# Diversified Energy Co (DEC) Informational only - not investment advice. CIK: 0001922446 SIC: 1311 Crude Petroleum & Natural Gas SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1311 Crude Petroleum & Natural Gas](/industry/1311/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1922446 Filing source: https://www.sec.gov/Archives/edgar/data/1922446/000192244626000020/dec-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001922446-26-000020 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001922446.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,829,142,000 USD | 2025 | verified | | Net income | 341,115,000 USD | 2025 | verified | | Assets | 6,168,959,000 USD | 2025 | verified | | Free cash flow | 280,019,000 USD | 2025 | computed | | Net margin | 18.65% | 2025 | computed | | Operating margin | 29.25% | 2025 | computed | | Revenue YoY | +141.54% | 2025 | computed | | ROE | 34.66% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | DEC | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 18.6% | 11.9% | 71 | 42 | | Operating margin | 29.2% | 11.9% | 77 | 36 | | Revenue growth | 141.5% | 12.2% | 95 | 42 | | FCF margin | 15.3% | 15.0% | 59 | 18 | | ROE | 34.7% | 8.9% | 100 | 43 | | ROA | 5.5% | 4.9% | 58 | 44 | | Liabilities / equity | 5.26 | 0.90 | 98 | 43 | | Current ratio | 0.60 | 0.86 | 19 | 44 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1311 Crude Petroleum & Natural Gas, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1829142000 | USD | 2025 | 2026-02-26 | | Net income | 341115000 | USD | 2025 | 2026-02-26 | | Assets | 6168959000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001922446.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | | Revenue | 1,948,780,000 | 757,290,000 | 1,829,142,000 | | Net income | 748,706,000 | -104,365,000 | 341,115,000 | | Operating income | 1,108,982,000 | -97,098,000 | 535,017,000 | | Diluted EPS | 15.76 | -2.17 | 4.58 | | Operating cash flow | 291,431,000 | 220,650,000 | 464,619,000 | | Capital expenditures | 74,252,000 | 52,100,000 | 184,600,000 | | Dividends paid | 168,041,000 | 83,864,000 | 85,005,000 | | Assets | | 3,956,810,000 | 6,168,959,000 | | Liabilities | | 3,544,853,000 | 5,173,969,000 | | Stockholders' equity | | 400,078,000 | 984,058,000 | | Cash and cash equivalents | 3,753,000 | 5,990,000 | 29,697,000 | | Free cash flow | 217,179,000 | 168,550,000 | 280,019,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | | Net margin | 38.42% | -13.78% | 18.65% | | Operating margin | 56.91% | -12.82% | 29.25% | | Return on equity | | -26.09% | 34.66% | | Return on assets | | -2.64% | 5.53% | | Liabilities / equity | | 8.86 | 5.26 | | Current ratio | | 0.39 | 0.60 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001922446.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2026-Q1 | 2026-03-31 | 27,144,000 | -160,617,000 | -2.13 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 811,908,000 | 246,949,000 | 3.31 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from DEC's latest 10-K: [/company/DEC/business/](/company/DEC/business/). ## Risk Factors Verbatim Item 1A Risk Factors from DEC's latest 10-K: [/company/DEC/risk-factors/](/company/DEC/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1922446/000192244626000067/dec-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of financial condition and results of operations should be read in conjunction with the Condensed Consolidated Financial Statements and the notes thereto included in this report. Unless the context otherwise indicates, references to “Diversified,” the “Company,” “our,” “we” and “us” (i) for periods until the completion of the U.S. Domestication, refer to Diversified Energy Company PLC and its consolidated subsidiaries, collectively, and (ii) for periods at or after the completion of the U.S. Domestication, refer to Diversified Energy Company and its consolidated subsidiaries, collectively. For certain industry specific terms used in this Quarterly Report on Form 10-Q, please refer to the Glossary of Terms. In this discussion and analysis of financial condition and results of operations, we address topics such as acquisitions, tax matters, derivatives, stockholders’ equity, asset retirement obligations, and borrowings. For more detailed information on these areas, refer to Notes 2, 3, 6, 7, 9, and 10 within the Notes to the Condensed Consolidated Financial Statements. These notes provide comprehensive disclosures and explanations that support the analysis presented in this section. Recent Developments •In July 2026, we completed the acquisition of the equity interests of certain affiliates of Camino Natural Resources, LLC (“Camino”) that owned certain producing properties and undeveloped acreage for a gross purchase price of approximately $1.2 billion before customary purchase price adjustments. Refer to Note 14 for additional information regarding the Camino acquisition. •In June 2026, we divested certain non-core Barnett assets for net proceeds of $116 million after customary purchase price adjustments. The proceeds received exceeded the carrying amount of the net assets divested resulting in a gain on natural gas and oil properties and equipment of $19 million. •In May 2026, we formed DP Red River LLC, a limited-purpose, bankruptcy-remote, wholly-owned subsidiary (“ABS XII”), to issue asset-backed securities with a total principal amount of $850 million (the “ABS XII Notes”). •In April 2026, we acquired certain oil and natural gas wells, leasehold interests and related assets from Sheridan Holding Company III, LLC (“Sheridan”). We paid net consideration of $236 million, inclusive of customary purchase price adjustments. •In April 2026, we completed the semi-annual borrowing base redetermination of the Credit Facility. The borrowing base under the facility was increased from $825 million to $900 million as a result of the increase in collateral from certain assets acquired in the Sheridan acquisition. •For the six months ended June 30, 2026, we repurchased 5,978,251 shares, representing approximately 8% of the shares outstanding as of June 30, 2026. Market Conditions Our business continued to be influenced by a range of external factors in 2026, including commodity price volatility, geopolitical developments, and evolving supply and demand dynamics. We are a U.S. domestic energy producer focused primarily on the production of natural gas. During the second quarter, Henry Hub natural gas prices remained volatile but averaged approximately $2.90 per MMBtu, compared with an average of approximately $5.04 per MMBtu in the first quarter, reflecting lower prices as winter- driven demand eased, partially offset by strong LNG export demand and the onset of summer cooling demand. Geopolitical tensions, including the conflict involving Iran, the Russia-Ukraine war, and continued instability in the Middle East and Venezuela, contributed to volatility in global energy markets and underscored the strategic importance of U.S. energy production. In particular, uncertainty surrounding transit through the Strait of Hormuz contributed to market instability during the quarter. Domestically, policy shifts continued to support U.S. energy development and LNG export growth, although tariffs on certain imported steel, aluminum and derivative products introduced additional uncertainty around the cost of some equipment and materials. Our vertically integrated model helps insulate us from certain direct impacts, and our hedging program continues to play an important role in mitigating commodity price risk and supporting cash flow durability. We also continued to monitor inflationary pressures, labor availability and supply chain conditions affecting the broader industry. Despite ongoing market volatility and policy uncertainty, we remain focused on optimizing our asset base, managing costs and enhancing operational efficiency. Our integrated model and strategic positioning continue to support our ability to navigate market fluctuations and capitalize on long-term opportunities in the oil and natural gas sector. 30 [[GREPCENT_TABLE]] [["Table of Contents","MD&A","Diversified Energy"]] [[/GREPCENT_TABLE]] Results of Operations for the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025 Production Volumes [[GREPCENT_TABLE]] [["","Three Months Ended"],["","June 30, 2026","June 30, 2025","Change","% Change"],["Net production"],["Natural gas (MMcf)","80,715","76,638","4,077","5%"],["NGLs (MBbls)","2,862","2,318","544","23%"],["Oil (MBbls)","2,685","2,338","347","15%"],["Total production (MMcfe)(a)","113,997","104,574","9,423","9%"],["Average daily production (MMcfepd)","1,253","1,149","104","9%"],["% Natural gas (Mcfe basis)","71%","73%"]] [[/GREPCENT_TABLE]] (a)The basis for converting oil and NGL volumes (MBbls) to natural gas equivalent volumes (MMcfe) is determined by using the ratio of one Bbl of oil or NGLs to six Mcf of natural gas. The increase in production volumes for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily related to the Canvas and Sheridan acquisitions