Diversified Energy Company PLC (DEC) Quarterly Earnings Preview

    • DEC is expected to report an EPS of $0.65 and revenue of $248.8 million for the upcoming quarter.
    • The acquisition of Maverick Natural Resources is set to expand DEC's operations significantly.
    • Financial metrics indicate a P/E ratio of 3.89 and a debt-to-equity ratio of 3.17, highlighting valuation and leverage concerns.

    Diversified Energy Company PLC, trading on the New York Stock Exchange under the symbol NYSEEC, is set to release its quarterly earnings on March 17, 2025. Analysts predict an earnings per share (EPS) of $0.65 and revenue of $248.8 million. DEC specializes in natural gas and liquids production, transportation, marketing, and well retirement.

    Recently, DEC completed the acquisition of Maverick Natural Resources, significantly expanding its operations. This acquisition, announced in January 2025, involved issuing over 21 million new ordinary shares, known as Consideration Shares. These shares were approved by shareholders and will be listed on the NYSE, holding the same rights as existing shares.

    DEC's financial metrics reveal a price-to-earnings (P/E) ratio of 3.89, indicating a low valuation relative to its earnings. The price-to-sales ratio is 0.94, suggesting the stock is priced below its sales revenue. The enterprise value to sales ratio is 3.16, and the enterprise value to operating cash flow ratio is 8.10, reflecting its valuation in relation to cash flow.

    The company's earnings yield stands at 25.73%, offering a substantial return on investment for shareholders. However, DEC's debt-to-equity ratio is 3.17, indicating a higher level of debt compared to equity. Additionally, the current ratio of 0.44 suggests potential liquidity challenges in meeting short-term obligations.