$DEC

Diversified Energy Co

CIK:0001922446|SEC Filings

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Gain (loss) on derivatives	$ 291,034	$ 169,071	$ (257,349)	$ (115,213)
Total revenue	811,908	586,697	839,052	649,212
Operating expense
Lease operating expense	(141,242)	(131,184)	(274,210)	(204,623)
Production taxes	(29,660)	(23,317)	(60,151)	(39,750)
Midstream operating expense	(20,439)	(19,361)	(40,675)	(37,997)
Transportation expense	(24,383)	(23,769)	(52,951)	(50,488)
Accretion of asset retirement obligation	(13,481)	(10,624)	(26,729)	(18,982)
General and administrative expense	(43,536)	(56,661)	(85,244)	(90,747)
Depreciation, depletion and amortization	(103,440)	(92,668)	(212,005)	(167,314)
Gain (loss) on natural gas and oil properties and equipment	36,070	62,269	134,147	63,958
Total operating expense	(340,111)	(295,315)	(617,818)	(545,943)
Income (loss) from operations	471,797	291,382	221,234	103,269
Other income (expense)
Interest expense	(61,311)	(56,130)	(124,723)	(98,842)
Loss on debt extinguishment	(23,882)	0	(23,882)	(26,971)
Other income (expense)	698	835	1,246	1,103
Income (loss) before taxation	387,302	236,087	73,875	(21,441)
Income tax benefit (expense)	(139,697)	61,828	13,065	(3,464)
Net income (loss)	247,605	297,915	86,940	(24,905)
Other comprehensive income (loss)	0	72	0	(138)
Total comprehensive income (loss)	247,605	297,987	86,940	(25,043)
Net income (loss) attributable to:
DEC	246,949	297,738	86,332	(25,460)
Noncontrolling interest	656	177	608	555
Net income (loss)	$ 247,605	$ 297,915	$ 86,940	$ (24,905)
Earnings (loss) per share attributable to DEC
Basic (in usd per share)	$ 3.42	$ 3.77	$ 1.17	$ (0.37)
Diluted (in usd per share)	$ 3.31	$ 3.67	$ 1.14	$ (0.37)
Weighted average shares outstanding
Basic (in shares)	72,296,949	78,936,076	73,767,908	68,821,946
Diluted (in shares)	74,705,094	81,138,852	75,972,787	68,821,946
Commodities
Revenue
Revenue, excluding gain (loss) on derivatives	$ 503,700	$ 394,768	$ 1,061,336	$ 724,187
Natural gas
Revenue
Revenue, excluding gain (loss) on derivatives	163,696	192,931	478,668	421,441
NGLs
Revenue
Revenue, excluding gain (loss) on derivatives	85,813	52,651	147,378	100,745
Oil
Revenue
Revenue, excluding gain (loss) on derivatives	254,191	149,186	435,290	202,001
Midstream
Revenue
Revenue, excluding gain (loss) on derivatives	10,101	11,602	21,865	22,200
Other
Revenue
Revenue, excluding gain (loss) on derivatives	$ 7,073	$ 11,256	$ 13,200	$ 18,038

