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Diversified Energy Company plc (DEC)



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Upturn Advisory Summary
08/28/2025: DEC (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $17.5
1 Year Target Price $17.5
7 | Strong Buy |
1 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 9.16% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.08B USD | Price to earnings Ratio - | 1Y Target Price 17.5 |
Price to earnings Ratio - | 1Y Target Price 17.5 | ||
Volume (30-day avg) 9 | Beta 0.06 | 52 Weeks Range 9.70 - 16.67 | Updated Date 08/2/2025 |
52 Weeks Range 9.70 - 16.67 | Updated Date 08/2/2025 | ||
Dividends yield (FY) 8.28% | Basic EPS (TTM) -1.84 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Earnings Date
Report Date 2025-08-11 | When After Market | Estimate - | Actual - |
Profitability
Profit Margin -11.63% | Operating Margin (TTM) -11.36% |
Management Effectiveness
Return on Assets (TTM) -0.91% | Return on Equity (TTM) -16.37% |
Valuation
Trailing PE - | Forward PE 3.66 | Enterprise Value 2559392758 | Price to Sales(TTM) 1.43 |
Enterprise Value 2559392758 | Price to Sales(TTM) 1.43 | ||
Enterprise Value to Revenue 3.22 | Enterprise Value to EBITDA 15.04 | Shares Outstanding 59347900 | Shares Floating 44962432 |
Shares Outstanding 59347900 | Shares Floating 44962432 | ||
Percent Insiders 24.91 | Percent Institutions 59.53 |
Upturn AI SWOT
Diversified Energy Company plc
Company Overview
History and Background
Diversified Energy Company plc, formerly known as Diversified Gas & Oil, was founded in 2001. It focuses on acquiring and optimizing producing natural gas and oil wells in the Appalachian Basin and Central Region of the United States. They have grown through acquisition of mature, long-life assets.
Core Business Areas
- Production: Operation and optimization of producing oil and natural gas wells.
- Midstream: Gas gathering and compression activities related to existing production.
- Well Plugging and Asset Retirement: A growing area of focus is plugging and abandonment of old wells both those owned and contracted services to other companies.
Leadership and Structure
Rusty Hutson Jr. serves as the Chief Executive Officer. The company has a board of directors and operates through a structured management team responsible for different operational areas.
Top Products and Market Share
Key Offerings
- Natural Gas: Diversified Energy's primary product is natural gas. They own and operate thousands of producing wells. Market share data is difficult to pinpoint exactly but production averages around 900 MMcfepd. Competitors are numerous smaller operators in the regions where they operate as well as larger integrated oil and gas companies.
- Oil: Diversified also produces oil, although it represents a smaller portion of their overall production. Market share data is difficult to pinpoint exactly but production averages around 25,000 bpd. Competitors are numerous smaller operators in the regions where they operate as well as larger integrated oil and gas companies.
Market Dynamics
Industry Overview
The oil and gas industry is cyclical and subject to commodity price volatility. There is increasing pressure to reduce emissions from methane leaks from older wells which are Diversified's primary holdings. Demand for natural gas is strong.
Positioning
Diversified Energy positions itself as a reliable operator of mature, low-decline wells. Their competitive advantage lies in their expertise in optimizing production from these assets and a focus on cost control.
Total Addressable Market (TAM)
The TAM for natural gas and oil in the US is in the hundreds of billions of dollars. Diversified Energy captures a small but significant portion of this market through its focused acquisition strategy.
Upturn SWOT Analysis
Strengths
- Proven acquisition strategy
- Low-decline production profile
- Operational expertise in mature wells
- Strong cash flow generation
- Hedging strategies to lock in revenue.
Weaknesses
- High debt levels
- Exposure to commodity price fluctuations
- Asset retirement obligations (ARO)
- Negative public perception of methane emissions.
Opportunities
- Further acquisitions of mature assets
- Expansion into new regions
- Increased focus on well plugging services for third parties
- Leveraging carbon capture technologies
- Benefit from increased natrual gas demand
Threats
- Declining commodity prices
- Increased regulatory scrutiny on methane emissions
- Rising interest rates
- Competition from other acquirers
- Environmental activist opposition
Competitors and Market Share
Key Competitors
- APA (APA)
- EQT Corporation (EQT)
- Southwestern Energy Company (SWN)
Competitive Landscape
Diversified Energy competes with other operators in the Appalachian and Central regions. Their competitive advantage is their expertise in low-decline well operations. However, they have high debt.
Major Acquisitions
Tanager Energy
- Year: 2023
- Acquisition Price (USD millions): 216
- Strategic Rationale: Consolidates position in the Central Region.
Oaktree Capital Management's Appalachia Assets
- Year: 2021
- Acquisition Price (USD millions): 575
- Strategic Rationale: Increased production and reserves in the Appalachian Basin.
Growth Trajectory and Initiatives
Historical Growth: Diversified Energy's historical growth has been primarily driven by acquisitions. They have consistently added new assets to their portfolio. Recent years slowed acquisition cadence.
Future Projections: Future growth is dependent on continued acquisition opportunities and successful optimization of existing assets. Analyst estimates vary based on commodity price assumptions. Analysts expect slow production decline.
Recent Initiatives: Recent initiatives include focusing on environmental stewardship through well plugging programs, strategic hedges, and reducing debt.
Summary
Diversified Energy's strength lies in its established operational expertise in managing mature wells and a history of successful acquisitions. However, the company faces challenges stemming from high debt levels, the need to manage environmental impact, and volatility in commodity prices. Successful debt reduction and environmental mitigation are keys to the company's ability to continue operations. Continued profitability with reduced acquistions will be key to future value.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Company Investor Relations
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on thorough research and consultation with a qualified financial advisor. Data is subject to change and may not be entirely accurate.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Diversified Energy Company plc
Exchange NYSE | Headquaters Birmingham, AL, United States | ||
IPO Launch date 2023-12-18 | Co-Founder, CEO & Director Mr. Robert Russell Hutson Jr. | ||
Sector Energy | Industry Oil & Gas Integrated | Full time employees 1589 | Website https://www.div.energy |
Full time employees 1589 | Website https://www.div.energy |
Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. The company was founded in 2001 and is headquartered in Birmingham, Alabama.

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