in the fourth quarter of 2025 and second quarter of 2026, respectively, as well as our continued non-operated development investment. These increases were partially offset by normal production declines. Commodity Pricing Commodity prices fluctuate due to a range of factors outside of our control or ability to predict. These include, but are not limited to, increased natural gas, NGLs and oil production levels that exceed market demand, adverse or unseasonable weather conditions, geopolitical developments, macroeconomic events, and intensifying competition from other energy sources. Collectively, these dynamics impact supply and demand, which ultimately determine the realized sales prices for our production. In addition to these market-driven factors, our realized prices are affected by our derivative activities, commodity trades executed by non-physical trading entities, and geographic variances in market pricing, including basis differentials. In response to these ongoing and evolving conditions, we continuously monitor the commodity price environment. This disciplined approach is designed to preserve adequate liquidity, uphold our financial flexibility, and protect long-term shareholder value across a range of pricing scenarios. The following table summarizes our average realized sales prices and benchmark prices for the periods presented: [[GREPCENT_TABLE]] [["","Three Months Ended"],["","June 30, 2026","June 30, 2025","$ Change","% Change"],["Average realized sales prices (before derivative settlements)"],["Natural gas (Mcf)","$2.03","$2.52","$(0.49)","(19%)"],["NGLs (Bbls)","29.98","22.71","7.27","32%"],["Oil (Bbls)","94.67","63.81","30.86","48%"],["Total (Mcfe)","$4.42","$3.78","$0.64","17%"],["Average realized sales prices (after derivative settlements)"],["Natural gas (Mcf)","$2.52","$2.65","$(0.13)","(5%)"],["NGLs (Bbls)","21.67","22.15","(0.48)","(2%)"],["Oil (Bbls)","65.96","66.34","(0.38)","(1%)"],["Total (Mcfe)","$3.88","$3.91","$(0.03)","(1%)"],["Average benchmark prices"],["Henry Hub (Mcf)","$2.90","$3.44","$(0.54)","(16%)"],["Mont Belvieu (Bbls)","33.00","35.87","(2.87)","(8%)"],["WTI (Bbls)","92.79","63.74","29.05","46%"]] [[/GREPCENT_TABLE]] 31 [[GREPCENT_TABLE]] [["Table of Contents","MD&A","Diversified Energy"]] [[/GREPCENT_TABLE]] Commodity Revenue The following table reconciles the change in commodity revenue (excluding the impact of hedges settled in cash) by reflecting the effect of changes in volume and in the underlying prices: [[GREPCENT_TABLE]] [["(In thousands)","Natural Gas","NGLs","Oil","Total"],["Commodity revenue for the three months ended June 30, 2025","$192,931","$52,651","$149,186","$394,768"],["Volume increase (decrease)","10,274","12,354","22,142","44,770"],["Price increase (decrease)","(39,509)","20,808","82,863","64,162"],["Net increase (decrease)","(29,235)","33,162","105,005","108,932"],["Commodity revenue for the three months ended June 30, 2026","$163,696","$85,813","$254,191","$503,700"]] [[/GREPCENT_TABLE]] Commodity revenue for the three months ended June 30, 2026 increased 28% compared to the three months ended June 30, 2025. The increase was primarily related to the 17% increase in average realized sales prices, excluding the impact of derivatives settled in cash, and the 9% increase in sold volumes primarily due to the acquisitions and non-operated development as discussed above. Commodity Derivatives To manage our cash flows in a volatile commodity price environment, we utilize commodity derivative contracts that enable us to secure fixed per-unit sales prices for a portion of our production. As of June 30, 2026, approximately 86% of our production was fixed through commodity derivative contracts over the next twelve months. The tables below set forth the impact of commodity derivatives settlements on commodity revenue: [[GREPCENT_TABLE]] [["","Three Months Ended June 30, 2026"],["(In thousands, except per unit)","Natural Gas","NGLs","Oil","Total Commodity"],["Revenue","Realized $","Revenue","Realized $","Revenue","Realized $","Revenue","Realized $"],["Excluding hedge impact","$163,696","$2.03","$85,813","$29.98","$254,191","$94.67","$503,700","$4.42"],["Gain (loss) on commodity derivatives settlements","39,464","0.49","(23,780)","(8.31)","(77,080)","(28.71)","(61,396)","(0.54)"],["Including hedge impact","$203,160","$2.52","$62,033","$21.67","$177,111","$65.96","$442,304","$3.88"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","Three Months Ended June 30, 2025"],["(In thousands, except per unit)","Natural