Condensed Consolidated Statements of Cash Flows (Unaudited) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)	Jun. 30, 2026 USD ($)	Jun. 30, 2025 USD ($)
Cash flows from operating activities:
Net income (loss)	$ 247,605	$ 297,915	$ 86,940	$ (24,905)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation, depletion and amortization	103,440	92,668	212,005	167,314
Accretion of asset retirement obligations	13,481	10,624	26,729	18,982
Income tax (benefit) expense	139,697	(61,828)	(13,065)	3,464
(Gain) loss on derivatives	(291,034)	(169,071)	257,349	115,213
Cash proceeds (payments) on settlement of derivatives			(211,858)	(37,584)
Settlement of asset retirement costs			(21,831)	(10,341)
(Gain) loss on natural gas and oil properties and equipment	(36,070)	(62,269)	(134,147)	(63,958)
Loss on early retirement of debt	23,882	0	23,882	26,971
Non-cash share-based compensation			9,380	4,377
Other			11,571	12,027
Changes in working capital:
Accounts receivable, net			(8,618)	45,530
Other assets			(8,483)	(5,621)
Accounts payable			44,743	(4,733)
Other liabilities			(17,081)	(81,598)
Net cash provided by operating activities			257,516	165,138
Cash flows from investing activities:
Consideration for business acquisitions, net of cash acquired			0	(329,709)
Consideration for asset acquisitions, net of cash acquired			(262,046)	(49,989)
Proceeds from divestitures			258,932	73,097
Capital expenditures			(98,392)	(89,269)
Net cash (used in) investing activities			(101,506)	(395,870)
Cash flows from financing activities:
Repayment of borrowings			(2,245,740)	(1,726,484)
Proceeds from borrowings			2,232,439	2,201,132
Prepayment charge on early retirement of debt			(24,223)	0
Debt issuance costs			(13,795)	(30,574)
Hedge modifications associated with ABS Notes			(7,955)	(171,134)
Proceeds from equity issuance, net			0	117,468
Principal element of lease payments			(12,276)	(8,175)
Dividends to stockholders			(43,034)	(39,824)
Distributions to noncontrolling interest owners			(656)	(927)
Repurchases of common stock (stock repurchase program)			(82,495)	(33,649)
Repurchases of common stock by the EBT, net			0	(2,459)
Net cash (used in) provided by financing activities			(197,735)	305,374
Net change in cash, cash equivalents and restricted cash			(41,725)	74,642
Cash, cash equivalents and restricted cash, beginning of period			145,110	52,259
Cash, cash equivalents and restricted cash, end of period	103,385	126,901	103,385	126,901
Cash and cash equivalents	8,238	23,743	8,238	23,743
Restricted cash	95,147	103,158	95,147	103,158
Total cash, cash equivalents and restricted cash	$ 103,385	$ 126,901	$ 103,385	$ 126,901

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 8,238	$ 29,697
Restricted cash	11,400	21,750
Accounts receivable, net	407,817	408,399
Derivatives	83,940	153,150
Prepaid expenses and other current assets	40,123	37,166
Total current assets	551,518	650,162
Natural gas and oil properties (successful efforts method):
Proved natural gas and oil properties	5,943,495	5,808,908
Unproved natural gas and oil properties	19,172	19,804
Accumulated depletion	(1,426,989)	(1,320,953)
Natural gas and oil properties, net	4,535,678	4,507,759
Property, plant, and equipment, net	458,301	446,022
Operating right of use assets	31,250	3,781
Restricted cash	83,747	93,663
Derivatives	37,558	81,702
Deferred tax assets	312,599	287,135
Other assets	99,028	98,735
Total assets	6,109,679	6,168,959
Current liabilities:
Accounts payable	129,539	81,814
Accrued liabilities	166,485	193,742
Revenue to be distributed	241,194	240,125
Current portion of long-term debt, net	107,140	236,553
Operating lease liabilities	10,955	2,131
Derivatives	137,865	155,959
Derivatives settlements payable	42,816	27,405
Other current liabilities	133,852	137,965
Total current liabilities	969,846	1,075,694
Noncurrent liabilities:
Asset retirement obligations	880,954	863,841
Operating lease liabilities	20,522	1,611
Long-term debt, net	2,823,457	2,715,461
Derivatives	378,526	440,567
Other liabilities	74,799	76,795
Total liabilities	5,148,104	5,173,969
Commitments and contingent liabilities (Note 22)
Stockholders' equity:
Common stock ($0.01 par value; 350,000,000 authorized; 71,388,065 and 76,979,625 shares issued and outstanding)	713	769
Additional paid in capital	1,418,822	1,491,719
Accumulated other comprehensive income (loss)	(583)	(583)
Retained earnings (accumulated deficit)	(468,261)	(507,847)
Total stockholders' equity attributable to DEC	950,691	984,058
Noncontrolling interests	10,884	10,932
Total stockholders' equity	961,575	994,990
Total liabilities and stockholders' equity	$ 6,109,679	$ 6,168,959