Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Diversified Energy Q2 revenues surge 73pc, underlying earnings more than double
(Sharecast News) - Production company Diversified Energy said on Monday both production and cash flow had improved in Q2, underscoring the benefits of its recent Maverick acquisition and leading it to reiterate FY guidance. Diversified Energy said revenues surged 73% year-on-year to $510m, driven by a 33% jump in production to 1,149 MMcfepd, while adjusted underlying earnings more than doubled, rising 103% to $280m, while adjusted free cash flow climbed 38% to $88m despite $25m in one-off transaction costs. Diversified also highlighted that margins had remained resilient, with adjusted cost per unit up slightly to $2.21/Mcfe from $2.11/Mcfe in Q1.
The FTSE 250-listed firm's net debt to EBITDA weighting also improved by roughly 13% from year-end FY24 to 2.6x, buoyed by $130m in principal repayments and $70m generated from asset divestitures. Diversified Energy also declared a Q2 dividend of $0.29 per share.
Synergy targets from the Maverick deal were raised to $60m, up from $50m, reflecting staffing and midstream cost savings, and management said Diversified Energy's differentiated strategy had continued to deliver reliable cash margins and long-life asset performance, with FY production guidance reaffirmed at 1,050-1,100 MMcfepd.
Chief executive Rusty Hutson Jr said: "Diversified continues to deliver consistent returns on our assets, along with the expansion of our asset portfolio, reinforcing our position as the US PDP Champion. Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams.
"Given Diversified's continued operational excellence, fundamental market tailwinds, and strategic actions to optimise our portfolio of assets, we remain confident in our ability to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders. Diversified is well-positioned to thrive as a proven portfolio manager of energy assets in today's evolving energy landscape."
As of 0830 BST, Diversified Energy shares were up 5.48% at 1,154.99p.
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