Gas","NGLs","Oil","Total Commodity"],["Revenue","Realized $","Revenue","Realized $","Revenue","Realized $","Revenue","Realized $"],["Excluding hedge impact","$192,931","$2.52","$52,651","$22.71","$149,186","$63.81","$394,768","$3.78"],["Gain (loss) on commodity derivatives settlements","10,011","0.13","(1,307)","(0.56)","5,913","2.53","14,617","0.13"],["Including hedge impact","$202,942","$2.65","$51,344","$22.15","$155,099","$66.34","$409,385","$3.91"]] [[/GREPCENT_TABLE]] Gain (Loss) on Derivatives The table below sets forth the impact of settlements and fair value adjustments on derivatives for the periods presented: [[GREPCENT_TABLE]] [["","Three Months Ended"],["(In thousands)","June 30, 2026","June 30, 2025","$ Change","% Change"],["Net gain (loss) on commodity derivatives settlements","$(61,396)","$14,617","$(76,013)","(520%)"],["Net gain (loss) on interest rate swaps","17","35","(18)","(51%)"],["Total gain (loss) on settled derivatives(a)","$(61,379)","$14,652","$(76,031)","(519%)"],["Gain (loss) on fair value adjustments of unsettled derivatives(b)","352,413","154,419","197,994","128%"],["Total gain (loss) on derivatives","$291,034","$169,071","$121,963","72%"]] [[/GREPCENT_TABLE]] (a)Represents the cash settlement of derivatives that were settled during the period. (b)Represents the change in fair value of derivatives, net of the carrying value of derivatives that were settle [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1922446/000192244626000020/dec-20251231.htm Complete FY 2025 MD&A: /company/DEC/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in this report. Unless the context otherwise indicates, references to “Diversified,” the “Company,” “our,” “we” and “us” (i) for periods until the completion of the U.S. Domestication, refer to Diversified Energy Company PLC and its consolidated subsidiaries, collectively, and (ii) for periods at or after the completion of the U.S. Domestication, refer to Diversified Energy Company and its consolidated subsidiaries, collectively. For certain industry specific terms used in this Annual Report on Form 10-K, please refer to the Glossary of Terms. In this discussion and analysis of financial condition and results of operations, we address topics such as acquisitions, tax matters, derivatives, stockholders’ equity, asset retirement obligations, and debt. For more detailed information on these areas, refer to Notes 38 [[GREPCENT_TABLE]] [["Table of Contents","Form 10-K","Diversified Energy Company"]] [[/GREPCENT_TABLE]] 3, 4, 8, 11, 13, and 15 within the Notes to the Consolidated Financial Statements. These notes provide comprehensive disclosures and explanations that support the analysis presented in this section. Market Conditions Our business was influenced by a range of external factors in 2025, including commodity price volatility, geopolitical developments, regulatory changes, and evolving supply and demand dynamics. As a U.S. domestic energy producer focused primarily on natural gas, we benefited from strong LNG export demand and colder-than-average weather, which supported an average Henry Hub price of approximately $3.43 per MMBtu for the year. Prices fluctuated from an average high of $4.42 per MMBtu in December to an average low of $2.84 per MMBtu in October. Year-end inventories were above the five-year average, contributing to price stability despite ongoing global tensions. Geopolitical conflicts, such as the Russia-Ukraine war and instability in the Middle East and Venezuela, continued to disrupt global energy flows and underscored the strategic importance of U.S. energy production and exports. Domestically, policy shifts created a more favorable operating environment, although new tariffs on imported energy equipment and materials introduced some uncertainty for the industry. Our vertically integrated model helped insulate us from direct impacts, and our hedging program played a key role in mitigating commodity price risk and supporting cash flow stability. We also monitored inflationary pressures and supply chain challenges, which affected operating costs across the industry. Despite ongoing market volatility and policy uncertainty, we remain focused on optimizing our asset base, managing costs, and enhancing operational efficiency. Our integrated model and strategic positioning continue to enable us to navigate market fluctuations and capitalize on long-term opportunities in the natural gas and oil sector. Results of Operations for the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Production