Diversified Energy Co

Cash-generative natural-gas producer with strong returns and margins offset by aggressive leverage and thin liquidity.

Strengths

• High returns and margins: ROE 92.4th (34.7%), operating margin 82nd, net margin 78th, FCF margin 59th pct
• Disciplined hedging (~80% of next-12-month production fixed) and acquisition-driven 37% production growth

Risks

• Very high leverage (D/E 2.76, 95th pct) and weak liquidity (current ratio 0.60, 31st pct)
• Commodity-price exposure, decommissioning/plugging liabilities, and securitization refinancing risk

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• High leverageHigh leverage (debt/equity 2.76)
• Weak liquidityCurrent ratio 0.60 (<1)
• Revenue declineRevenue -96.2% YoY