Share Buyback

Diversified Energy Company PLC (NYSE:DEC; LSE:DEC) announced that it has executed a significant portion of its share buyback program, purchasing 122,944 common shares on December 15, 2025. The transactions, conducted through Mizuho Securities USA LLC, occurred at a volume-weighted average price (VWAP) of $13.7447 per share. These repurchased shares are slated for cancellation, which will reduce the total number of outstanding common shares to 80,322,829, with no shares held in treasury.

The buyback activity aligns with the company’s broader strategy, which has recently included the acquisition of Canvas Energy and a substantial $400 million ABS XI securitization to fund it. These strategic maneuvers, coupled with a recent corporate restructuring that involved establishing a new Delaware parent entity and a primary listing on the NYSE, signal Diversified Energy’s proactive approach to capital management and shareholder value enhancement.

**Analysis of the Buyback and Its Implications:**

The repurchase of shares is a common corporate finance tool used to signal confidence in the company’s valuation and to return capital to shareholders, potentially boosting earnings per share (EPS) for remaining shareholders. The detailed disclosure of trade-level information, including VWAP, highest, and lowest prices across various trading venues, provides a high degree of transparency. This granularity allows investors to scrutinize the execution of the buyback and understand the price dynamics during the purchase period.

The fact that these shares will be cancelled has a direct impact on the company’s share count. A lower share count, assuming consistent earnings, leads to a higher EPS, which can be a positive signal to the market. For Diversified Energy, which has recently undergone significant strategic and structural changes, such as the Canvas Energy acquisition and the move to a NYSE listing, this buyback demonstrates a commitment to optimizing its capital structure.

**Market Context and Technical Indicators:**

The buyback comes at a time when Diversified Energy’s stock has experienced some volatility. Data indicates that on the day of the buyback, the stock traded at $13.74, which was 4.18% lower over the preceding 24 hours. The trading volume on December 15, 2025, was approximately 807,409 shares, representing a 26% increase above the 20-day average of 640,931 shares, suggesting elevated investor interest or activity coinciding with the buyback.

Technically, the stock’s price of $13.74 was trading below its 200-day moving average of $13.97, indicating a slightly weaker medium-term trend. This could imply that management perceives the current stock price to be undervalued, making the buyback a strategic move to capitalize on this perceived discount.

**Peer Performance and Sector Dynamics:**

While Diversified Energy’s stock saw a decline, its key peers also experienced downward pressure on the same day. Companies like CRGY (-5.61%), SLNG (-1.95%), and CVE (-0.73%) also closed lower. This suggests that the sector may have been influenced by broader market sentiment or energy-specific headwinds, rather than a unique catalyst impacting Diversified Energy alone. The absence of a coordinated sector-wide momentum move indicates that Diversified’s stock performance might be more closely tied to its individual corporate actions and market perception.

**Historical Performance and Strategic Milestones:**

Diversified Energy has a recent history of significant corporate events, many of which have been met with generally positive, albeit modest, market reactions. Key milestones include:

* **November 19:** Publication of an FCA-approved prospectus for LSE trading, which preceded a 1.82% decline in share price.
* **November 21:** Court sanctioning of a new Delaware parent entity and NYSE primary listing, coinciding with a 2.1% gain.
* **November 24:** Completion of the Canvas Energy acquisition, resulting in a 1.3% increase in share price.
* **December 3:** Announcement of a $400 million ABS XI securitization to fund the Canvas acquisition, leading to a 2.7% rise.
* **December 4:** A TR-1 major holdings notice, which saw a 0.86% uptick.

This pattern suggests that while structural and acquisition-related news has tended to move the stock positively, there can be short-term fluctuations, as seen with the prospectus publication. The current buyback adds another layer to this narrative, signaling a proactive approach to capital allocation.

**Shareholder Notification and Disclosure:**

The company has provided a clear denominator for shareholders to use in their calculations for FCA disclosure requirements. Following the cancellation of the repurchased shares, the total number of issued shares will be 80,322,829. This figure is critical for shareholders determining if they need to report changes in their ownership interests under the FCA’s Disclosure Guidance and Transparency Rules.

**About Diversified Energy Company PLC:**

Diversified Energy Company PLC is a prominent energy firm focused on acquiring, operating, and optimizing energy assets. The company employs a strategy of acquiring existing, long-life assets and investing in their performance to improve environmental and operational metrics before eventual safe retirement. Recognized for its sustainability initiatives, Diversified aims to produce energy responsibly, deliver consistent free cash flow, and create shareholder value through a stewardship-oriented approach.