Volumes [[GREPCENT_TABLE]] [["","For the Year Ended December 31,"],["","2025","2024","Change","% Change"],["Net production"],["Natural gas (MMcf)","295,723","244,298","51,425","21%"],["NGLs (MBbls)","8,821","5,980","2,841","48%"],["Oil (MBbls)","7,935","1,568","6,367","406%"],["Total production (MMcfe)","396,259","289,586","106,673","37%"],["Average daily production (MMcfepd)","1,086","791","295","37%"],["% Natural gas (Mcfe basis)","75%","84%"]] [[/GREPCENT_TABLE]] The increase in production volumes for the year ended December 31, 2025 compared to the year ended December 31, 2024 was primarily related to the Maverick and Canvas acquisitions in 2025, as well as full year production for Oaktree, Crescent Pass, and East Texas II acquisitions completed in 2024, partially offset by normal production declines. Commodity Pricing Commodity prices fluctuate due to a variety of factors we can neither control nor predict, including increased production in excess of demand of natural gas, NGLs or oil, weather conditions, political and economic events, and competition from other energy sources. These factors impact supply and demand, which in turn determine the sales prices for our production. In addition to these factors, the prices we realize for our production are affected by our derivative activities and commodity trades by non-physical trading entities, as well as locational differences in market prices, including basis differentials. We will continue to evaluate the commodity price environment and adjust the pace of our activity in order to maintain appropriate liquidity and financial flexibility. The following table summarizes our average realized sales prices and benchmark prices for the periods presented: [[GREPCENT_TABLE]] [["","For the Year Ended December 31,"],["","2025","2024","Change","% Change"],["Average realized sales prices (before derivative settlements)"],["Natural gas (Mcf)","$2.81","$1.90","$0.91","48%"],["NGLs (Bbls)","23.57","25.17","(1.60)","(6%)"],["Oil (Bbls)","63.10","74.71","(11.61)","(16%)"],["Total (Mcfe)","$3.88","$2.53","$1.35","53%"]] [[/GREPCENT_TABLE]] 39 [[GREPCENT_TABLE]] [["Table of Contents","Form 10-K","Diversified Energy Company"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","For the Year Ended December 31,"],["","2025","2024","Change","% Change"],["Average realized sales prices (after derivative settlements)"],["Natural gas (Mcf)","$2.80","$2.57","$0.23","9%"],["NGLs (Bbls)","23.34","24.32","(0.98)","(4%)"],["Oil (Bbls)","66.80","69.54","(2.74)","(4%)"],["Total (Mcfe)","$3.94","$3.05","$0.89","29%"],["Average benchmark prices"],["Henry Hub (Mcf)","$3.43","$2.27","$1.16","51%"],["Mont Belvieu (Bbls)","35.03","38.16","(3.13)","(8%)"],["WTI (Bbls)","64.81","75.72","(10.91)","(14%)"]] [[/GREPCENT_TABLE]] Commodity Revenue The following table reconciles the change in commodity revenue (excluding the impact of hedges settled in cash) by reflecting the effect of changes in volume and in the underlying prices: [[GREPCENT_TABLE]] [["(In thousands)","Natural Gas","NGLs","Oil","Total"],["Commodity revenue for the year ended December 31, 2024","$464,600","$150,513","$117,146","$732,259"],["Volume increase (decrease)","97,708","71,508","475,679","644,895"],["Price increase (decrease)","267,939","(14,153)","(92,119)","161,667"],["Net increase (decrease)","365,647","57,355","383,560","806,562"],["Commodity revenue for the year ended December 31, 2025","$830,247","$207,868","$500,706","$1,538,821"]] [[/GREPCENT_TABLE]] Commodity revenue of $1,539 million for the year ended December 31, 2025 increased $807 million, or 110%, compared to $732 million for the year ended December 31, 2024. The increase in commodity revenue was primarily related to the 53% increase in average realized sales prices, excluding the impact of derivatives settled in cash, and the 37% increase in sold volumes primarily due to acquisitions as discussed above. Commodity Derivatives To manage our cash flows in a volatile commodity price environment, we utilize derivative hedging contracts that allow us to fix the per unit sales prices for our production. As of December 31, 2025, approximately 80% of our production was fixed through derivative hedging contracts over the next twelve months. The tables below set forth the commodity hedge impact on commodity revenue, excluding and including cash received for commodity hedge settlements: [[GREPCENT_TABLE]] [["(In thousands, except per unit data)","For the Year Ended December 31, 2025"],["Natural Gas","NGLs","Oil","Total