Diversified Energy CoDEC 63 Debt-to-EBITDA is 2.20 as of Dec. 2025, which is 34% above its 10-year median of 1.64. GuruFocus rates DEC with a GF Score™ of 63/100 and a GF Value™ of $17.00 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 703 Oil & Gas companies, Diversified Energy Co ranks worse than 67.14% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Diversified Energy Co's Debt-to-EBITDA or its related term are showing as below:
DEC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.12 Med: 1.64 Max: 31.63
Current: 3.28
During the past 13 years, the highest Debt-to-EBITDA Ratio of Diversified Energy Co was 31.63. The lowest was -3.12. And the median was 1.64.
DEC's Debt-to-EBITDA is ranked worse than 67.14% of 703
companies
in the Oil & Gas industry
Industry Median: 2
vs DEC: 3.28
Diversified Energy Co (NYSE:DEC) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Diversified Energy Co Debt-to-EBITDA Related Terms
Diversified Energy Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Diversified Energy Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DEC vs UNTC, SLNG, SKYQ: Debt-to-EBITDA Comparison
For the Oil & Gas Integrated subindustry, Diversified Energy Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diversified Energy Co Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diversified Energy Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Diversified Energy Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is two times the quarterly (Dec. 2025) EBITDA data.
Diversified Energy Co (DEC) has a Debt-to-EBITDA of 2.20 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Diversified Energy Co. This is 34% above median its historical median of 1.64. According to the industry distribution chart, Diversified Energy Co ranks #472 out of 703 companies in the Oil & Gas industry, placing it in the top 67.1%.
Is Diversified Energy Co's Debt-to-EBITDA too high?
Diversified Energy Co's current Debt-to-EBITDA of 2.20 is 34% above median its 10-year median of 1.64. The Oil & Gas industry median Debt-to-EBITDA is 2.00. Diversified Energy Co's value of 2.20 is 10% above this industry median. Based on the distribution chart, Diversified Energy Co ranks #472 out of 703 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Diversified Energy Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Energy Co's Debt-to-EBITDA compare to UNTC and SLNG?
According to the Oil & Gas industry distribution chart, Diversified Energy Co ranks #472 out of 703 companies for Debt-to-EBITDA. This places Diversified Energy Co in the lower half of its industry. The industry median Debt-to-EBITDA is 2.00. Diversified Energy Co's value of 2.20 is 10% above this benchmark. While the company's 10-year median is 1.64 vs. the industry median of 2.00, Diversified Energy Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.00, based on 703 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diversified Energy Co's current Debt-to-EBITDA of 2.20 is 10% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Diversified Energy Co. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Energy Co's current Debt-to-EBITDA is 2.20, which is 34% above median its own 10-year median of 1.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Diversified Energy Co (DEC) is currently considered Modestly Undervalued. The stock's GF Value™ is $17.00, compared to a current price of $13.44 — trading 20.9% below its estimated fair value. The current Debt-to-EBITDA is 2.20, which is 34% above median its 10-year median of 1.64 and 10% above the Oil & Gas industry median of 2.00. Diversified Energy Co's overall GF Score™ is 63/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Diversified Energy Co (DEC), the current Debt-to-EBITDA is 2.20 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diversified Energy Co (DEC) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Energy Co stock appears to be undervalued.
The current stock price of $13.44 is trading 20.9% below its estimated GF Value™ of $17.00.
GuruFocus considers Diversified Energy Co to be Modestly Undervalued.
Key valuation signals for DEC:
Debt-to-EBITDA: 2.20 (34% above median its 10-year median of 1.64)
GF Value™: $17.00 vs. price of $13.44 (20.9% below fair value)
Industry Position: 10% above the Oil & Gas median (#472 of 703)
No single metric tells the full story. See the DEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Energy Co engaged in the production, transportation, and marketing of natural gas, NGLs, and oil, managing a diversified portfolio of mature, long-life assets located across the United States. The company derives revenues from the sale of oil, natural gas and natural gas liquids.
63GF Score
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