Diversified Energy Reports Third Quarter 2026 Results
Key Highlights
- ➤Birch acquisition remains on schedule for expected fourth-quarter closing
- ➤Third-quarter adjusted EBITDA $256M; adjusted free cash flow $153M
- ➤Third-quarter net loss $202M included a $348M non-cash derivatives loss
- ➤Year-to-date shareholder returns reached approximately $157M, including $94M repurchases
- ➤2026 guidance reiterated: adjusted EBITDA $960M-$1.01B; adjusted free cash flow approximately $440M
Expert Statements
Rusty Hutson, Jr., CEO of Diversified Energy
“Strong execution by our field teams remained at the heart of Diversified’s performance in the third quarter. Their commitment to operating safely, managing costs, and improving the performance of our assets defines our business. I am proud of the operational discipline our teams bring to the field every day, and these third-quarter results underscore our ability to generate predictable cash flows while advancing strategic growth opportunities as we continue to expand our company's scale and capabilities.”
Rusty Hutson, Jr., CEO of Diversified Energy
“During the quarter, we also made meaningful progress in our operated development program in Oklahoma, successfully drilling our first four wells, with completion activities underway and the program progressing on schedule.”
Rusty Hutson, Jr., CEO of Diversified Energy
“These initial activities represent an important step in unlocking the additional reserve value of our existing acreage through measured, capital-disciplined investment, while also providing incremental growth in cash flow generation.”
Rusty Hutson, Jr., CEO of Diversified Energy
“Looking ahead, we are excited about the exceptional quality and scale of our Birch acquisition, which, pro forma, will establish Diversified as a top-15 U.S. publicly listed producer while providing an estimated 55% increase in adjusted EBITDA(c) and an increase of over 100% in adjusted free cash flow(d).”
Rusty Hutson, Jr., CEO of Diversified Energy
“Birch’s attractive cost structure and substantial cash generation provide a strong foundation, with further opportunities to improve margins through integration, portfolio optimization, and our in-house marketing capabilities.”
Rusty Hutson, Jr., CEO of Diversified Energy
“Birch is expected to make Diversified a stronger, larger, and more resilient company, broadening our commodity mix and our operating presence in the Permian Basin, where we see a long runway for future consolidation.”
Rusty Hutson, Jr., CEO of Diversified Energy
“We are excited about the years ahead with expanded asset quality, operating scale, and financial capacity to sustain cash flow through commodity cycles.”
Rusty Hutson, Jr., CEO of Diversified Energy
“We remain committed to providing meaningful shareholder returns and to delivering even greater lasting long-term value.”
BIRMINGHAM, Ala., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Diversified Energy Company ("Diversified", "DEC", or the "Company") (NYSE: DEC, LSE: DEC) is pleased to announce its financial and operational results for the three and nine months ended September 30, 2026.
Recent Highlights * Accretive Acquisition of Birch: On schedule for expected fourth quarter closing of the acquisition of Birch Resources ("Birch"), creating a top-15 U.S. publicly listed independent oil & gas company based on production, which includes a scaled, vertically integrated position in the Permian Basin. The portion of the Birch production related to the ABS financing has been hedged prior to closing. * Portfolio Optimization: Value generated from year-to-date acreage sales has reached approximately $149 million. * Shareholder Returns: Diversified’s cash generative, differentiated business model has allowed for year-to-date returns of approximately $157 million to shareholders, including $94 million in share repurchases and approximately $63 million from its fixed dividend, representing an approximate 17% shareholder return yield. * Operated Development Program: The Diversified team has now completed drilling of the first four wells in its 20 gross well Oklahoma development program, with completion activities underway. Operations remain on schedule, and the Company looks forward to sharing further updates in 2027. * Camino PDP Assets: 3Q26 marked the initial quarter of cash flows received as part of our 40% ownership in the special purpose vehicle for the producing assets acquired in the Camino acquisition with Carlyle, with a total of approximately $8.6 million. Distributions to Diversified included approximately $6.6 million from residual operating cash flow and approximately $2.0 million in management fees. Third Quarter 2026 Results * Average production: 1,189 MMcfepd (198 Mboepd) * Production Volume by Commodity: 72% Natural Gas, 14% Oil, and 14% NGLs
Get started
Create a free account to read the full story.