Diversified Energy Company (NYSE: DEC, LSE: DEC) has published its financial and operational results for the three months ended 30 September 2026, reporting Adjusted EBITDA of $256 million and total commodity revenue of $470 million. The Birmingham, Alabama-based independent oil and gas producer also confirmed that its pending acquisition of Birch Resources remains on schedule for a fourth-quarter 2026 close, a deal the company states will establish it as a top-15 US publicly listed independent producer by output. Investors will be watching the Birch closing timeline and the company's ability to maintain shareholder returns in a commodity-sensitive environment.

Key Points

  • Diversified Energy Company (NYSE: DEC, LSE: DEC), a US-listed independent oil and gas producer dual-listed in London
  • Q3 2026 Adjusted EBITDA of $256 million on total commodity revenue of $470 million, with average daily production of 1,189 MMcfepd (198 Mboepd)
  • Year-to-date shareholder returns of approximately $157 million, comprising $94 million in buybacks and approximately $63 million in fixed dividends; Q3 dividend declared at $0.29 per share
  • Investors should monitor the fourth-quarter closing of the Birch acquisition and any update to full-year 2026 guidance, which has been reiterated but excludes Birch

DEC's Q3 2026 Production Mix and Revenue Performance Across Natural Gas, Oil and NGLs

Diversified delivered average daily production of 1,189 MMcfepd (198 Mboepd) for the third quarter of 2026, with the commodity mix split approximately 72% natural gas, 14% oil, and 14% natural gas liquids. Total commodity revenue reached $470 million for the period. The company reported a net loss of $202 million for the quarter, which the announcement states was inclusive of a $348 million non-cash loss on unsettled derivatives. Adjusted EBITDA of $256 million and Adjusted Free Cash Flow of $153 million are presented as more representative indicators of underlying business performance, with an Adjusted EBITDA margin of 56% for the quarter.

Birch Resources Acquisition and Permian Basin Expansion Expected to Close Q4 2026

The proposed acquisition of Birch Resources is cited in the announcement as a transformative step that would, on a pro forma basis, establish Diversified as a top-15 US publicly listed independent oil and gas company by production volume. The company states the deal is expected to deliver an estimated 55% increase in Adjusted EBITDA and more than 100% increase in Adjusted Free Cash Flow relative to its 2026 guidance midpoint. Birch brings a vertically integrated position in the Permian Basin, and the announcement confirms that the portion of Birch production related to ABS financing has been hedged ahead of closing. Birch figures are excluded from reiterated full-year 2026 guidance.

$157 Million Returned to Shareholders Year-to-Date as Credit Facility Upsized to $1 Billion

Diversified returned approximately $157 million to shareholders in the year to the announcement date, comprising approximately $94 million in share repurchases and approximately $63 million via its fixed dividend, representing an approximate 17% shareholder return yield. The company also repurchased 6,676,753 shares year-to-date through 4 November 2026, representing approximately 9% of shares outstanding. Subsequent to quarter-end, Diversified received approval to upsize its credit facility from $900 million to $1 billion. Total liquidity stood at $506 million as of 30 September 2026, and the leverage ratio was reported at 2.66 times, against a target range of 2.0 to 2.5 times.

Oklahoma Development Programme and Camino Asset Cash Flows Advance Diversified's Growth Pipeline

The announcement confirms that Diversified has completed drilling of the first four wells in its 20-gross-well Oklahoma development programme, with completion activities underway and operations described as on schedule. Additionally, the third quarter marked the first period in which Diversified received cash flows from its 40% ownership in the special purpose vehicle established as part of the Camino acquisition with Carlyle, totalling approximately $8.6 million. This comprised approximately $6.6 million from residual operating cash flow and approximately $2.0 million in management fees, illustrating the company's vertically integrated and fee-generating business model. Full-year 2026 guidance for production of 1,180 to 1,210 MMcfe/d and Adjusted EBITDA of $960 million to $1,010 million has been reiterated.