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Diversified Energy Company (DEC) Q3 2026 Earnings Report

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DEC Q3 2026 EPS Results

Actual EPS
$0.93
Consensus EPS
$0.52
Beat/Miss
Beat by +$0.42
One Year Ago EPS
$1.94

DEC Q3 2026 Revenue Results

Actual Revenue
$486.88M
Expected Revenue
$477.25M
Beat/Miss
Beat by +$9.63M
YoY Revenue Growth
-2.62%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/04/2026
Time
After Close
Conference Call
Wednesday, November 4, 2026
DEC Upcoming Earnings

Diversified Energy Company's next earnings date is estimated for March 4, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 04, 2026|% Change Since:3.30%|
Earnings Call Sentiment|Positive

The call was strongly positive overall. Management reported steady production, substantial free cash flow, debt reduction, shareholder returns, improved liquidity, and strong operational savings. The Birch acquisition is expected to materially increase production, EBITDA, and free cash flow, while the company reiterated its 2026 guidance. The main challenges discussed were commodity-price volatility, weak domestic natural gas prices, uncertainty around 2027-2028 gas markets, fuel-cost increases, fewer gas acquisition opportunities, and the company's valuation discount to peers.

Company Guidance

Diversified reiterated full year 2026 guidance, including Sheridan, Camino, the Barnett divestment and 2026 Operated Development Program capital spending but excluding Birch, for total production of 1.2 Bcfe per day, a commodity mix of approximately 29% liquids and 71% natural gas, adjusted EBITDA of approximately $1 billion, adjusted free cash flow of approximately $440 million and total capital expenditures in a range of $225 million to $255 million; Birch is anticipated to close before the end of the fourth quarter and could provide some upside bias, with about 68,000 barrels of oil equivalent per day, about $548 million of next 12-month EBITDA and $455 million of free cash flow, while pro forma production is up an estimated 35%, EBITDA more than 55%, and free cash flow more than doubling.

