Diversified Energy on track to integrate Maverick, shares spark

(Sharecast News) - Shares in Diversified Energy Company sparked on Monday, after the US natural gas firm said the integration of Maverick Natural Resources remained comfortably on track. Diversified announced in January plans to acquire Maverick in a "transformative" $1.3bn deal, giving it access to the Permian Basin, the world's largest shale-oil producing region. Maverick owns a number of producing oil fields in West Texas and New Mexico.

Prior to the deal, Birmingham, Alabama-based Diversified was focused primarily on natural gas and liquids in the Appalachia and Central Basins.

Publishing first quarter numbers, Diversified said the acquisition - which closed in March - would double revenues and free cash flow.

Full field integration is now expected by the end of the second quarter, with technology and administrative integration due by the end of the third.

Diversified also flagged it was on track to exceed planned annualised synergies of over $50m, and reiterated its full-year production forecast, for between 1,050m and 1,100m cubic feet per day (Mmcfe/d). Annual production in 2024 was 792 Mmcfe/d.

As at 1100 BST, Diversified's London-listed shares were up 6% at 1,047.38p, while in New York, the stock was 5% higher in pre-market trading.

Rusty Hutson, chief executive, said: "Diversified is off to a great start in 2025, demonstrating the resilience of our business model in an otherwise volatile business environment while advancing our long-term strategy.

"Despite the broader macroeconomic and geopolitical challenges, we delivered solid operational results and continued growth in free cash flow."

Adjusted earnings before interest, tax, depreciation and amortisation in the three months to 31 March were $138.2m, up on last year's $102.1m. Total revenues were $346.9m, up from $193.6m.

The net loss, meanwhile, widened to $337.4m from $15.1m.