Short answer
Diversified Energy Co (DEC) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $1.8B and net income of $341M.
- Top risk flagged: EPA rescinded GHG endangerment finding Feb 2026, potentially rolling back regulation, but future state-level emission costs/taxes pose risks
FY2025 key financial metrics · XBRL
- Revenue
- $1.8B
- Net income
- $341M
- Operating margin
- 29.2%
- EPS (diluted)
- $4.58
- ROE
- 34.7%
- Operating cash flow
- $465M
Source: XBRL data from the Diversified Energy Co (DEC) FY2025 10-K on SEC EDGAR. USD.
Diversified Energy Co FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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- EPA rescinded GHG endangerment finding Feb 2026, potentially rolling back regulation, but future state-level emission costs/taxes pose risks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
Generated from the filing text; verify against the original. How to read a 10-K
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