Key Highlights

  • Total Revenue was USD 108.5 million, including a USD 378.4 million Derivatives loss, while Commodity revenue was USD 469.6 million.
  • EPS of USD 1.03 compares with an estimate of USD 0.52; GAAP diluted EPS was a loss of USD 2.86.
  • Net production was 109,369 MMcfe in the quarter, against 103,717 MMcfe in the third quarter of 2025.
  • A Cash Dividend of USD 0.29 per share was declared in November 2026, payable on March 31, 2027.

Diversified Energy Company (NYSE:DEC) reported third quarter total revenue of USD 108.5 million, a figure that includes a USD 378.4 million loss on derivatives. Commodity revenue stood at USD 469.6 million. EPS of USD 1.03 compares with an estimate of USD 0.52, while the company's GAAP diluted result was a loss of USD 2.86 per share against Earnings of USD 2.14 a year earlier.

Revenue

Total revenue was USD 108.5 million against USD 499.8 million in the third quarter of 2025. Derivatives produced a loss of USD 378.4 million against a gain of USD 111.0 million a year earlier. Commodity revenue was USD 469.6 million against USD 372.8 million.

By product, oil revenue was USD 219.3 million against USD 149.2 million, NGL revenue was USD 79.3 million against USD 50.0 million, and Natural Gas revenue was USD 170.9 million against USD 173.5 million. Average daily production was 1,189 MMcfe. WTI crude averaged about USD 85.79 per barrel in the quarter against USD 64.93 a year earlier, and Henry Hub gas averaged about USD 2.95 per MMbtu. Management said its hedging program limited the effect of higher oil prices.

Profit and Margins

The operating loss was USD 235.3 million, against Operating Income of USD 180.9 million a year earlier. Lease Operating Expense was USD 135.9 million against USD 125.8 million, depreciation, depletion and amortization was USD 105.1 million against USD 91.1 million.

The company recorded a USD 37.3 million loss from its Equity affiliate DP Eagle and an income tax benefit of USD 132.1 million. Net loss was USD 202.2 million, with USD 202.4 million of loss attributable to the company, against Net Income of USD 171.3 million in the prior-year quarter.

Cash and Balance Sheet

Net cash from Operating Activities for the nine months was USD 393.3 million against USD 282.4 million, and capital expenditures were USD 138 million in both periods. Liquidity at September 30, 2026 was about USD 506 million, made up of USD 6 million of cash and USD 500 million of availability under the Credit facility. Long-term debt, net, was USD 2,997.9 million against USD 2,715.5 million at the end of 2025.

Two transactions shaped the period. In July, the company and Carlyle formed DP Eagle, with the company contributing USD 55 million for a 40% interest, and the company separately bought undeveloped acreage from Camino for about USD 170 million. On September 2, it signed agreements to acquire Birch Permian Holdings and affiliates, covering about 46,000 net mineral acres in the Midland Basin, for about USD 1.8 billion including Debt repayment. Management targets a fourth quarter 2026 closing and plans to fund it with about USD 1.5 billion of asset-backed financing plus credit Facility liquidity.

In October 2026, the credit facility borrowing base was raised from USD 900 million to USD 1 billion.

Numbers in Context

Total revenue of USD 108.5 million sits alongside commodity revenue of USD 469.6 million, a net loss attributable to the company of USD 202.4 million and liquidity of about USD 506 million.

For the nine months, the company repurchased 6,676,753 shares at an average price of USD 14.07, for USD 94 million, representing 9% of shares outstanding. The board declared a dividend of USD 0.29 per share for stockholders of record on February 26, 2027. Management also named the pending Birch closing in the fourth quarter of 2026 and an operated development program in Oklahoma that began during the quarter.