Diversified Energy Co (DEC) FY2025 10-K Annual Report
Diversified Energy Co (DEC) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Diversified Energy Co FY2025 10-K Analysis
Business Overview
- • Core business model: Production, transportation, and marketing of natural gas, NGLs, and oil emphasizing mature, long-life assets with lifecycle asset management
- • New initiatives: Launched $70M well plugging fund in West Virginia for 20 years and completed U.S. Domestication creating publicly traded Delaware parent
- • Strategic shift: Major acquisitions of Maverick Natural Resources ($666M) and Canvas Energy ($533M) expanding reserves and operational footprint
- • Quantitative highlight: Proved reserves increased 68% to 6,082,483 MMcfe; average daily production up 37% to 1,086 MMcfepd
- • Noteworthy financing: Issued $300M Nordic bonds and $530M ABS X asset-backed notes secured by acquired upstream assets
Management Discussion & Analysis
- • Revenue $1.54B in 2025, up 110% from $732M in 2024, driven by 53% higher prices and 37% volume increase from acquisitions
- • Operating expenses $1.29B (3.25 $/Mcfe) in 2025 vs $854M (2.95 $/Mcfe) in 2024; LOE rose 98%, production taxes 141% reflecting higher liquids exposure and property taxes
- • Best segment: Oil revenue $501M, up 328% YoY; worst segment: NGLs revenue $208M, up 38%, with slight price decline
- • Net gain on derivatives $218M in 2025 vs loss $(38)M in 2024; Interest expense $210M up 53% due to new debt issuances; total borrowings $3.0B vs $1.7B
- • No specific forward guidance; management highlights market volatility, commodity price hedging covering 80% production, inflationary and policy risks impacting costs
Risk Factors
- • EPA rescinded GHG endangerment finding Feb 2026, potentially rolling back regulation, but future state-level emission costs/taxes pose risks
- • Exposure to Ukraine and Middle East conflicts influencing volatile natural gas, NGL and oil prices impacting revenue and reserves valuation
- • Dependence on MarkWest Langley, KY NGL processing plant; loss during high pricing periods would reduce revenue and production capacity
- • Increasing competition from companies with advanced technology and capital, including private equity entrants, heightening market pressure
- • Securitization reliance may limit access to capital; inability to securitize could force costlier financing affecting liquidity and growth
Diversified Energy Co FY2025 Key Financial MetricsXBRL
Revenue
$1.8B
▲ +141.5% YoY
Net Income
$341M
▲ +426.8% YoY
Operating Margin
29.2%
▲ +4207bp YoY
Net Margin
18.6%
▲ +3243bp YoY
ROE
34.7%
▲ +6075bp YoY
Total Assets
$6.2B
▲ +55.9% YoY
EPS (Diluted)
$4.58
▲ +311.1% YoY
Operating Cash Flow
$465M
▲ +110.6% YoY
Source: XBRL data from Diversified Energy Co FY2025 10-K filing on SEC EDGAR. All figures in USD.
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