Diversified Energy Co

DEC

Diversified Energy Company, an independent energy company, engages in the production, transportation and marketing of natural gas, oil, and liquids primarily in the Appalachian and Central regions of the United States. It also operates in the Bossier and Haynesville shale formations and the Cotton Valley sandstones in East Texas and West Louisiana, the Barnett Shale in North Texas and the Mid-Continent producing areas across Central Texas, along with the Anadarko Basin across North Texas and Oklahoma and Permian Basin in West Texas and New Mexico.

About the company

Country: United StatesPrice: $13.84Market Cap: $947.8M

Investment snapshot

24%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

6 / 7

NEUTRAL / FAIL

Median fair value

$53.55

+286.9% vs price

Models with upside

6 / 17

Positive margin of safety

Strongest signal

9 of 10 pass — Buffett objects

Key risk

All 12 investors flag DEC's debt & leverage

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	BUY · Rank #35 (Top 1.1%)	NEUTRAL	PASS	PASS	NEUTRAL	FAIL	FAIL	PASS	NEUTRAL	FAIL	NEUTRAL	NEUTRAL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)			N/A		N/A	N/A				N/A		N/A	N/A	N/A	N/A	N/A	N/A
Margin of Safety	+62.1%	+84.3%	N/A	+74.2%	N/A	N/A	+79.4%	+90.1%	-21.5%	N/A	+71.5%	N/A	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-02-26 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-04 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-02-26 Score computed: 2026-11-14

Where It Passes

Cash Flow90% pass✓ 11✗ 1▾
9 of 10 pass — Buffett objects
Free Cash Flow Proxy$569.0M
✗BuffettPositive and growing
FCF Positive and Growing$280.0M
✓LynchPositive and growing
Operating Cash Flow$464.6M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=7.53%, ROA=5.53%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)2.3x
✓Dreman< 8x
P/E or FCF YieldP/E=3.0x, FCF Yield=29.5%
✓PabraiP/E < 15 or FCF Yield > 10%
FCF Positive3/3 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap26.6%
✓Ackman>= 4%
Price / FCF per Share3.8x
✓Ackman<= 25
Positive Operating Cash Flow frequency5/5 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$280.0M
✓Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization+29.54%; #182/4519 (top 4.0%)
✓OshaughnessyTop 10% of eligible cross-section
Valuation models86% pass✓ 6✗ 1▾
Models split on DEC at $13.84 — fair values range $11.39–$139.69
Graham fair value$36.51
✓Graham+62.1% margin vs $13.84
Buffett fair value$88.40
✓Buffett+84.3% margin vs $13.84
Greenblatt fair value$53.55
✓Greenblatt+74.2% margin vs $13.84
Munger fair value$67.06
✓Munger+79.4% margin vs $13.84
Pabrai fair value$139.69
✓Pabrai+90.1% margin vs $13.84
Akre fair value$11.39
✗Akre-21.5% margin vs $13.84
Ackman fair value$48.64
✓Ackman+71.5% margin vs $13.84

