Diversified Energy Company PLC is a publicly traded independent energy company headquartered in Birmingham, Alabama, and listed on the New York Stock Exchange under the symbol DEC. The business began in 2001 when founder and Chief Executive Officer Rusty Hutson Jr. acquired a package of natural gas wells in West ...Diversified Energy Company PLC is a publicly traded independent energy company headquartered in Birmingham, Alabama, and listed on the New York Stock Exchange under the symbol DEC. The business began in 2001 when founder and Chief Executive Officer Rusty Hutson Jr. acquired a package of natural gas wells in West Virginia. It later operated under the name Diversified Gas & Oil PLC before rebranding as Diversified Energy Company in 2021. The company’s strategy has generally emphasized acquiring mature, producing conventional oil and gas assets with established operating histories and associated midstream infrastructure.
Diversified’s core product is natural gas, supplemented by natural gas liquids, crude oil, and condensates. Its principal operating footprint is in the Appalachian Basin, including assets in Tennessee, Kentucky, Virginia, West Virginia, Ohio, and Pennsylvania. The company also has operations and assets in other U.S. areas, including Oklahoma, Texas, and Louisiana. Rather than focusing primarily on high-risk exploration, Diversified seeks to generate cash flow from existing wells, optimize production, control operating costs, and extend asset lives through disciplined maintenance and selective capital investment.
The company’s activities span upstream and midstream functions. Upstream operations include well ownership, production management, field operations, maintenance, and environmental compliance. Midstream activities include gathering systems and related infrastructure used to collect and transport hydrocarbons. Diversified also markets and arranges transportation for its production, allowing it to manage more of the value chain than a producer that relies entirely on third-party infrastructure. Its asset-retirement responsibilities include plugging and abandoning wells and restoring sites in accordance with regulatory requirements. This well-retirement component is an important part of the company’s environmental and financial planning.
From a financial perspective, the supplied trailing-twelve-month data indicates revenue of approximately $1.9 billion based on revenue per share and the reported share count metrics, with strong reported profitability and operating cash generation. The data also shows substantial leverage: debt-to-equity is approximately 3.1 times, net debt to EBITDA is about 2.2 times, and the current ratio is below 1.0. These characteristics are common considerations for an upstream energy company with a large asset base, but they also expose results to commodity-price movements, interest costs, production declines, regulatory requirements, and refinancing conditions. Reported trailing metrics include an EBITDA margin of approximately 78.3%, a net profit margin near 37.0%, and free cash flow of approximately $187.6 million to equity.
Diversified has approximately 1,987 full-time employees, placing it in the 1,001-2,000 employee category. The company’s broader workforce and operating ecosystem also includes contractors, suppliers, transportation providers, midstream partners, and local service companies. Its stated business objectives include responsible production, efficient asset management, reliable cash generation, and progressive well retirement. Key leadership is associated with founder and CEO Rusty Hutson Jr., whose acquisition-led strategy shaped the company’s growth from a small portfolio of West Virginia wells into a multi-state U.S. energy operator.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.6B
+102.7%
-7.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$341.9M
+487.3%
-34.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+25.5%
+85.5%
+4283.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.1%
+379.7%
+358.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+21.2%
+291.0%
-29.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$280.0M
-4.6%
+43.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.4%
-53.0%
+54.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
307.7%
-19.9%
+1.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.60x
+51.0%
-5.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Diversified Energy 2025 Annual Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Douglas Kris, SVP, IR and Corporate Communications. Thank you, Douglas. You may begin.
Douglas Kris: Good morning, and thank you all for joining us today, and welcome to our fourth quarter and full year 2025 results conference call. With me today are Diversified's Founder and Chief Executive Officer, Rusty Hutson; and President and Chief Financial Officer, Brad Gray. Before we get started, I will remind everyone that the remarks on the call reflect the financial and operational outlook as of today, February 27, 2026. Certain statements made on today's call are forward-looking and may be subject to risks and uncertainties relating to future events and the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including the annual report on Form 10-K for the fiscal year ended December 31, 2025, filed on February 26, 2026. During this call, we also reference certain non-GAAP financial measures. Our disclosures regarding those items are found in our earnings materials on our website and in our regulatory filings. I will now turn the call over to Rusty.
Robert Hutson: Thank you, Doug, and thank you all for joining the call today. Before diving into the recap of the year and the fantastic operational and financial results that we posted last night, I want to start the call today with some opening remarks around our strategy, our culture and the theme that we believe fits well with our accomplishments in 2025, we are proven. I believe we are at an inflection point for our industry and for our company. The landscape is changing rapidly, not only in upstream but the entirety of the energy value stream. Consolidation is accelerating. Volatility in commodity prices, especially natural gas, is increasing. Competition has never been more intense, and the choices we're making right now matter more than ever. But in the 25 years since I founded Diversified Energy, I believe we are in the best position we have ever been in. I'm truly excited for the future and the next 25 years of Diversified. As the founder and CEO of our company, I'm extremely proud of the business we have built, the professionalism of our team, the quality of our assets, our sound financial condition and the strength of our business model. Importantly, a ticker symbol doesn't drive results. People do. Diversified is a leader, an innovator, a pioneer because of the talent, skill, tenacity and capabilities of every member of our team of professionals. Whether in the field or at a desk, Diversified is a leader because we trust our people and empower them to do their very best work. Our people are the track record. They are the …
