First Berlin Maintains Buy Rating on Diversified Energy PLC

First Berlin Equity Research GmbH has published an update on Diversified Energy PLC. Analyst Simon Scholes has maintained a BUY rating but revised the price target from GBp 1900 to GBp 1500. The revision reflects a decrease amid sector-wide multiple compression.

In Q2 2025, Diversified Energy reported a 93% increase in hedged revenue, reaching USD 446 million, due to rising commodity prices and strategic acquisitions. Adjusted EBITDA soared by 142% to USD 280 million, including a significant USD 62 million gain from asset divestitures.

The company has a promising growth outlook, with the Maverick acquisition contributing significantly and management revising synergy expectations upward. Despite a 28% discount to peers in terms of valuation, DEC demonstrates superior growth potential. The new price target still implies a 34% upside.