Asia FX steady as Fed, BOJ rate decisions loom; US-China talks in focus
BIRMINGHAM, Ala. - Diversified Energy Company PLC (LSE:DEC, NYSE: DEC) has reported a robust first quarter for 2025, demonstrating significant growth in revenue and operational efficiency. The company attributes this performance to the recent acquisition of Maverick Natural Resources and disciplined operational practices. Despite only two weeks of Maverick’s contribution in the quarter, the company has nearly doubled its revenues and free cash flow.
Diversified Energy’s production exit rate in March 2025 was 1,149 MMcfepd (192 Mboepd), with an average first-quarter daily production of 864 MMcfepd (144 Mboepd). This production level is consistent with the company’s established shallow decline profile and includes the impact of Maverick’s operations since March 14, 2025.
The company’s total revenue, inclusive of settled hedges, reached $295 million, with an operating cash flow of $132 million. However, a net loss of $337 million was reported, which included non-cash unsettled derivative adjustments. Adjusted EBITDA for the first quarter stood at $138 million, with a free cash flow of $62 million. The Adjusted EBITDA Margin was 47%.
In terms of shareholder returns, Diversified has declared a first-quarter dividend of $0.29 per share and repurchased approximately 1.5 million shares year-to-date in 2025, representing around $19 million. Overall, the company has returned over $59 million to shareholders through dividends and share repurchases.
Diversified Energy has also made strides in environmental initiatives. The company, in collaboration with Next (LON:NXT) LvL Energy and West Virginia regulatory agencies, has modernized well retirement procedures, retiring a total of 76 wells by the end of the first quarter.
Looking ahead, Diversified Energy is on track to achieve its full-year 2025 guidance, expecting to realize significant operational synergies from the Maverick acquisition. The company anticipates exceeding its annualized synergy target of over $50 million.
Rusty Hutson, Jr., CEO of Diversified, expressed confidence in the company’s strategy and its ability to navigate through volatile market conditions. He emphasized the focus on integration and cost-saving initiatives, which are expected to expand margins over time.
The company’s outlook for the remainder of the year remains positive, with production guidance set between 1,050 and 1,100 Mmcfe/d and a leverage target between 2.0x to 2.5x. The projected adjusted EBITDA is between $825 and $875 million, with an estimated free cash flow of approximately $420 million.
Diversified Energy will host a conference call to discuss the first-quarter trading statement, with the details available on the company’s investor relations website. This news article is based on a press release statement from Diversified Energy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.