Diversified Energy (NYSE:DEC) Releases Earnings Results

Key Points

• Diversified Energy reported quarterly EPS of $3.31, far exceeding analysts’ $0.20 consensus estimate, while revenue of $442.30 million fell short of the $489.65 million expectation.
• Shares declined $0.33 to $13.07 following the earnings release. The stock trades near its 52-week low and has a high debt-to-equity ratio of 3.57.
• Analysts maintain a “Moderate Buy” consensus with a $21.17 average price target; seven analysts rate the stock Buy and three rate it Hold.

Diversified Energy (NYSE:DEC - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $3.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $3.11, FiscalAI reports. The firm had revenue of $442.30 million for the quarter, compared to analysts' expectations of $489.65 million.

Diversified Energy Stock Performance

Shares of Diversified Energy stock traded down $0.33 on Wednesday, reaching $13.07. 785,347 shares of the company were exchanged, compared to its average volume of 846,800. Diversified Energy has a 1-year low of $12.33 and a 1-year high of $18.90. The company has a debt-to-equity ratio of 3.57, a quick ratio of 0.47 and a current ratio of 0.47. The company's 50-day moving average is $13.52 and its two-hundred day moving average is $14.43. The firm has a market cap of $945.37 million, a price-to-earnings ratio of 3.71 and a beta of -0.38.

Hedge Funds Weigh In On Diversified Energy

Several large investors have recently bought and sold shares of DEC. EIG Asset Management LLC bought a new position in shares of Diversified Energy during the 4th quarter worth approximately $139,031,000. Ameriprise Financial Inc. acquired a new position in shares of Diversified Energy during the second quarter valued at $53,894,000. Man Group plc bought a new stake in shares of Diversified Energy during the fourth quarter worth approximately $27,463,000. Jane Street Group LLC grew its holdings in Diversified Energy by 496.5% during the 4th quarter. Jane Street Group LLC now owns 1,423,494 shares of the company's stock worth $20,612,000 after acquiring an additional 1,184,858 shares during the period. Finally, Citadel Advisors LLC increased its holdings in Diversified Energy by 47.6% in the third quarter. Citadel Advisors LLC now owns 2,379,205 shares of the company's stock valued at $33,333,000 after purchasing an additional 767,378 shares during the last quarter. Institutional investors and hedge funds own 26.51% of the company's stock.

Analyst Ratings Changes

DEC has been the subject of several recent research reports. Weiss Ratings cut shares of Diversified Energy from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, May 7th. Stephens initiated coverage on shares of Diversified Energy in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $24.00 price target on the stock. Citigroup dropped their price target on shares of Diversified Energy from $19.00 to $16.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Jefferies Financial Group upgraded Diversified Energy to a "hold" rating in a research note on Friday, July 10th. Finally, Zacks Research downgraded shares of Diversified Energy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 7th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $21.17.

About Diversified Energy

Diversified Energy Company PLC NYSE: DEC is an independent oil and natural gas producer focused on the acquisition and optimization of legacy onshore assets in the United States. The company’s portfolio spans thousands of producing wells and extensive leasehold positions across core regions such as Appalachia, the Permian Basin and the Mid-Continent. By targeting mature properties, Diversified Energy seeks to enhance long-term recovery through operational efficiencies and capital discipline.

The company’s business model centers on fee-based infrastructure and midstream services that provide stable and predictable cash flows.

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