Diversified Energy Company plc (LON:DEC, NYSE: DEC) has announced the following operational and financial results for the quarter ended September 30, 2025.
Third Quarter 2025 Results
- Production exit rate(a): 1,144 MMcfepd (191 Mboepd)
- Average production: 1,127 MMcfepd (188 Mboepd)
- Production volume mix (natural gas, NGLs, oil): 74% / 13% / 13%
- Total Revenue (including settled hedges)(d): $500 million
- Operating Cash Flow: ~$166 million
- Adjusted EBITDA(b): ~$286 million; Record quarterly result
- Adjusted Free Cash Flow(c): ~$144 million after ~$9 million of nonrecurring costs
- Revenue per unit(d): $4.82/Mcfe ($28.92/Boe)
- Adjusted cost per unit(e): $2.08/Mcfe ($12.48/Boe)
- 2025 Guidance: Raised Adjusted EBITDA ~7% and Adjusted Free Cash Flow ~5%
Strong Financial and Operational Metrics
| 3Q25 | 3Q24 | YoY % Change | 9mo Ended Sep. 30, ’25 | 9mo Ended Sep. 30, ’24 | YoY % Change | |
| Production (Mmcfe/d) | 1,127 | 829 | 36% | 1,048 | 774 | 35% |
| Production volume mix | ||||||
| Natural gas | 74% | 84% | 76% | 84% | ||
| NLGs | 13% | 12% | 13% | 12% | ||
| Oil | 13% | 3% | 11% | 3% | ||
| Total Revenue(d) (millions) | $500 | $244 | 105% | $1,304 | $692 | 88% |
| Adj. EBITDA(b) (millions) | $286 | $115 | 149% | $704 | $333 | 111% |
| Adj. FCF(c) (millions) | $144 | $56 | 157% | $296 | $158 | 87% |
Financial Strength and Shareholder Returns
- 3Q25 dividend: $0.29 per share declared
- Shareholder returns: Over $146 million returned YTD via dividends and repurchases(f)
- Share repurchases: ~5.1 million shares repurchased YTD (~7% of current outstanding shares), totaling ~$61 million(f)
- Liquidity: ~$440 million consisting of undrawn credit facility capacity and unrestricted cash
- Leverage ratio: 2.4x Net Debt to Adjusted EBITDA; ~20% improvement from YE2024
- Consolidated debt consists of ~70% in non-recourse, amortizing ABS notes
- ABS debt reduction: retired ~$203 million in principal during first three quarters of 2025
Strategic Execution and Transformational Growth
Mountain State Plugging Fund & Next LVL Energy
- Groundbreaking partnership to establish the nation’s FIRST financial assurance fund dedicated to retirement of DEC owned wells (~21,000) in the state of West Virginia. Since establishment of DEC’s well service company, Next Level Energy in 2022, Diversified has retired ~1,200 wells
Canvas Energy Acquisition
- Highly synergistic with significant operational overlap in DEC’s core Oklahoma operating area
- Tangible opportunity for portfolio optimization potential from undeveloped acreage and added highly valuable, multi-decade cash generating reserves
- Utilizing Carlyle strategic funding partnership and on track to close in 4Q 2025
Oil & Gas Methane Partnership (OGMP) Achievement
- Gold Standard Reporting and marks fourth consecutive year of recognition for protocol based on a comprehensive, measurement-based framework for methane detection and mitigation
Unlocking Value Through Portfolio Optimization
- Portfolio Optimization Program (“POP”)
- Realized an additional ~$74 million from non-core asset and leasehold divestitures in 3Q, bringing year-to-date proceeds up to ~$144 million
- Appalachian Compressor Station
- $500,000 margin-enhancing acquisition, which was identified and integrated by our field team, has lead to over $3 million per year in run-rate cost savings including incremental CMM credits
Rusty Hutson, Jr., CEO of Diversified Energy, commented:
“I am very pleased to report that our year-to-date results have exceeded our plans and our teams have continued to perform with operational focus and excellence. Our growing portfolio of high-quality assets continued to deliver exceptional results this quarter, generating a year-over-year increase of approximately 105% in revenue(d) and 157% in free cash flow(c), demonstrating Diversified’s ability to generate substantial value in volatile markets. This performance reflects the strength of our business model, the disciplined approach to acquire assets, the commitment to our optimization strategy, the consistency of our operational execution, and our ability quickly and efficiently integrate acquisitions to capture synergies and enhance margins.
Importantly, we also delivered on our leverage target goal ahead of schedule, ending the quarter with a net debt-to-adjusted EBITDA leverage ratio of approximately 2.4x. Significant strategic work over the last few years has built us into a company with higher growth prospects, a robust cash flow profile, and solid footing to deliver on our capital allocation framework. This progress has enabled us to strengthen our commitment to shareholders with a record year-to-date return of capital through dividends and share repurchases of approximately seven percent of our current shares outstanding.
