Diversified Energy is making Oklahoma a larger part of its production strategy as it combines new drilling, acquisitions, asset sales and debt reduction.
The company reported net income of $248 million for the second quarter of 2026, including gains on non-cash unsettled derivatives. Adjusted EBITDA was $240 million, operating cash flow was $89 million and adjusted free cash flow reached $115 million. Capital expenditure totalled $40 million.
Average production was 1,253 MMcfepd, or 209 Mboepd, during the quarter. Production exited June at 1,275 MMcfepd, or 213 Mboepd. Natural gas made up about 71% of total production, with natural gas liquids at 15% and oil at 14%.
Oklahoma is now central to Diversified Energy’s next phase of development. Following the Camino acquisition, the company estimates it has around 450 economic drilling locations in the state. At its planned pace of development, that inventory could support roughly 20 years of activity.
Diversified plans to begin with a one-rig operated drilling programme. This gives the company a measured way to bring new wells online while controlling capital spending and testing the economics of the acquired acreage.
The company is also using non-operated development partnerships to add production without funding the full cost of drilling. Its partnerships with Continental Resources, Mewbourne and a private Northwest Shelf operator are expected to contribute new volumes alongside its operated programme.
Diversified expects production from these development programmes and recent acquisitions to offset about half of the natural decline across its existing assets. The company expects an average contribution of around 12,500 Boepd during 2026 from these activities.
Diversified Energy Company plc (LON:DEC, NYSE: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.
