Diversified Energy Company PLC reported sharply higher half-year results, supported by a 35% increase in production and the integration of the Maverick Natural Resources acquisition. In the first six months of 2025, total revenue, including financial hedges, reached $804 million compared with $449 million a year earlier. Average production stood at 1,007 million cubic feet equivalent per day (MMcfepd), comprising 77% natural gas, 13% natural gas liquids and 10% oil.
Margin expansion and higher cash flow
Adjusted EBITDA reached $418 million, up 92% year-on-year, while adjusted free cash flow totalled $152 million after $28 million in non-recurring costs. In the second quarter, the adjusted EBITDA margin rose to 63%, reflecting the impact of synergies and operational optimisations. Adjusted cost per unit was $2.21/Mcfe, compared with $2.00/Mcfe in the previous quarter, due to a higher liquids content in production linked to Maverick.
Portfolio optimisation and shareholder returns
The asset optimisation programme has generated around $70 million in additional liquidity since the start of the year, through targeted divestments and non-operated development with internal rates of return above 60%. Diversified Energy also returned $105 million to shareholders via dividends and share buybacks, including the repurchase of 3.3 million shares, representing approximately 4% of share capital.
Strategic strengthening through Carlyle
In parallel, the company entered into a partnership with The Carlyle Group to invest up to $2 billion in existing oil and gas assets in the United States. This non-dilutive funding aims to capitalise on consolidation opportunities and strengthen the company’s position in the proved developed producing asset segment. The integration of Maverick, completed in the second quarter, led to an increase in the annual synergy target from $50 million to $60 million.
Unchanged 2025 outlook
For the full year, Diversified Energy maintains its production guidance of between 1,050 and 1,100 MMcfepd, with around 75% natural gas. The group expects adjusted EBITDA between $825 million and $875 million and free cash flow of approximately $420 million, while reducing its financial leverage to between 2.0x and 2.5x.