  • Strong Third-Quarter Production and Financial ResultsDaily production averaged approximately 1.2 Bcfe per day. Total commodity revenue was $470 million, equating to approximately $4.29 per Mcfe. Adjusted EBITDA was $256 million for the quarter with a 56% margin, and adjusted free cash flow was $153 million.
  • Durable Free Cash Flow GenerationThe company said its free cash flow engine is expected to generate approximately $440 million in 2026. Trailing 12-month results included approximately $2 billion in commodity revenue, approximately $1 billion in adjusted EBITDA, and $560 million in adjusted free cash flow.
  • Debt Reduction and Strong LiquidityThrough the third quarter of 2026, Diversified repaid approximately $313 million of debt principal, representing over 11% of outstanding debt. Liquidity was approximately $506 million at quarter-end, and the credit facility was subsequently upsized to $1 billion from $900 million.
  • Shareholder ReturnsThe company returned approximately $157 million to shareholders through dividends and strategic share repurchases during 2026 to date, representing an approximate 17% shareholder return on capital yield at current levels. Since its 2017 IPO, Diversified has delivered approximately $2.5 billion in shareholder returns and debt principal repayments.
  • Portfolio Optimization Cash ProceedsThe portfolio optimization program generated approximately $149 million in additional cash proceeds through the first three quarters of 2026 by monetizing noncore acreage and surface assets. The company said it has monetized more than $450 million of assets since 2023 and expects additional opportunities to high-grade the portfolio.
  • Birch Acquisition Adds Scale and Liquids ExposureThe Birch acquisition is on track to close prior to the end of the fourth quarter. It includes 500 gross operated wells, 12 central production facilities, gathering lines, and a water disposal system. Birch is approximately 70% liquids and is expected to contribute about 68,000 barrels of oil equivalent per day, approximately $548 million of next 12-month EBITDA, and $455 million of free cash flow.
  • Significant Pro Forma Growth from BirchPro forma for Birch, production is estimated to increase 35%, EBITDA is expected to increase more than 55%, and free cash flow is expected to more than double. The company expects to become a Top 15 U.S. publicly listed producer with approximately $1.5 billion of EBITDA and nearly $900 million of free cash flow.
  • Birch Financing and Integration OpportunityABS funding facilitated by Carlyle covers the producing assets, while Diversified will own 100% of the Birch PDP along with additional undeveloped acreage and infrastructure assets. Birch is adjacent to existing Texas operations, creating opportunities for near-term synergies and a platform for bolt-on acquisitions.
  • Smarter Asset Management Workover ResultsAcross 263 workover jobs, three workover rigs restored about 6,700 barrels of oil equivalent per day, with an average payback of under 4.5 months.
  • Supply Chain SavingsThe company reduced its Mid-Con chemical suppliers from five to three through a competitive process, resulting in approximately $2.5 million of annual savings. Rightsizing compression and pursuing additional competitive opportunities are expected to add about another $2 million.
  • Infrastructure and Water-Hauling SavingsBy tying into infrastructure it already owned, Diversified cut water-hauling costs by 58%, with approximately $22,000 of capital supporting roughly $100,000 in annual savings and an under-three-month payback.
  • Synergy Capture While Maintaining ProductionUsing existing Diversified operators on acquired assets reduced support costs by approximately 17% on Canvas and Camino and approximately 44% on Sheridan, while holding production flat.
  • Operated Oklahoma Development Program on ScheduleThe Phase 1 Oklahoma program includes approximately 20 gross and 17 net high-working-interest wells that are highly economic at $65 oil and $3.25 natural gas. Four wells have been drilled, execution is on time and on budget, completion operations have begun on the first pad, and construction of production facilities on the second pad is nearly complete.
  • Investment-Grade ABS Debt StructureApproximately 72% of outstanding debt is nonrecourse investment-grade-rated ABS. Management said the rating reflects confidence in the future cash flows of the assets, while the ABS structures are designed to amortize in line with asset cash flows.
  • 2026 Guidance ReiteratedThe company reiterated full-year 2026 guidance for total production of 1.2 Bcfe per day, a commodity mix of approximately 29% liquids and 71% natural gas, adjusted EBITDA of approximately $1 billion, adjusted free cash flow of approximately $440 million, and total capital expenditures of $225 million to $255 million. The guidance does not include the Birch acquisition.
  • Hedging Supports Cash Flow VisibilityDiversified said it has hedged 2027 at approximately $4.40 per Mcfe against the natural gas strip of approximately $3.45 per Mcfe, describing the hedge as consistent with its strategy to protect underwritten returns through commodity cycles.
  • Camino Performance in Line with ForecastCash flows received from the company's 40% ownership in Camino producing assets totaled $8.6 million in the quarter, including approximately $6.6 million from equity-affiliate distributions and approximately $2 million in management fees. Management said there were no one-time or unusual items and that results were broadly in line with its forecast.
  • Capital Access and Acquisition FlexibilityManagement said it has access to capital through strong liquidity on its revolving borrowing base facility, a supportive bank group, its relationship with Carlyle, and the public markets. The company said this provides flexibility to evaluate acquisitions on a deal-by-deal basis.

DEC Earnings History

DEC earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 04, 20272026 (Q4)0.95-2.48――
Nov 04, 20262026 (Q3)0.520.931.94-51.91% (-1.00)
Aug 05, 20262026 (Q2)0.20-0.953.83-124.82% (-4.78)
May 06, 20262026 (Q1)0.331.18-0.64285.24% (+1.82)
Feb 26, 20262025 (Q4)0.552.482.355.27% (+0.12)
Nov 03, 20252025 (Q3)0.591.94-1.72212.56% (+3.66)
Aug 11, 20252025 (Q2)0.793.830.331060.00% (+3.50)
May 12, 20252025 (Q1)0.21-0.64-0.03-2023.33% (-0.61)
Mar 17, 20252024 (Q4)0.522.352.69-12.56% (-0.34)
Aug 15, 20242024 (Q2)0.470.3313.4-97.54% (-13.07)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed