- Maverick acquisition doubles Diversified Energy's (DEC, Financial) revenue and free cash flow potential.
- DEC reports Q1 2025 revenue of $295 million with an Adjusted EBITDA of $138 million.
- Integration of Maverick on track, expecting over $50 million in annual synergies.
Diversified Energy Company (DEC) has reported strong financial results for the first quarter of 2025, showcasing its strategic acquisition of Maverick Natural Resources as a significant growth driver. The acquisition has approximately doubled DEC's revenue and free cash flow potential, positioning the company for continued growth and operational efficiency.
In Q1 2025, DEC generated a total revenue of $295 million, supported by a robust Adjusted EBITDA of $138 million, representing a 47% margin. This impressive performance includes only two weeks of revenue contribution from the Maverick acquisition, underscoring the impactful nature of this strategic move.
The company continues to maintain a healthy financial position, bolstered by a leverage ratio of around 2.7x and an undrawn credit facility capacity of $451 million within a $900 million credit facility. During the quarter, DEC retired $51 million in debt principal, further enhancing its financial flexibility.
DEC has effectively returned capital to its shareholders, with over $59 million distributed through dividends of $0.29 per share and approximately $19 million in share repurchases year-to-date. The company remains on track to achieve over $50 million in annual synergies from the Maverick integration, with full operational integration expected by the end of the second quarter of 2025.
Looking ahead, Diversified Energy maintains its 2025 guidance, aiming for total production of 1,050 to 1,100 MMcfe/d, and projects an Adjusted EBITDA between $825 million to $875 million, alongside a free cash flow of approximately $420 million.
