Diversified Energy PLC: Strong Q3 Results and NYSE Listing

First Berlin Equity Research has reaffirmed its "Buy" rating for Diversified Energy PLC, increasing the target price from 1,700 GBp to 2,600 GBp. This decision comes after a notable performance in Q3/25, where hedged adjusted EBITDA reached USD 212 million, a significant rise from USD 104 million in Q3/24. The increase was partly driven by the Maverick acquisition, boosting hedged revenue by 80%.

The company reported land sales gains of USD 74 million, underscoring the strategic importance of its 2.3 million acres of undeveloped land in Texas, New Mexico, and Oklahoma. Looking ahead, leverage fell by 20% to 2.4x, within DEC's target range. Management has also revised its 2025 EBITDA guidance upwards to USD 900-925 million.

With plans to list on the New York Stock Exchange later this month, DEC aims to enhance its positioning in U.S. equity indices. This move is expected to address the valuation gap with larger peers, reflecting a positive commodity pricing forecast. Investors can anticipate further strategic advantages from this transition.