Diversified Energy Q2 revenues surge 73pc, underlying earnings more than double
By Iain Gilbert
Date: Monday 11 Aug 2025
(Sharecast News) - Production company Diversified Energy said on Monday both production and cash flow had improved in Q2, underscoring the benefits of its recent Maverick acquisition and leading it to reiterate FY guidance.
Diversified Energy said revenues surged 73% year-on-year to $510m, driven by a 33% jump in production to 1,149 MMcfepd, while adjusted underlying earnings more than doubled, rising 103% to $280m, while adjusted free cash flow climbed 38% to $88m despite $25m in one-off transaction costs. Diversified also highlighted that margins had remained resilient, with adjusted cost per unit up slightly to $2.21/Mcfe from $2.11/Mcfe in Q1.
The FTSE 250-listed firm's net debt to EBITDA weighting also improved by roughly 13% from year-end FY24 to 2.6x, buoyed by $130m in principal repayments and $70m generated from asset divestitures. Diversified Energy also declared a Q2 dividend of $0.29 per share.
Synergy targets from the Maverick deal were raised to $60m, up from $50m, reflecting staffing and midstream cost savings, and management said Diversified Energy's differentiated strategy had continued to deliver reliable cash margins and long-life asset performance, with FY production guidance reaffirmed at 1,050-1,100 MMcfepd.
Chief executive Rusty Hutson Jr said: "Diversified continues to deliver consistent returns on our assets, along with the expansion of our asset portfolio, reinforcing our position as the US PDP Champion. Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams.
"Given Diversified's continued operational excellence, fundamental market tailwinds, and strategic actions to optimise our portfolio of assets, 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. Diversified is well-positioned to thrive as a proven portfolio manager of energy assets in today's evolving energy landscape."
As of 0830 BST, Diversified Energy shares were up 5.48% at 1,154.99p.
Reporting by Iain Gilbert at Sharecast.com
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