Diversified reports robust 2024 results, eyes strong 2025

Published 17/03/2025, 09:04
Diversified reports robust 2024 results, eyes strong 2025

BIRMINGHAM, Ala. - Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) has announced its operational and final audited results for the year ended December 31, 2024, showcasing a year of strong performance and strategic acquisitions. The company executed approximately $2 billion of acquisitions in a favorable pricing environment and maintained consistent operating costs despite broader industry and inflationary pressures.

Diversified reported an average net daily production of 791 MMcfepd (132 MBoepd) with a December exit rate of 864 MMcfepd (144 MBoepd). The year-end reserves stood at 4.5 Tcfe (747 MMBoe; PV10 of $3.3 billion). Total (EPA:TTEF) Revenue, inclusive of hedges, reached $946 million, supported by $151 million in commodity cash hedge receipts. Operating Cash Flow was announced at $346 million, with a net loss of $87 million, inclusive of non-cash unsettled derivative fair value adjustments.

The company’s Adjusted EBITDA for the year was $472 million, with an Adjusted Free Cash Flow of $211 million. The Adjusted EBITDA Margin was reported at 51%, and the Adjusted Operating Cost per unit was $1.70/Mcfe ($10.22/Boe).

In terms of shareholder returns, Diversified is recommending a final quarterly dividend of $0.29 per share. Over $200 million in debt principal was retired through amortizing debt payments, and $105 million was returned to shareholders, including $21 million in share buybacks.

The company also completed $585 million (gross) in strategic and bolt-on acquisitions during 2024 and retired 202 wells in Appalachia. It anticipates a significant increase in cash flow from Coal Mine Methane environmental credit sales in the next 24 months.

A major step forward was the closure of a transformative $1.3 billion acquisition of Maverick Natural Resources, making Diversified the largest producer in the Western Anadarko Basin and marking its entry into the Permian basin. Over $50 million in annual synergies are expected by the end of 2025 from this acquisition.

For 2025, Diversified forecasts total production between 1,050 to 1,100 Mmcfe/d, with approximately 25% liquids and 75% natural gas. The company plans total capital expenditures of $165 to $185 million, an Adjusted EBITDA between $825 to $875 million, and an Adjusted Free Cash Flow of around $420 million. The leverage target is set between 2.0x to 2.5x, with synergies expected to exceed $50 million.

CEO Rusty Hutson, Jr. expressed confidence in the company’s momentum and its ability to achieve full-year 2025 expectations while executing its capital allocation strategy. The company’s 2024 Annual Report and Notice of AGM have been published on its website and are available for inspection at the National Storage Mechanism. The AGM is scheduled for April 9, 2025.

This report is based on a press release statement from Diversified Energy Company PLC.

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