Diversified Energy Co DEC

EnergyOil & GasUnited States of America

Last close 13.74 USD on Nov 2, 2026, +0.8% year to date

Quant rating

Quant rating C Rank 76 of 167 in Energy

Growth D 143 of 167
Valuation A 2 of 167
Quality D 150 of 167
Revisions A 5 of 167
Momentum C 109 of 167

Wall Street consensus Buy (1.78)Average target 21.12 USD +53.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 971M
Enterprise value: 3.9B
52-week range: 12.36 – 18.90
3-year range: 10.63 – 18.90
Dividend yield: 8.03%
Beta (5 years): –
Shares outstanding: 70.7M
Next earnings: Nov 16, 2026

About the company

Diversified Energy Company is an energy company focused on natural gas and liquids production, transport, marketing, and well retirement. It has onshore upstream and midstream assets. Its assets are primarily located within the Appalachian and Central regions of the United States. The Appalachian Region spans Pennsylvania, Virginia, West Virginia, Kentucky, Tennessee and Ohio and consists of two productive unconventional shale formations, along with numerous conventional formations. It operates within the Marcellus Shale and the slightly deeper Utica Shale, as well as many conventional formations. Its Central Region includes parts of Texas, Louisiana and Oklahoma, and is home to a number of asset rich natural gas and oil formations. It operates within the Haynesville, Bossier, Cotton Valley, Barnett and Mid Continent plays. It has a Permian asset base with multiple zones in the Northern Delaware Basin. Its subsidiary, Next LVL Energy LLC, is an asset retirement service provider.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,829	757	1,949	1,919	1,008	–
Revenue growth	141.5%	−61.1%	1.5%	90.5%	146.5%	34.9%
EPS (basic, normalized)	4.39	2.69	–	–	–	–
EPS growth	63.4%	–	–	–	–	–
Gross margin	90.9%	85.7%	93.2%	65.2%	54.5%	77.9%
Net margin	18.6%	−13.8%	38.4%	−32.6%	−32.3%	−4.3%
ROE	49.3%	−21.2%	345.7%	−252.8%	−42.4%	15.7%

Balance sheet, last quarter
Cash & short-term investments (mil)	8.2
Current ratio	0.57x
Long-term debt (mil)	2,823
Net debt (mil)	2,933
Total equity (mil)	951
Net debt / equity	3.09x
Net debt / EBITDA	2.42x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,829	+141.5%	2.1x	1,211	+156.6%	3.2x	4.39	+63.4%	3.1x
2026	2,074	+13.4%	1.9x	1,021	−15.7%	3.8x	3.03	−31.0%	4.5x
2027	2,212	+6.7%	1.8x	1,313	+28.6%	3.0x	5.36	+77.0%	2.6x
2028	1,980	−10.5%	2.0x	1,096	−16.5%	3.6x	7.03	+31.2%	2.0x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	2,074	−0.5%	+8.4%	+5.9%	3.03	−0.5%	+45.9%	+112.0%
2027	2,212	−1.5%	+17.2%	+21.3%	5.36	+15.7%	+152.3%	+274.2%
2028	1,980	+7.8%	+9.3%	+14.4%	7.03	+33.0%	+154.2%	+577.1%

Earnings surprises EPS beat in 1 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	FQ-9	FQ-8	FQ-7	FQ-6	FQ-5	FQ-4	FQ-3	FQ-2	Mar 2026	Jun 2026
Sales reported (mil)	–	–	–	–	347	431	389	445	576	504
Sales mean (mil)	–	–	235	258	311	448	416	435	532	496
Surprise	–	–	–	–	+11.5%	−3.8%	−6.6%	+2.3%	+8.2%	+1.5%
EPS reported	–	–	–	–	–	–	–	–	2.24	−1.37
EPS mean	−0.03	0.47	0.15	0.51	0.02	1.12	0.59	0.63	0.33	0.33
Surprise	–	–	–	–	–	–	–	–	+576.7%	−515.8%

Peer comparison Oil & Gas

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
DEC Diversified Energy Co	971M	2.42x	18.6%	1.03x	4.5x	2.6x	3.8x	3.0x
COP ConocoPhillips	176.4B	0.62x	12.8%	2.70x	13.1x	14.1x	5.6x	5.9x
EOG EOG Resources, Inc.	82.8B	0.28x	22.0%	2.60x	8.9x	9.6x	4.8x	5.2x
OXY Occidental Petroleum Corp	60.7B	1.46x	6.3%	1.45x	8.9x	11.8x	4.4x	5.1x
FANG Diamondback Energy, Inc.	55.9B	1.91x	11.0%	1.48x	9.0x	9.9x	5.4x	5.7x
DVN Devon Energy Corporation	53.5B	1.41x	15.4%	1.34x	8.8x	9.1x	4.8x	4.4x
Mean		1.35x	14.3%	1.77x	8.9x	9.5x	4.8x	4.9x
Median		1.44x	14.1%	1.47x	8.9x	9.7x	4.8x	5.1x

