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Diversified Energy Company (NYSE:DEC) has completed its acquisition of Canvas Energy Inc., the company announced in a press release filed with the Securities and Exchange Commission. The transaction closed on Monday, with Diversified acquiring all outstanding shares of Canvas Energy. The $1.14 billion market cap company, which currently trades at $14.74 per share, has shown strong revenue growth of 64.19% over the last twelve months.
Under the terms of the merger agreement, Diversified Energy paid approximately $495 million in cash and issued 3,720,125 shares of its common stock to the former owners of Canvas Energy. The newly issued shares were provided as part of the overall consideration for the acquisition. Despite not being profitable over the last twelve months, InvestingPro data shows analysts expect the company to return to profitability this year.
The company stated that the issuance of these shares was conducted as a private transaction and relied on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.
Diversified Energy also disclosed that it intends to file the required financial statements for Canvas Energy, as well as pro forma financial information related to the acquisition, by amendment to its current report within 71 calendar days of the filing date.
Diversified Energy’s common stock is listed on the New York Stock Exchange under the symbol DEC.
All information in this article is based on the company’s statement in a press release filed with the SEC.
In other recent news, Diversified Energy Company PLC reported its third-quarter financial results, revealing an earnings per share (EPS) of $0.5592, which did not meet the analyst expectation of $0.6649. The company’s revenue also fell short of projections, coming in at $388.72 million compared to the forecasted $445.44 million. Despite these financial misses, Diversified Energy’s stock experienced a notable increase, indicating positive investor sentiment. In addition to the earnings report, William Blair initiated coverage on Diversified Energy with an Outperform rating. The research firm praised Diversified Energy’s unique approach to acquiring and maximizing value from mature assets. These developments reflect recent strategic moves and operational performance that have captured investor attention.
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