Diversified Energy sharpens its playbook as acquisitions reshape the cash flow profile

Diversified Energy Company

Diversified Energy has moved into 2026 with a clearer sense of scale and a more defined set of levers for investors to watch, after reporting a record set of full-year numbers for 2025 and outlining another bolt-on purchase designed to deepen its position in East Texas.

For 2025, the company reported total revenue of $1,829 million alongside net income of $342 million. Adjusted EBITDA reached $956 million and adjusted free cash flow was $440 million after $55 million of transaction costs, while capital expenditure totalled $185 million. Production averaged 1,086 MMcfepd during the year, with a fourth-quarter exit rate of 1,254 MMcfepd.

Alongside the results, Diversified announced an agreement to acquire natural gas properties and related facilities in East Texas from Sheridan Production for $245 million in cash, expected to close in the second quarter of 2026 subject to customary conditions. The company expects the assets to add around 62 MMcfed of net production in 2026, with an estimated annual decline rate of about 6% and a production mix of roughly 72% natural gas.

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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