Technical analysis

1M+2.4%
3M+4.1%
1Y+17.6%
3Y−6.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Diversified Energy Co, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,829	757	1,949	1,919	1,008	409
Cost of revenue	166	108	133	668	459	321
Gross profit	1,663	649	1,816	1,251	549	87.4
Selling, general & administrative expenses	719	452	438	85.2	59.9	60.7
Research & development	–	–	–	–	–	–
Depreciation/amortization	413	292	273	–	–	–
Interest expense (income), operating	–	–	–	1,759	975	94.4
Unusual expense (income)	−25.4	−9.7	−39.2	78.7	−19.1	9.9
Other operating expenses	48.6	28.5	23.9	0	0	0
Operating income	508	−113	1,120	−671	−467	−77.6
Net interest income (expense)	−210	−137	−131	−101	−50.6	−42.7
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	3.3	2.3	0.4	−27.4	−33.3	−16.4
Net income before taxes	301	−248	990	−800	−551	−137
Provision for taxes	−40.5	−145	239	−179	−226	−113
Minority interest	−0.8	−1.3	−1.7	−4.8	−0.3	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	341	−104	749	−625	−326	−23.5
Extraordinary items	–	–	–	–	–	–
Net income	341	−104	749	−625	−326	−23.5
EBIT, normalized	496	−119	1,082	1,166	489	26.8
EBITDA, normalized	909	173	1,355	1,388	666	144
Basic EPS, normalized	4.39	2.69	–	–	–	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Diversified Energy Co, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	29.7	6.0	3.8	7.3	12.6	1.4
Receivables	408	234	190	297	283	67.0
Total inventory	27.8	9.6	7.8	9.2	9.4	6.3
Prepaid expenses	9.4	9.1	4.0	5.3	5.1	1.7
Other current assets	175	45.2	98.9	35.6	27.1	18.1
Total current assets	650	304	305	354	337	94.5
Property, plant & equipment	5,022	3,295	2,947	3,019	2,944	2,137
Goodwill	–	–	–	–	–	–
Intangibles	3.2	2.9	19.4	21.1	14.1	19.2
Long-term investments	10.0	6.0	–	–	–	–
Note receivable	–	–	–	–	–	1.8
Other long-term assets	484	349	203	437	199	38.0
Total assets	6,169	3,957	3,474	3,831	3,494	2,291
Liabilities
Accounts payable	81.8	35.0	49.5	90.4	61.6	19.2
Payable/accrued	–	–	–	–	–	–
Accrued expenses	196	96.9	105	145	143	30.5
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	259	222	211	280	68.4	70.0
Other current liabilities	539	423	272	616	500	76.9
Total current liabilities	1,076	777	638	1,132	774	197
Long-term debt	2,765	1,524	1,096	1,189	970	666
Minority interest	10.9	11.9	12.6	15.0	16.5	–
Other liabilities	1,333	1,243	1,141	1,648	1,087	541
Total liabilities	5,185	3,557	2,888	3,984	2,847	1,404
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	0.8	14.6	12.9	11.5	11.6	9.5
Additional paid-in capital	1,492	1,146	1,208	1,053	1,053	841
Retained earnings (accumulated deficit)	−508	−759	−533	−1,116	−417	36.0
Treasury stock	–	–	−102	−101	–	–
Other equity	−0.6	−0.9	0	0	0	0
Total equity	984	400	586	−153	647	887
Total liabilities & shareholders' equity	6,169	3,957	3,474	3,831	3,494	2,291

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Diversified Energy Co, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	342	−103	750	−621	−325	−23.5
Depreciation, depletion & amortization	413	292	273	222	168	117
Deferred taxes	–	–	–	–	–	–
Non-cash items	−194	223	−878	674	448	164
Changes in working capital	−96.2	−192	145	112	29.8	−16.0
Cash from operations	465	221	291	388	320	242
Investing activities
Capital expenditures	−185	−52.1	−74.3	−86.1	−50.2	−24.8
Other investing cash flows	−636	−215	−172	−300	−576	−233
Cash from investing	−820	−267	−247	−386	−626	−258
Financing activities
Financing cash flow items	−208	−24.0	−24.2	−265	−53.3	−42.1
Cash dividends paid	−85.0	−83.9	−168	−143	−130	−98.5
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	741	166	125	402	500	156
Cash from financing	448	58.4	−67.4	−6.5	317	15.8
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	92.9	12.3	−22.7	−5.2	11.2	−0.3
Free cash flow	280	169	217	302	270	217

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.