Where It Falls Short

Debt & Leverage0% pass✗ 15▾
All 12 investors flag DEC's debt & leverage
LT Debt vs Net Current AssetsLT Debt $3.0B vs NCA $-588.9M
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 3.00, IC: 2.5x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity4.29
✗Lynch< 0.33
Cash - Long-term Debt$-3.0B
✗LynchPositive preferred
LT Debt / Total Assets Change37.79% -> 44.02%
✗PiotroskiDecreased YoY
Current Assets / Current Liabilities0.53
✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity4.29
✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
Debt Levels4.29
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=2.5x, D/EBITDA=3.1x
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity4.29
✗Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-4.2903; #4050/4210 (top 96.2%)
✗AsnessTop 30% of eligible cross-section
Growth0% pass✗ 13▾
All 8 investors flag DEC's growth
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)P/E 3.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: 189.9% vs Rev: 141.5%
✗LynchInventory growth < Revenue growth
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency2/5 years positive
✗MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth1.5%
✗Ackman>= 5%
Positive EPS Growth Frequency
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendrevenue flat/down, operating margin 56.9% -> 29.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Efficiency25% pass✓ 3✗ 8▾
6 of 8 flag DEC's efficiency — Graham, Buffett, Dreman +3 more
Current Ratio0.53
✗Graham>= 2.0
ROIC (3-5 yr avg)-8.2%
✗Buffett> 10%
ROIC - WACC-18.2%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)235.3%
✓Greenblatt> 25%
Current Ratio Change YoY0.39 -> 0.60
✓PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.19x -> 0.30x
✓PiotroskiImproved YoY
Current Assets / Current Liabilities0.53
✗Dreman> 1.5
Return on Invested Capital10.7%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=45.9%; FY2024: ROIC=-3.6%; FY2025: ROIC=10.7%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC8.1% (RR=75% x ROIC=10.7%)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)1/5 years above 12% (latest 10.7%)
✗SleepROIC > 12% in a majority of years
Verdicts36% pass✓ 4✗ 7▾
Split decision: 7 FAIL · 6 NEUTRAL · 3 PASS
Overall verdict
✗GrahamFAIL (2/9)✗BuffettFAIL (2/9)✗LynchFAIL (2/7)✓GreenblattRank #35•PiotroskiNEUTRAL (F-Score 6)✓DremanPASS (6/11)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)✗AkreFAIL (1/6)✗MarksFAIL (2/5)✓AckmanPASS (5/9)•TempletonNEUTRAL (5/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)•NeffNEUTRAL (4/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
Profitability38% pass✓ 17✗ 18▾
10 of 16 flag DEC's profitability — Graham, Buffett, Lynch +7 more
Positive EPS (10 years)2/6 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)2/6 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)21.8%
✓Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)29.2% (latest)
✓BuffettStable or rising over 10 years
Free Cash Flow Proxy$569.0M
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)P/E 3.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE34.7%
✓Lynch> 15%
EBIT / Enterprise Value13.8%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=13.8%, ROC=235.3%
✓GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets5.53%
✓PiotroskiROA > 0
ROA Change YoY-2.64% -> 5.53% (delta: +8.17%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=7.53%, ROA=5.53%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY
✗PiotroskiImproved YoY
Pre-Tax Income / Revenue16.5%
✓Dreman>= 8%
Net Income / Shareholders' Equity34.7%
✓Dreman> 12%
Margin of SafetyP/E=3.0x, P/B=1.1x
✓PabraiP/B < 1.5 or P/E < 15
Return on Equity45.5% (3-yr avg)
✓AkreROE > 20% (3-year avg)
Discount to Intrinsic Value
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency2/5 years positive
✗MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue29.2%
✓Ackman>= 15%
Net Income / Shareholders Equity34.7%
✓Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend56.9% (2023) -> 29.2% (2025)
✗TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendrevenue flat/down, operating margin 56.9% -> 29.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization+35.99%; #172/6340 (top 2.7%)
✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets
✗AsnessTop 30% of eligible cross-section
Net income / positive book equity+34.66%; #368/5226 (top 7.0%)
✓AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.1371; #3853/5884 (top 65.5%)
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years2/5 years positive
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Valuation46% pass✓ 17✗ 11▾
7 of 13 flag DEC's valuation — Graham, Lynch, Marks +4 more
Price / Book Value per Share1.1x
✓Dreman< 1.2x✓Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Price / 3-yr avg EPS
✗Graham<= 15x
Price-to-Book Ratio1.1x
✓Graham<= 1.5x
P/E x P/B
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)P/E 3.0x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value13.8%
✓Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=13.8%, ROC=235.3%
✓GreenblattBoth EY > 10% and ROC > 25%
Price / EPS3.0x
✓Dreman< 12x✓Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)2.3x
✓Dreman< 8x
Valuation ReasonablenessP/E=3.0x, OE Yield=54.0%
✓MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=3.0x, FCF Yield=29.5%
✓PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=3.0x, P/B=1.1x
✓MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value
✗Marks>= 20% below intrinsic value
Price / FCF per Share3.8x
✓Ackman<= 25
Price vs. Trailing Low112% of trailing low ($12.41)
✓Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization+35.99%; #172/6340 (top 2.7%)
✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.7630; #2028/6449 (top 31.4%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS3.0x
✓NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share1.07x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+1.9299; #1117/5247 (top 21.3%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+29.54%; #182/4519 (top 4.0%)
✓OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date-17.13%; #3828/6202 (top 61.7%)
✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Petroleum and Natural Gas

SIC Sector: Oil & Gas Extraction

Size: Small Cap($947.8M)

Revenue: $1.8B+141.5% YoY

Net Income: $341.1M+426.8% YoY

Financial Snapshot

Operating Margin29.2%

Return on Equity34.7%

Debt / Equity3.00

Current Ratio0.60

EPS (Diluted)$4.58

Buybacks (1y)$23.0M

Buybacks (2y)$28.2M

Similar Companies

Shareholder Return

Fiscal 2025

Share retirement not available for this company.

