REG-Diversified Energy Reports Third Quarter 2026 Results
Diversified Energy reported Q3 2026 commodity revenue of $470M with average production of 1,189 MMcfepd, but swung to a net loss of $202M due to a $348M non-cash loss on unsettled derivatives. Underlying cash metrics remained solid: Adjusted EBITDA was $256M (down from $285M a year ago), Adjusted FCF was $153M, and the FY2026 guidance was reiterated, with Birch excluded. The Birch Resources acquisition remains on track to close in Q4, which management says will make Diversified a top-15 U.S. independent producer with an estimated 55% adjusted EBITDA increase and over 100% adjusted FCF increase pro forma.
Key figures
- Eps
- 0
- Revenue
- 470000000
- Guidance
- FY2026 guidance reiterated: production 1,180-1,210 MMcfe/d, capex $225-255M, Adjusted EBITDA $960M-$1,010M, Adjusted FCF ~$440M, leverage target 2.0x-2.5x (excludes Birch)
- Liquidity
- $506M credit facility availability plus unrestricted cash
- Leverage ratio
- 2.66x
- Adjusted ebitda
- 256000000
- Acreage sales ytd
- 149000000
- Dividend per share
- 0.29
- Ytd dividends paid
- 63000000
- Birch fcf accretion
- >100%
- Operating cash flow
- 136000000
- Capital expenditures
- 39000000
- Ytd share repurchases
- 94000000
- Adjusted ebitda margin
- 56%
- Birch ebitda accretion
- ~55%
- Credit facility upsize
- $900M to $1B post-quarter
- Adjusted free cash flow
- 153000000
- Ytd shareholder returns
- 157000000
- Abs principal retired ytd
- 313000000
- Adjusted ebitda prior year
- 285000000
- Average production mmcfepd
- 1189
AI analysis
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