Diversified Energy Company
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Diversified Energy Company (DEC) investor relations material

Diversified Energy Company H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary27 Feb, 2026

Executive summary

  • Achieved record operational and financial results in 2025, surpassing guidance for Adjusted EBITDA and free cash flow, driven by transformative acquisitions and portfolio optimization.

  • Integrated ~$2 billion in accretive acquisitions, including Maverick Natural Resources, Canvas Energy, and announced Sheridan Production Partners deal.

  • Marked 25th anniversary with NYSE primary listing, US incorporation, and enhanced access to US capital markets.

  • Maintained disciplined capital allocation, systematic debt reduction, and robust shareholder returns.

Financial highlights

  • 2025 revenue reached $1.83 billion (up 142% YoY), Adjusted EBITDA $956 million (up 103% YoY, 58% margin), and net income $342 million (up 432% YoY), all exceeding guidance.

  • Adjusted free cash flow was $440 million (up 110% YoY), including $55 million in transaction costs.

  • Operating cash flow totaled $465 million; capital expenditures were $185 million.

  • Net debt at year-end was $2.8 billion, leverage improved by ~23% to 2.3x net debt/EBITDA.

  • Liquidity stood at $577 million, supporting ongoing acquisitions and operations.

Outlook and guidance

  • 2026 guidance: production 1,170–1,210 MMcfepd, Adjusted EBITDA $925–$975 million, free cash flow ~$430 million, and capital expenditures $135–$155 million.

  • Leverage target maintained at 2.0x–2.5x.

  • Expects continued operational synergies, portfolio optimization, and strong cash generation.

  • Asset sales guidance for 2026 is $100 million, with a normalized run rate of $40–50 million post-2026.

  • Non-op partnerships expected to offset about half of net production decline in 2026, with potential for further expansion.

Detail 2026 per unit cost reduction strategy
How does Non-Op capex impact future decline rates?
Prioritize debt reduction vs. share repurchases
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Q1 202612 May, 2026
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Frequently asked questions

Diversified Energy Company PLC is an independent energy company engaged in the acquisition, production, and management of natural gas and oil assets. The company focuses on developing mature, long-life hydrocarbon fields, with operations aimed at maximizing production efficiency and sustainability. The company is headquartered in Birmingham, United Kingdom, and its shares are listed on the LSE.

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