Diversified Energy Co (DEC): Entry into a Material Definitive Agreement

Diversified Energy Co (DEC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Diversified Energy Reports Third Quarter 2026 Results Diversified Energy Company ("Diversified", "DEC", or the "Company") (NYSE: DEC, LSE: DEC) is pleased to announce its financial and operational results for the three and nine months ended September 30, 2026. Recent Highlights •

Diversified Energy reported a $202M Q3 loss, including a $348M non-cash derivative loss, but generated $136M in operating cash flow. The company announced progress on acquisitions, share buybacks, and well development. Key metrics: $470M revenue, $256M adjusted EBITDA, $136M operating cash flow, and $153M adjusted free cash flow. CEO Rusty Hutson highlighted operational discipline and growth opportunities.

Oil prices surged due to Middle East tensions, with Brent crude at $101.21. The U.S. Energy Information Administration and Goldman Sachs revised forecasts, citing delivery risks. Enbridge (ENB) acquired Tallgrass Energy's crude oil business for $2.55B. Williams (WMB) completed a $5.5B acquisition of Momentum Midstream. Diversified Energy (DEC) agreed to buy Birch Permian for $1.8B. Tamarack Valley (TVE) and Headwater (HWX) merged in a $10B deal, focusing on existing assets.

Diversified Energy (LON:DEC, NYSE:DEC) agreed to acquire Birch Permian Holdings for $1.8bn, expanding its Permian Basin position. The deal, expected to close in Q4 2026, will increase production by 35% and add 480 net wells. Birch's assets include 1.17 trillion cubic feet of proved reserves and substantial infrastructure.

Diversified Energy Company (DEC) agreed to acquire Birch, a Permian Basin producer, for $1.8bn, expecting a 35% production and 55% EBITDA increase. Birch contributes 68,000 boe/d and $548m annual EBITDA. DEC plans to fund the deal with a $1.5bn securitisation. Peel Hunt rates DEC 'buy' up to 3,000p, with shares trading at 1,123.32p, down 0.8%.

Diversified Energy (NYSE:DEC) is acquiring Birch for $1.8B, increasing its Permian production to 77,000 barrels of oil equivalent per day and adjusted EBITDA to $612M. The deal is expected to boost overall production by 35% and adjusted EBITDA by 55%, with financing from asset-backed securities and available liquidity. The acquisition is projected to double free cash flow generation and deleverage the company by $2B over four years, according to the company.