| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 97 | 2.5x | 17.8x | Top tier | |
Growth | 97 | 88.0% | 7.1% | Top tier | |
Quality | 96 | 13.2% | 4.5% | Top tier | |
Safety | 42 | 2.1x | 2.6x | Around median | |
Capital Return | 95 | 7.55% | 2.12% | Top tier | |
Momentum | 51 | -17.9% | 2.9% | Around median | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Diversified Energy Company PLC acquires, operates, and optimizes existing oil and gas assets, with a production base exceeding 1.2 billion cubic feet equivalent per day across four basins. Its model is based on acquiring producing wells and applying an integrated operating platform to manage costs and production, while also generating revenue from commodity sales, a portfolio optimization program, non-operated partnerships, and asset management fees. It also owns more than 38 thousand miles of midstream pipelines and uses asset-backed financing structures to reduce the balance-sheet impact of large transactions.
In Q1 FY2026, average production was approximately 1.2 billion cubic feet equivalent per day, while the March 2026 exit rate reached 1.23 billion cubic feet equivalent per day despite the impact of Winter Storm Fern. The company recorded commodity revenue of $556 million, record adjusted earnings before interest, taxes, depreciation, and amortization of $287 million, an adjusted margin of 68%, and adjusted free cash flow of $160 million. The portfolio optimization program generated $101 million in additional proceeds, including approximately $50 million related to the sale of a working interest in acreage within a drilling program operated by Continental Resources.
EDGAR figures show significant volatility in accounting profitability; Diversified Energy generated annual revenue of $1.8 billion and net income of $341.1 million in FY2025, compared with revenue of $794.8 million and a net loss of $104.4 million in FY2024. The FY2026 guidance mix consists of approximately 72% natural gas and 28% liquids, while the Camino assets add a more diversified mix of 55% gas, 30% natural gas liquids, and 15% oil.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average price target of $24.33 and a wide range between $17 and $32. The average and highest targets are above the 52-week range high of $18.90, but the wide spread of targets, net-income volatility, and leverage make the revaluation dependent on achieving FY2026 guidance, completing Camino, and the actual realization of its savings and cash flows.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The company combines optimization of existing assets, acquisitions, and capital-light non-operated partnerships. FY2026 guidance targets production of between 1.17 and 1.21 billion cubic feet equivalent per day and adjusted earnings before interest, taxes, depreciation, and amortization of between $925 million and $975 million. Adjusted free cash flow was $160 million in Q1 FY2026 and then $115 million in Q2 FY2026. Non-operated partnership programs are also targeting a production exit rate of 12,500 barrels of oil equivalent per day in FY2026.
The transaction is valued at $1.175 billion, but Diversified Energy's expected contribution is approximately $210 million and will not include a share issuance, according to the May 7, 2026 announcement. Carlyle will own 60% and Diversified Energy will own 40% of the producing-assets entity, while Diversified Energy will retain all undeveloped acreage. The company will also receive 40% of residual cash flows and fees for debt management and asset operations. The transaction is targeted to close in Q3 FY2026 after satisfying customary closing conditions.
Camino adds approximately 51 thousand barrels of oil equivalent per day from nearly 200 operated wells spread across approximately 101 thousand net acres. Its production consists of 55% gas, 30% natural gas liquids, and 15% oil, increasing the liquids weighting in Diversified Energy's portfolio. The assets' next-twelve-month earnings before interest, taxes, depreciation, and amortization are estimated at approximately $397 million, with reserves of approximately 1.5 trillion cubic feet equivalent. Following the transaction, the company's Oklahoma inventory will reach 1,000 locations, including more than 450 locations that meet its investment criteria at an oil price of $65.
Net debt was approximately $2.7 billion at the end of Q1 FY2026, but the company repaid $92 million of principal debt during the same quarter. Pro forma leverage improved by approximately 20% to 2.2 times, within the target range of between 2.0 and 2.5 times, then reached 2.45 times in Q2 FY2026. Available liquidity was also approximately $529 million at the end of Q1 FY2026. The debt level remains important because the Q2 FY2026 ratio was close to the upper end of the target range.
The company returned approximately $94 million to shareholders through dividends and share repurchases in Q1 FY2026. Since its listing in 2017, dividends and share repurchases have totaled approximately $1.2 billion, while total shareholder returns and principal debt repayments have amounted to approximately $2.3 billion. Management describes the dividend as stable and dependable, while share repurchases are executed selectively when it believes the stock does not reflect the value of the business. The company balances these payments with debt reduction and acquisition funding.
The main risks are oil and gas price volatility, base production decline, and the sensitivity of results to weather events such as Winter Storm Fern in Q1 FY2026. Net debt was also $2.7 billion at the end of that quarter, while leverage reached 2.45 times in Q2 FY2026. Part of the growth thesis depends on closing Camino in Q3 FY2026 and achieving approximately $7 million in operating savings and more than $20 million in general and administrative expense savings. EDGAR results also show net income moving from $748.7 million in FY2023 to a loss of $104.4 million in FY2024 and then a profit of $341.1 million in FY2025, highlighting the volatility of accounting profitability.