Buybacks: $23.0M
Dividends: $85.0M

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

Metric	Q3 FY 2026 2026-07-01 – 2026-09-30 Sources · derived quarter values 10-Q · 2026-11-04 Derived from cumulative filings: operating cash flow, capex, dividends paid, buybacks.	Q2 FY 2026 2026-04-01 – 2026-06-30 Sources · derived quarter values 10-Q · 2026-08-05 Derived from cumulative filings: operating cash flow, capex, dividends paid, buybacks.	Q1 FY 2026 2026-01-01 – 2026-03-31 Sources 10-Q · 2026-05-06	FY 2025 Sources 10-K · 2026-02-26	FY 2024 Sources 20-F · 2025-03-17	FY 2023 Sources 20-F · 2024-03-19	FY 2022 Sources 20-F · 2024-03-19	FY 2021 Sources 20-F · 2024-03-19
Market Cap	$947.8Mcurrent	--	--	$996.2Mest.	$713.9Mest.	$426.0Mest.	--	--
Revenue	$108.5M	$811.9M	$27.1M	$1.8B↑142%	$757.3M↓61%	$1.9B↑2%	$1.9B↑90%	$1.0B
Operating Income	-$235.3M	$471.8M	-$250.6M	$535.0M↑651%	-$97.1M↓109%	$1.1B↑265%	-$671.4M↓44%	-$467.1M
Net Income	-$202.4M	$246.9M	-$160.6M	$341.1M↑427%	-$104.4M↓114%	$748.7M↑220%	-$625.4M↓92%	-$325.5M
EPS (Diluted)	$-2.86	$3.31	$-2.13	$4.58↑311%	$-2.17↓114%	$15.76↑206%	$-14.82↓81%	$-8.20
Gross Margin	—	—	—	—	14.5%↑39%	10.4%↓84%	65.2%↑20%	54.5%
Operating Margin	-216.8%	58.1%	-923.1%	29.2%↑328%	-12.8%↓123%	56.9%↑263%	-35.0%↑25%	-46.4%
ROE	—	—	—	34.7%↑233%	-26.1%↓120%	127.8%↓69%	409.6%↑935%	-49.0%
Total Debt	$3.1B	$2.9B	$2.9B	$3.0B↑73%	$1.7B↑29%	$1.3B↓12%	$1.5B↑5288%	$27.8M
Shareholders' Equity	$723.2M	$950.7M	$733.4M	$984.1M↑146%	$400.1M↓32%	$585.8M↑484%	-$152.7M↓123%	$664.0M
Current Ratio	0.53	0.57	0.47	0.60↑54%	0.39↓18%	0.48↑52%	0.31	—
Debt / Equity	4.29	3.08	3.94	3.00↓30%	4.26↑88%	2.26↑123%	-9.81↓23531%	0.04
Operating Cash Flow	$135.8M	$88.8M	$168.7M	$464.6M↑111%	$220.7M↓24%	$291.4M↓25%	$387.8M↑21%	$320.2M
Free Cash Flow	$96.5M	$48.4M	$110.7M	$280.0M↑66%	$168.6M↓22%	$217.2M	--	--

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Petroleum and Natural Gas

DEC vs Peers — Financial Grading

Revenue$1.8BBottom 25%

Net Income$341.1MBottom 25%

ROE34.7%Top 25%

D/E3.00Bottom 25%

Op. Margin29.2%Top 25%

Curr. Ratio0.60Bottom 25%

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CONOCOPHILLIPSCOP	$168.2B	$142.28	$58.9B	$8.0B	12.4%	0.36	—	1.30	2/9	3/9	3/7	0/3	F-Score 7	6/11
BP PLCBP	$117.7B	$45.70	$192.5B	$55.0M	0.1%	1.09	6.6%	1.26	1/9	3/9	1/7	0/3	F-Score 5	2/11
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CENOVUS ENERGY INC.CVE	$52.6B	$29.08	$36.3B	$2.9B	12.4%	0.35	—	1.57	1/9	1/9	3/7	0/3	F-Score 5	5/11
WOODSIDE ENERGY GROUP LTDWDS	$40.1B	$21.08	$13.0B	$2.7B	7.6%	0.33	30.0%	1.59	3/9	4/9	0/7	0/3	F-Score 4	7/11
EXPAND ENERGY CorpEXE	$20.4B	$88.53	$12.1B	$1.8B	9.8%	0.27	20.4%	1.01	2/9	5/9	3/7	1/3	F-Score 7	7/11
YPF SOCIEDAD ANONIMAYPF	$14.9B	$37.90	$18.4B	$826.0M	-7.6%	0.98	9.4%	0.87	2/9	1/9	1/7	0/3	F-Score 4	3/11