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Diversified Energy Co PLC on Monday increased cost savings targets for its Maverick Natural Resources acquisition, as it reported strong growth in revenue and adjusted earnings.
Shares in Diversified Energy were 7.0% higher at 1,172.00 pence each in London on Monday morning.
The Birmingham, Alabama-based gas and oil production company reported a net loss of $33.9 million in the first half of 2025, swung from net income of $15.8 million a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation rose to $417.98 million from $217.79 million a year ago, however, as IFRS revenue more than doubled to $778.1 million from $368.7 million the previous year. Inclusive of settled hedges, revenue rose 66% to $740.4 million from $446.4 million.
Free cash flow fell to $92.3 million from $82.6 million including $25 million of non-recurring transaction costs. On an adjusted basis, free cash flow improved to $152.2 million from $102.3 million.
Looking ahead, Diversified Energy reiterated its full-year guidance, which incorporates a contribution from assets gained through its $1.28 billion acquisition of Maverick Natural Resources LLC, a deal completed in March.
Annual savings from the Maverick deal are now seen at $60 million, up from $50 million previously, following ‘strong execution’ during the integration process.
Diversified Energy expects 2025 adjusted Ebitda of $825 million to $875 million and adjusted free cash flow of $420 million.
In 2024, the company reported adjusted Ebitda of $472.3 million and adjusted free cash flow of $211.4 million.
The company said full-year capital expenditure is trending toward the low end of guidance of $165 million to $185 million.
‘As we look ahead, the mega trends of electrification, AI power demand, and US [liquified natural gas] Export growth only strengthen the fundamental outlook for our business. The acceleration of natural gas generation for data center demand in Appalachia creates a line of sight to meaningful in-basin demand, pointing to tighter basis spreads near our footprint in the coming years,’ the company said.
‘We remain confident in our ability to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders,’ it added.
The firm declared a second quarter dividend of 29 US cents, unchanged from the prior quarter, and from a year ago.
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