Diversified Energy Defies Volatility with Robust Q2 Performance and Strategic Expansion

Amid a turbulent market, Diversified Energy (LSE: DEC, NYSE:DEC) announced impressive financial results for the first half of 2025, driven by a strategic acquisition and a significant partnership. The company reported a substantial increase in both revenue and production, reinforcing its position as a key player in natural gas and liquids.

In its second-quarter earnings, Diversified reported revenue of approximately $510 million, with a stunning first-half revenue of $804 million. This growth was bolstered by the successful integration of Maverick Natural Resources. The company's adjusted EBITDA for Q2 was $280 million, bringing the total for the first half of the year to $418 million. The adjusted EBITDA margin was 63% for the quarter, and daily production averaged more than 1.15 Bcf per day in Q2. Free cash flow for the quarter was $88 million, even after a deduction of around $25 million for one-time transaction-related costs.

Diversified Energy continues its disciplined capital allocation, returning approximately $105 million to shareholders in the first half of 2025. A quarterly interim dividend of 29 cents per share for Q2 2025 has been declared, with a record date of December 1, 2025, and a payment date of December 31, 2025. A key strategic achievement was the partnership with The Carlyle Group, which provides a non-dilutive funding stream of up to $2 billion for future acquisitions. The company's total proved reserves have also grown by over 60% since the end of 2024.

CEO Robert Russell Hutson Jr. noted that while the company faces market volatility and its stock price is currently perceived as undervalued, the fundamentals remain strong. Diversified Energy maintains its full-year 2025 guidance for production, adjusted EBITDA, and free cash flow, highlighting confidence in its operational strategy and ability to generate reliable shareholder value.