Diversified Energy’s secondary offering prices at $13.75 per share

BIRMINGHAM, Ala. - Diversified Energy Company PLC (LSE:DEC; NYSE:DEC), currently trading at $15.41 with a market capitalization of $1.19 billion, announced Tuesday the pricing of its previously announced secondary offering at $13.75 per ordinary share. The offering consists of 5,713,353 ordinary shares being sold by certain funds managed by EIG, FS/EIG Advisor, LLC, and entities managed by FS/KKR Advisor, LLC. According to InvestingPro data, the company maintains a significant 5.27% dividend yield.

The selling stockholders have granted underwriters a 30-day option to purchase up to an additional 857,002 shares at the same price. Diversified Energy will not receive any proceeds from the transaction as the offering consists entirely of existing shares sold by the selling stockholders. InvestingPro analysis indicates the company maintains a "Fair" overall financial health score, with analysts projecting substantial revenue growth for the current year.

The Diversified Employee Benefit Trust has indicated interest in purchasing 750,000 shares from the underwriters at the public offering price, representing a total consideration of $10,312,500. This transaction constitutes a related party transaction as the initial sellers include funds managed by an affiliate of EIG, which is associated with Diversified director Randy Wade.

The company’s board confirmed it considers the employee benefit trust transaction fair and reasonable for shareholders, based on advice from Stifel Nicolaus Europe Limited.

Mizuho and Raymond James are acting as joint book-running managers and representatives of the underwriters, with Citigroup also serving as a joint book-running manager.

The secondary offering is expected to settle on September 18, 2025, subject to customary closing conditions.

The shares being sold were originally issued by Diversified as consideration for its acquisition of Maverick Natural Resources, LLC, which closed on March 14, 2025.

This article is based on information from a company press release.

In other recent news, Diversified Energy Company PLC has announced an underwritten public secondary offering of 5.7 million ordinary shares. This offering is being managed by certain investment funds under EIG, FS/EIG Advisor, LLC, and FS/KKR Advisor, LLC. Additionally, the selling stockholders have plans to grant underwriters a 30-day option to purchase up to an additional 857,002 shares at the public offering price, less underwriting discount. In another development, Mizuho has raised its price target for Diversified Energy to $27.00 from $23.00, maintaining an Outperform rating. This adjustment follows the company’s $550 million acquisition of Canvas Energy, which is expected to significantly impact cash flow. Furthermore, KeyBanc has reiterated an Overweight rating and a $17.00 price target for Diversified Energy. This follows the announcement of a $2 billion asset-backed securities funding agreement with Carlyle’s structured credit group.

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