Investing.com - Financial Markets Worldwide

Diversified Energy stock rises following earnings report

Published 17/03/2025, 11:18
© Reuters.
DEC
0.28%

Investing.com -- Shares of Diversified Energy Company PLC (LON:DEC) climbed 2.5% as the company reported its fourth-quarter earnings.

Despite posting a net loss of $87 million, which missed Visible Alpha consensus estimates for a profit of $68 million, the company’s adjusted EBITDA for the fiscal year 2024 was reported at $472 million, a 2% increase from consensus estimates of $462 million, with a margin of 51%. The loss was primarily attributed to a derivative financial instruments loss of approximately $38 million.

The company’s full-year 2024 average production was down by 4% compared to the third quarter, at 132 thousand barrels of oil equivalent per day (kboe/d), though the exit rate for the year was 144 kboe/d, marking a 1% increase from the third quarter’s exit rate of 142 kboe/d.

Diversified Energy’s year-end 2024 net debt stood at $1.64 billion, which was largely in line with consensus estimates of $1.62 billion, resulting in a net debt to adjusted EBITDA ratio of 2.9 times.

The company announced a fourth-quarter dividend of 29 cents per share, maintaining the same level as the previous two quarters. This is part of the total returns of $105 million for 2024, which includes $20 million in share buybacks, representing a 17.7% yield.

Looking into the future, the company provided a combined outlook for 2025 following the completion of the Maverick deal on March 14, 2025. Diversified Energy expects production to range between 1,050 and 1,100 million cubic feet per day (mmcf/d), equivalent to 175-185kboe/d, with 75% of it being gas.

The capital expenditure is forecasted to be between $165 and $185 million, with adjusted EBITDA projected between $825 and $875 million, and adjusted free cash flow around $420 million. Additionally, the company aims to achieve a leverage target of 2.0 to 2.5 times and expects to realize more than $50 million in synergies from the combined company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.