📊 DEC Key Takeaways
Investment Thesis
DEC demonstrates strong profitability with excellent margins (29.2% operating, 18.6% net) and robust free cash flow generation ($280M), supported by exceptional revenue growth of 141.5% YoY. However, significant financial leverage (2.76x debt-to-equity, 2.5x interest coverage) and weak liquidity metrics (0.60x current ratio) create material solvency risks that offset operational strength.
DEC Strengths
- Exceptional revenue growth of 141.5% YoY indicating strong commodity demand or successful acquisitions
- Robust profitability with 29.2% operating margin and 18.6% net margin, demonstrating operational efficiency
- Strong free cash flow generation of $280M (15.3% FCF margin) providing debt service and capital flexibility
- Outstanding ROE of 34.7% indicating efficient use of shareholder capital
- Substantial operating cash flow of $464.6M supporting cash-based assessments
DEC Risks
- Critical liquidity stress with current ratio of 0.60x and quick ratio of 0.58x indicating potential short-term payment difficulties
- High leverage with 2.76x debt-to-equity ratio and $2.7B long-term debt against only $984.1M equity
- Weak interest coverage of 2.5x leaves limited margin for earnings deterioration or rate increases in cyclical commodity sector
- Minimal cash position of $29.7M relative to $5.2B total liabilities creates refinancing and operational risks
- Cyclical industry exposure to oil and gas prices; strong results heavily dependent on commodity pricing environment
Key Metrics to Watch
- Debt-to-equity ratio trend and absolute debt levels relative to cash generation capacity
- Current and quick ratios to monitor liquidity position and refinancing needs
- Interest coverage ratio sustainability as commodity prices potentially normalize
- Free cash flow growth and allocation (debt reduction vs. shareholder returns)
- Revenue sustainability and margins if commodity prices decline from current elevated levels
DEC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DEC Profitability Ratios
DEC vs Energy Sector
How Diversified Energy Co compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DEC Balance Sheet & Liquidity
DEC 5-Year Financial Trend
5-Year Trend Summary: Diversified Energy Co's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $15.76 reflects profitable operations.
DEC Growth Metrics (YoY)
DEC Capital Allocation
DEC SEC Filings
Access official SEC EDGAR filings for Diversified Energy Co (CIK: 0001922446)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773870916.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773870859.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773870805.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773870743.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773870652.xml | View → |
❓ Frequently Asked Questions about DEC
What is the AI rating for DEC?
Diversified Energy Co (DEC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DEC's key strengths?
Claude: Exceptional revenue growth of 141.5% YoY indicating strong commodity demand or successful acquisitions. Robust profitability with 29.2% operating margin and 18.6% net margin, demonstrating operational efficiency.
What are the risks of investing in DEC?
Claude: Critical liquidity stress with current ratio of 0.60x and quick ratio of 0.58x indicating potential short-term payment difficulties. High leverage with 2.76x debt-to-equity ratio and $2.7B long-term debt against only $984.1M equity.
What is DEC's revenue and growth?
Diversified Energy Co reported revenue of $1.8B.
Does DEC pay dividends?
Diversified Energy Co pays dividends, with $85.0M distributed to shareholders in the trailing twelve months.
Where can I find DEC SEC filings?
Official SEC filings for Diversified Energy Co (CIK: 0001922446) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DEC's EPS?
Diversified Energy Co has a diluted EPS of $4.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.