Diversified Energy delivers strong start with soaring revenues and key acquisition

Diversified Energy Company

Diversified Energy’s performance in the first quarter of 2025 delivered exactly what shareholders hoped for, impressive financial growth paired with strategic execution. The company announced a 79% surge in total revenue, reaching $346.9 million compared to $193.6 million in the same quarter last year. This exceptional increase highlights the strength of its operational model and its ability to capitalise on favourable market conditions.

The company’s adjusted earnings before interest, tax, depreciation, and amortisation rose by 35% to $138.2 million, up from $102.1 million a year ago. Despite significant revenue expansion, Diversified Energy maintained a healthy EBITDA margin of 47%, demonstrating its operational discipline and cost management capabilities.

Investors took special notice of the company’s recent acquisition of Maverick Natural Resources, finalised in March. This move significantly expands Diversified Energy’s portfolio and is expected to contribute meaningfully to full-year earnings. With a nine-month contribution from Maverick anticipated, the acquisition stands as a pivotal step in strengthening the company’s market presence and long-term earnings potential.

Reaffirming its confidence in future performance, the company reiterated its full-year EBITDA guidance of between $825 million and $875 million. This forward-looking statement reflects both strategic clarity and operational strength as Diversified Energy integrates Maverick’s assets into its already robust portfolio.

Shareholder value remains a central focus, with the board maintaining its quarterly dividend at 29 US cents per share. By preserving this consistent payout, the company underscores its financial resilience and commitment to rewarding investors.

Chief Executive Rusty Hutson praised the team’s execution, noting that Diversified Energy had not only navigated a complex macroeconomic landscape but had also strengthened its growth platform with the Maverick acquisition. He highlighted that the company continues to deliver solid results while building long-term value through disciplined operations and enhanced cash flow.

The market responded quickly and positively, with shares climbing 5.4% on the day of the announcement. This investor reaction reflects growing confidence in Diversified Energy’s ability to deliver on its strategic promises while navigating industry volatility.

Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.

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