The earnings beat on adjusted metrics and maintained guidance should support the stock. Watch for the conference call tomorrow for commentary on Camino Natural Resources acquisition closing and Q2 production updates.
Price Chart
Executive Summary
Diversified Energy Q1 2026 results show strong operational performance with total commodity revenue up 69% YoY to $556M, adjusted EBITDA doubling to $287M, and adjusted free cash flow surging 157% to $160M. The company reiterated its full-year 2026 guidance, signaling confidence in continued cash generation and debt reduction.
Key Financial Metrics
Key Facts
- Total commodity revenue $556M (up 69% YoY from $329M)
- Adjusted EBITDA $287M (up 108% YoY from $138M)
- Adjusted free cash flow $160M (up 157% YoY from $62M)
- Net loss of $161M driven by $398M non-cash derivative loss; adjusted EBITDA margin expanded to 68% from 47%
- Leverage ratio improved to 2.2x from 2.7x a year ago
- Returned $94M to shareholders in Q1 via dividends and share repurchases
- Reiterated full-year 2026 guidance: Adj. EBITDA $925M-$975M, Adj. FCF $430M, production 1,170-1,210 Mmcfed
Financial Impact
Adjusted EBITDA doubled to $287M (up $149M YoY) and adjusted FCF more than doubled to $160M (up $98M YoY)
Risk Factors
- Commodity price volatility could impact future cash flows
- GAAP net loss persists due to large non-cash derivative losses
- Integration risks from recent and pending acquisitions (Sheridan, Camino)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001922446-26-000041 |
| Document: dec-20260506.htm | 0001922446-26-000041 |
| Document: 0001922446-26-000041-index-headers.html | 0001922446-26-000041 |
| Document: 0001922446-26-000041-index.html | 0001922446-26-000041 |
| Document: 0001922446-26-000041.txt | 0001922446-26-000041 |
| 8-K Data (Synthetic) | 0001922446-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 7w ago | 8-K | $15.72 $15.43 | ▼ −1.84% | ▼ −1.46% | $14.58 (−7.25%) |
Sep 2, 2026 7w ago | Press Release | $15.72 $15.43 | ▼ −1.84% | ▼ −1.46% | $14.58 (−7.25%) |
Aug 15, 2026 10w ago | Institutional Cluster | $14.39 $14.40 | ▲ +0.07% | ▲ +0.75% | $14.58 (+1.32%) |
Aug 14, 2026 10w ago | 8-K | $14.32 $14.39 | ▲ +0.49% | ▲ +0.96% | $14.58 (+1.82%) |
Jul 29, 2026 12w ago | Press Release | $13.06 $13.46 | ▲ +3.06% | ▲ +2.36% | $14.58 (+11.64%) |
May 26, 2026 21w ago | 3 | $14.26 $14.54 | ▲ +1.99% | ▲ +1.44% | $14.58 (+2.27%) |
May 21, 2026 22w ago | 8-K | $15.19 $14.81 | ▼ −2.45% | ▼ −3.04% | $14.58 (−4.00%) |
May 19, 2026 23w ago | 8-K | $16.78 $16.36 | ▼ −2.50% | ▼ −3.54% | $14.58 (−13.11%) |
May 6, 2026 24w ago | 8-K | $15.57 $15.65 | ▲ +0.51% | ▼ −0.32% | $14.58 (−6.36%) |
May 6, 2026 24w ago | Press Release | $15.57 $15.65 | ▲ +0.51% | ▼ −0.32% | $14.58 (−6.36%) |
US Market Status
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