Diversified Energy Company PLC announced on January 2 2026 that it had repurchased 28,904 shares of its common stock on December 31 2025, paying a volume‑weighted average price of $14.3851 per share through Mizuho Securities USA LLC. The shares will be cancelled, leaving the company with 79,030,244 shares outstanding and no treasury holdings.
The buyback is part of a share‑repurchase program that the board authorized on March 20 2025, initially allowing up to 4,756,842 shares to be repurchased at a total value of £52.3 million. In August 2025 the authorization was increased to 8,099,015 shares, and the program is set to expire on June 30 2026 or at the 2026 Annual General Meeting, whichever comes first. The board has stated that the shares were trading at a substantial discount to net asset value, and the program is intended to return capital to shareholders while managing the company’s share count.
Diversified Energy’s recent financial performance supports the buyback decision. In November 2025 the company raised its full‑year 2025 guidance for Adjusted EBITDA and Adjusted Free Cash Flow, reflecting improving profitability and stronger cash generation. Revenue has been growing, while losses have been decreasing, indicating a trajectory toward profitability. The company’s focus on acquiring and optimizing cash‑generating energy assets has generated free cash flow that can be deployed in share repurchases, dividend payments, or strategic investments.
The cancellation of 28,904 shares reduces the share base, which in turn improves earnings per share and other per‑share metrics that investors monitor. With no treasury holdings remaining, the company’s capital structure is simplified, and the share count is aligned with the board’s view that the stock is undervalued relative to the company’s net asset value. The buyback also signals confidence in the company’s valuation and its ability to generate sufficient cash to support future capital allocation decisions.
Diversified Energy’s broader strategy continues to emphasize the acquisition and optimization of cash‑generating energy assets, coupled with disciplined capital allocation. The share‑repurchase program is a key component of that strategy, allowing the company to return excess cash to shareholders while maintaining flexibility to invest in growth opportunities. The program’s expiration in mid‑2026 provides a clear horizon for the board to assess the program’s impact and decide whether to extend or modify the buyback authority based on the company’s financial performance and market conditions.
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