Commodity"],["Revenue","Realized $","Revenue","Realized $","Revenue","Realized $","Revenue","Realized $"],["per Mcf","per Bbl","per Bbl","per Mcfe"],["Excluding hedge impact","$830,247","$2.81","$207,868","$23.57","$500,706","$63.10","$1,538,821","$3.88"],["Commodity hedge impact","(3,683)","(0.01)","(1,998)","(0.23)","29,390","3.70","23,709","0.06"],["Including hedge impact","$826,564","$2.80","$205,870","$23.34","$530,096","$66.80","$1,562,530","$3.94"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["(In thousands, except per unit data)","For the Year Ended December 31, 2024"],["Natural Gas","NGLs","Oil","Total Commodity"],["Revenue","Realized $","Revenue","Realized $","Revenue","Realized $","Revenue","Realized $"],["per Mcf","per Bbl","per Bbl","per Mcfe"],["Excluding hedge impact","$464,600","$1.90","$150,513","$25.17","$117,146","$74.71","$732,259","$2.53"],["Commodity hedge impact","164,452","0.67","(5,055)","(0.85)","(8,108)","(5.17)","151,289","0.52"],["Including hedge impact","$629,052","$2.57","$145,458","$24.32","$109,038","$69.54","$883,548","$3.05"]] [[/GREPCENT_TABLE]] 40 [[GREPCENT_TABLE]] [["Table of Contents","Form 10-K","Diversified Energy Company"]] [[/GREPCENT_TABLE]] Gain (Loss) on Derivatives The table below sets forth the impact of settlements and fair value adjustments on derivatives for the periods presented: [[GREPCENT_TABLE]] [["","For the Year Ended December 31,"],["(In thousands)","2025","2024","$ Change","% Change"],["Net gain (loss) on commodity derivatives settlements","$23,709","$151,289","$(127,580)","(84%)"],["Net gain (loss) on interest rate swaps","135","190","(55)","(29%)"],["Total gain (loss) on settled derivatives(a)","$23,844","$151,479","$(127,635)","(84%)"],["Gain (loss) on fair value adjustments of unsettled derivatives(b)","193,843","(189,030)","382,873","(203%)"],["Total gain (loss) on derivatives","$217,687","$(37,551)","$255,238","(680%)"]] [[/GREPCENT_TABLE]] (a)Represents the cash settlement of derivatives that settled during the period. (b)Represents the change in fair value of derivatives net of removing the carrying value of derivatives that settled during the period. The change in this metric was primarily related to an increase in the value of unsettled derivatives, which had a gain of $194 million in 2025 compared to a loss of $189 million in 2024, a change of $383 million, as a result of decreases along the forward commodity curve. This change was partially offset by a $128 million decrease in gains on settled derivatives as a result of increased commodity pricing. Operating Expenses [[GREPCENT_TABLE]] [["","For the Year Ended December 31,"],["(In thousands, except per unit data)","2025","Per Mcfe","2024","Per Mcfe","Total Change","Per Mcfe Change"],["Lease operating expenses","$457,593","$1.15","$231,651","$0.80","$225,942","98%","$0.35","44%"],["Production taxes","86,709","0.22","36,043","0.12","50,666","141%","0.10","83%"],["Midstream operating expenses","79,185","0.20","72,098","0.25","7,087","10%","(0.05)","(20%)"],["Transportation expenses","115,267","0.29","90,461","0.31","24,806","27%","(0.02)","(6%)"],["Accretion of asset retirement obligation","48,607","0.12","28,464","0.10","20,143","71%","0.02","20%"],["General and administrative expense","167,626","0.42","129,745","0.45","37,881","29%","(0.03)","(7%)"],["Depreciation, depletion and amortization","412,506","1.04","291,995","1.01","120,511","41%","0.03","3%"],["(Gain) loss on oil and gas property and equipment","(73,368)","(0.19)","(26,069)","(0.09)","(47,299)","181%","(0.10)","111%"],["Total operating expenses","1,294,125","3.25","854,388","2.95","439,737","51%","0.30","10%"]] [[/GREPCENT_TABLE]] Lease Operating Expense (“LOE”): LOE includes costs incurred to maintain producing properties. Such costs include direct and contract labor, repairs and maintenance, water hauling, compression, automobile, insurance, and materials and supplies expenses. The increase in LOE was driven by the acquisitions of Maverick and Canvas. Specifically, the increase in LOE per Mcfe was primarily related to a greater exposure to liquids production. A [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/DEC/mda/fy2025/ All MD&A years: /company/DEC/mda/ ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1311 Crude Petroleum & Natural Gas) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/DEC.md · JSON record: /company/DEC.json · verified financials: /company/DEC/financials.json / /company/DEC/financials.csv · machine TOC for the whole site: /llms.txt