The strength of our underlying business, our strategy, and our capabilities, coupled with our strategic partnership with the Carlyle Group, has allowed us to execute our disciplined inorganic growth through an accretive acquisition strategy with the recently announced agreement to purchase Canvas Energy. We believe the strong fit with our existing Oklahoma assets, our differentiated scale, and vertical integration will drive attractive financial returns. Our established acquisition integration playbook, the execution of which allowed us to complete both field-level and corporate-level integration of Maverick ahead of schedule, creates high confidence in our ability to execute the integration of Canvas. We remain well-positioned with strong liquidity and further balance sheet optionality for a robust funnel of potential high-quality opportunities.
Looking ahead, given our momentum on synergy capture, numerous portfolio optimization opportunities, and strong third-quarter performance, we are raising our financial guidance ranges for fiscal year 2025 for both adjusted EBITDA and Free Cash Flow. In addition, we continued to believe that our proposed redomestication to the United States and the change in our primary listing to the New York Stock Exchange, which includes full SEC reporting for domestic issuers beginning with year-end 2025 results, will offer several potential benefits that are in the best interest of all shareholders.
With outstanding performance across our platform, Diversified is well-positioned to thrive as a proven portfolio manager of cash generating energy assets in today’s evolving corporate landscape. We are proud to be the Right Company at the Right Time, delivering essential energy while creating long-term value for all stakeholders.”
Operations and Finance Update
Production
The Company recorded exit rate production in September 2025 of 1,144 MMcfepd (191 Mboepd)(b) and delivered 3Q25 average net daily production of 1,127 MMcfepd (188 Mboepd). Net daily production for the quarter continued to benefit from Diversified’s peer-leading, shallow decline profile.
Margin and Total Cash Expenses per Unit
Diversified delivered 3Q25 per unit revenues of $$4.82/Mcfe ($28.92/Boe) and Adjusted EBITDA Margin(a) of 66% (74% unhedged). The Company’s per unit expenses are anticipated to improve as the Company implements its playbook to achieve sustainable synergies and cost savings.
| 3Q25 | 3Q24 | |||||
| $/Mcfe | $/Boe | $/Mcfe | $/Boe | |||
| Average Realized Price | $3.98 | $23.88 | $2.94 | $17.64 | ||
| Other Revenue | $0.13 | $0.78 | $0.14 | $0.84 | ||
| Total Revenue & Divestitures(d) | $4.82 | $28.92 | $3.20 | $19.20 | ||
| Lease Operating Expense | $1.18 | $7.08 | $0.77 | $4.62 | ||
| Production taxes | $0.22 | $1.32 | $0.10 | $0.60 | ||
| Midstream operating expense | $0.20 | $1.20 | $0.23 | $1.38 | ||
| Transportation expense | $0.26 | $1.56 | $0.32 | $1.92 | ||
| Total Operating Expense | $1.86 | $11.16 | $1.42 | $8.52 | ||
| Employees, Administrative Costs and Professional Fees(g) | $0.22 | $1.32 | $0.28 | $1.68 | ||
| Adjusted Operating Cost per Unit(e) | $2.08 | $12.48 | $1.70 | $10.20 | ||
| Adjusted EBITDA Margin(b) | 66% | 48% | ||||
Full Year 2025 Outlook
The Company is increasing its previously announced Full Year 2025 guidance following the recently completed quarter. Specifically, Diversified has raised its range on Adjusted EBITDA and increased its target for Adjusted Free Cash Flow. The table below outlines these adjustments.
| 2025 Guidance (Original) | 2025 Guidance (Updated) | |
| Total Production (Mmcfe/d) | 1,050 to 1,100 | 1,050 to 1,100 |
| % Liquids | ~25% | ~25% |
| % Natural Gas | ~75% | ~75% |
| Total Capital Expenditures (millions) | $165 to $185 | $175 to $185 |
| Adj. EBITDA(1)(millions) | $825 to $875 | $900 to $925 |
| Adj. Free Cash Flow(1)(millions) | ~$420 | ~$440 |
| Leverage Target | 2.0x to 2.5x | 2.0x to 2.5x |
| Combined Company Synergies (millions) | ~$60 | ~$60 |
(1) Includes the value of completed and anticipated cash proceeds for 2025 land sales.
The Company includes Adjusted EBITDA and Adjusted Free Cash Flow in the Company’s Full Year 2025 Outlook. Adjusted EBITDA and Adjusted Free Cash Flow are non-IFRS financial measures and have not been reconciled to the most comparable IFRS financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable IFRS measures.
Conference Call Details
Diversified Energy Company will host a conference call tomorrow, Tuesday, November 4, 2025, at 8:30 AM EST 1:30 PM GMT to discuss the 3Q25 Results and will make an audio replay of the event available shortly thereafter.
Conference Details
| US (toll-free) | 1-877-836-0271 / +1 201-689-7805 |
| UK (toll-free) | +44 (0)800 756 3429 |
| Web Audio | https://www.div.energy/news-events/ir-calendarevents |
| Replay Information | https://ir.div.energy/financial-info |
