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Diversified Energy

DEC on NYSE. Diversified Energy sells natural gas, NGLs and oil to energy buyers. Market value $963m.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Recent profit includes a one-time gain, so we price the company excluding that gain.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

What to watch out for

See Energy stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
37.7%very high

For every $100 of what the whole company costs, it produced $37.72 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026, without the one-off
7.6×cheap

You pay 7.6 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
n/a

The filings do not give us enough to work this out.

Quality score: 60 of 100. Price score: 100 of 100. Our list needs 70 on quality and 60 on price.

$13.61 a share, 10% above its 1-year low

Over the past year the price has ranged from $12.33 to $18.90.

Dividend: 8.8% a year

Paid every year for 3 years

Yields this high often come before a cut. Check the company's latest news.

Prices from Monday’s close (5 October).

Five years of cash, in billions

0.2
0.2
0.3
0.4
20232024202512 monthsto Jun '26
Revenue
$1.9bn$757m$1.8bn
Operating margin
56.9%-12.8%29.2%
Debt to equity
n/a4.363.07
Shares outstanding
0.00bn0.00bn0.07bn

Health checks

  • Free cash flow positive3 of 3 years
  • Accounting looks honest (Beneish)Not enough data
  • Financial strength (Piotroski)6 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt3.07× equity
  • Revenue growth, five yearsUnknown

Dates

Next results (estimated)
n/a
Last annual report (10-K)
26 February 2026
Next quarterly (estimated, 10-Q)
4 November 2026

Who owns it

None of the long-term investors we follow own it. 183 funds in all.

Jun '25
Dec '25
Jun '26
Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

5 investors own more than 5%.

  • BlackRock, Inc.
    Passive investor
    7.8%+1.8 pts
    Since 30 June 2026
  • at least 6.3%+1.0 pts
    (filed with 1 related holder)
    Since 30 June 2026
  • at least 5.6%
    (filed with 4 related holders)
    Since 31 March 2026
  • FS Specialty Lending Fund
    Passive investor
    at least 4.9%−0.2 pts
    (filed with 2 related holders)
    Since 9 May 2025
  • EIG Energy Fund XVI Holdings Splitter (FourPoint), L.P.
    at least 1.6%−1.4 pts
    (filed with 7 related holders)
    Since 9 January 2026
  • Sold down below 5%
    Since 31 March 2025
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026
  • EIG Redwood Co-Investment, L.P.
    Sold down below 5%
    Since 11 March 2026
    What they said

    Item 4 of the Schedule 13D is hereby amended and supplemented by adding the following at the end thereof: Underwriting Agreement On March 9, 2026, in connection with a registered block trade of Common Stock (the "Underwritten Block Trade"), the Issuer, the Reporting Persons, and…

    Read the filing

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 1 sold $28m.

  • Wade Randall S.
    Director
    Sold
    Date
    9 January 2026
    Shares
    2,100,000
    Price
    $13.28
    Value
    $28m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 26 Feb 2026, plus the 10-Q filed 5 Aug 2026 and 15 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It carries a lot of debt: 3.1× its equity.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.