Diversified Energy Co PLC on Monday hailed the strength of its portfolio of high-quality assets as it reported a much improved sales, earnings and cash flow performance.
The Birmingham, Alabama-based oil and gas production company said adjusted earnings before interest, tax, depreciation and amortisation multiplied to $286 million in the third quarter from $115 million the year prior.
Revenue more than doubled to $500 million from $244 million, while adjusted free cash flow improved to $144 million from $56 million.
Chief Executive Rusty Hutson commented: ‘Our growing portfolio of high-quality assets continued to deliver exceptional results this quarter... demonstrating Diversified‘s ability to generate substantial value in volatile markets.’
Diversified Energy said its leverage ratio was 2.4 times net debt to adjusted Ebitda, an 20% improvement from the end of 2024, and reaching its 2.5 times 2025 target ahead of shchedule.
Hutson added: ‘Significant strategic work over the last few years has built us into a company with higher growth prospects, a robust cash flow profile, and solid footing to deliver on our capital allocation framework. This progress has enabled us to strengthen our commitment to shareholders with a record year-to-date return of capital.’
Looking ahead, Diversified Energy raised adjusted Ebitda guidance to between $900 million to $925 million from $825 million to $875 million before, and adjusted FCF outlook to around $440 million from $420 million.
Shares in Diversified Energy closed up 0.6% at 965.50 pence each in London on Monday.
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