The strong beat and cash flow growth support a bullish outlook, but monitor commodity price volatility and derivative exposure. The upcoming close of the Camino acquisition could further boost cash flow.
Price Chart
Executive Summary
Diversified Energy reported Q1 2026 revenue of $556M, beating the $517.8M consensus by 7.4%, and delivered a 157% YoY jump in adjusted free cash flow to $160M. The company also announced strategic acquisitions and reiterated 2026 guidance, signaling strong operational momentum.
Key Financial Metrics
Key Facts
- Total commodity revenue of $556M vs consensus $517.8M, a 7.4% beat
- Adjusted EBITDA margin improved to 68% from 47% YoY
- Adjusted free cash flow of $160M, up 157% YoY
- Closed $1.175B Camino acquisition and Sheridan acquisition
- Returned $94M to shareholders, including $72M in buybacks
- Reiterated 2026 guidance: Adj. EBITDA $925-975M, Adj. FCF ~$430M
- Leverage ratio improved to 2.2x from 2.7x YoY
Financial Impact
Revenue beat by $38.2M, adjusted FCF up $98M YoY, and leverage decreased by 0.5x
Risk Factors
- Large non-cash derivative losses ($398M) could weigh on GAAP earnings
- Integration risks from recent large acquisitions
- Commodity price volatility and geopolitical uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3289407 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 7w ago | 8-K | $15.72 $15.43 | ▼ −1.84% | ▼ −1.46% | $14.44 (−8.14%) |
Sep 2, 2026 7w ago | Press Release | $15.72 $15.43 | ▼ −1.84% | ▼ −1.46% | $14.44 (−8.14%) |
Aug 15, 2026 10w ago | Institutional Cluster | $14.39 $14.40 | ▲ +0.07% | ▲ +0.75% | $14.44 (+0.35%) |
Aug 14, 2026 10w ago | 8-K | $14.32 $14.39 | ▲ +0.49% | ▲ +0.96% | $14.44 (+0.84%) |
Jul 29, 2026 12w ago | Press Release | $13.06 $13.46 | ▲ +3.06% | ▲ +2.36% | $14.44 (+10.57%) |
May 26, 2026 21w ago | 3 | $14.26 $14.54 | ▲ +1.99% | ▲ +1.44% | $14.44 (+1.29%) |
May 21, 2026 22w ago | 8-K | $15.19 $14.81 | ▼ −2.45% | ▼ −3.04% | $14.44 (−4.92%) |
May 19, 2026 22w ago | 8-K | $16.78 $16.36 | ▼ −2.50% | ▼ −3.54% | $14.44 (−13.95%) |
May 6, 2026 24w ago | 8-K | $15.57 $15.65 | ▲ +0.51% | ▼ −0.32% | $14.44 (−7.26%) |
May 6, 2026 24w ago | Press Release | $15.57 $15.65 | ▲ +0.51% | ▼ −0.32% | $14.44 (−7.26%) |
US Market Status
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