Diversified Energy Reports Third Quarter 2026 Results
Diversified Energy reported Q3 2026 total commodity revenue of $470M with a GAAP net loss of $(202)M, driven by a $(348)M non-cash loss on unsettled derivatives. Cash generation remained solid: Adjusted EBITDA of $256M and Adjusted Free Cash Flow of $153M, with average production of 1,189 MMcfepd (198 Mboepd), though Adjusted EBITDA margin compressed to 56% from 66% a year ago. The Birch Resources acquisition remains on track to close in Q4 2026, which pro forma would make Diversified a top-15 U.S. independent producer with an estimated 55% adjusted EBITDA uplift and over 100% adjusted free cash flow uplift.
Key figures
- Revenue
- $470M
- Guidance
- FY2026 reiterated: production 1,180-1,210 MMcfe/d, capex $225-255M, Adjusted EBITDA $960-1,010M, Adjusted FCF ~$440M, leverage target 2.0x-2.5x; excludes Birch
- Capex
- 39000000
- Liquidity
- $506M
- Ytd buyback
- $94 million
- Adjusted fcf
- 153000000
- Leverage ratio
- 2.66x
- Adjusted ebitda
- 256000000
- Dividend per share
- 0.29
- Production mmcfepd
- 1189
- Birch fcf accretion
- >100%
- Operating cash flow
- 136000000
- Abs debt retired ytd
- $313 million
- Birch ebitda accretion
- 55%
- Ytd shareholder returns
- $157 million
- Ytd divestiture proceeds
- $149 million
AI analysis
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