Low-Risk, High-Return Development Partnership Expands Proven Roll-Up Model to the Permian Basin and Forges Partnership with Energy Focused Investor EIG Modern Field Management Philosophy of Experienced Diversified Team Well Positioned to Leverage Technology, Capture Synergies and Unlock Portfolio Value BIRMINGHAM, AL / ACCESS Newswire / January 27, 2025 / Diversified Energy (LSE:DEC)(NYSE:DEC), today announced that it has entered into a definitive agreement to acquire Maverick Natural Resources, a portfolio company of EIG for total consideration of approximately $1,275 million. The Acquisition combines two complementary asset packages, pairing high-quality Proved Developed Producing weighted production assets with the lowest corporate decline and capital intensity among peers.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has struck a deal to acquire Maverick Natural Resources for $1.28 billion, adding assets in the Western Anadarko and Permian basin, to increase its revenue base by some 95%. The London-listed firm said the deal adds immediate scale, increases liquids production, and creates a combined company with long-term free cash flow generation, superior unit cash margins, and a compelling sustainability profile.

At the end of the last trading day, Diversified Energy Company PLC (DEC) was priced at $16.24, which represents a decrease of 0.61% compared to the previous day.

DEC announces acquisition of producing and midstream assets from Summit Natural Resources for $45M in the Appalachian basin.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced its first acquisition of 2025, picking up natural gas assets in West Virginia and Alabama for $45 million. The assets, gas fields and related facilities, are being acquired from Summit Natural Resources – the package includes coal mine methane, with opportunities to extend production in the future.