Operating cash flow of $257.5M in 2026Q2 closely tracked net income (OCF/NI of 1.04), but cumulative cash generation has outpaced earnings ($1.95B vs. $1.39B over ten quarters), with capital deployment favoring dividends and buybacks.
Diversified Energy Company PLC (DEC) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 701.85M | 464.62M | 345.66M | 410.13M | 387.76M | 320.18M | 241.71M | 279.16M | 87.73M | 6.92M | 5.13M | -3.93M | 1.54M | -730K |
| Operating CF Margin % | - | 28.83% | 43.49% | 47.24% | 20.2% | 32.77% | 59.14% | 60.39% | 30.28% | 16.57% | 28.06% | -62.36% | 20.9% | -14.12% |
| Operating CF Growth % | 76.62% | 34.41% | -15.72% | 5.77% | 21.11% | 32.47% | -13.41% | 218.18% | 1167.48% | 34.96% | 230.48% | -355.59% | 310.68% | - |
| Net Income | 485.51M | 341.9M | -87M | 758.02M | -620.6M | -325.21M | -23.47M | 99.4M | 201.12M | 8.88M | 17.68M | -396K | -235K | -2.83M |
| Depreciation & Amortization | 623.41M | 412.51M | 256.48M | 224.55M | 222.26M | 167.64M | 117.29M | 98.14M | 41.99M | 7.01M | 4.04M | 3.39M | 2.53M | 2.31M |
| Stock-Based Compensation | 21.02M | 10.4M | 8.29M | 6.49M | 8.05M | 7.4M | 5.01M | 3.06M | 783K | 59K | 340K | 0 | 0 | 0 |
| Deferred Taxes | -19.91M | -40.55M | 0 | 0 | 0 | 403.75M | 110.87M | 9.28M | 32.19M | -1.84M | 1.52M | 0 | 0 | 0 |
| Other Non-Cash Items | 300.73M | -203.99M | 201.26M | -495.39M | 639.32M | 25.91M | 42.15M | 47.49M | -148.63M | -5.33M | -20.2M | -5.7M | -1.79M | -169K |
| Working Capital Changes | -10.59M | -55.64M | -33.36M | -83.53M | 138.74M | 40.68M | -10.13M | 21.79M | -39.71M | -1.85M | 1.75M | -1.22M | 1.03M | -42K |
| Change in Receivables | -9.37M | 2.59M | -27.55M | 104.57M | 13.76M | -126.96M | 2.39M | 4.53M | -41.23M | -11.46M | -907K | -158K | 288K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -32.29M | -16.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -442.05M | -820.17M | -272.92M | -239.37M | -386.46M | -625.87M | -256.86M | -466.89M | -766.85M | -93.09M | -9.21M | -3.65M | 197K | 128K |
| Capital Expenditures | -100.27M | -184.6M | -52.1M | -74.25M | -86.08M | -50.17M | -24.85M | -32.31M | -18.52M | -90.22M | -9.3M | -3.73M | -415K | -122K |
| CapEx % of Revenue | 3.49% | 11.46% | 6.55% | 8.55% | 4.48% | 5.14% | 6.08% | 6.99% | 6.39% | 215.96% | 50.88% | 59.15% | 5.64% | 2.36% |
| Acquisitions | -339.85M | -329.71M | -229.44M | -166.58M | -312.57M | -498.73M | -223.09M | -439.27M | -750.26M | -89.78M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -257.4M | -305.86M | 8.63M | 1.46M | 12.19M | -76.97M | 4.55M | 4.7M | 1.92M | -2.87M | 91K | 80K | 612K | 250K |
| Cash from Financing | -267.2M | 448.4M | -70.51M | -174.34M | -6.54M | 316.87M | 15.76M | 188.02M | 665.32M | 101.11M | 4.21M | 7.64M | -2.01M | 839K |
| Debt Issued (Net) | 349.83M | 704.07M | 189.53M | -22.85M | 447.87M | 295.18M | 94.34M | 147.23M | 300.33M | 32.49M | 8.12M | 8.47M | 2.19M | 738K |
| Equity Issued (Net) | -84.54M | 18.02M | -21.13M | -11.05M | -34.69M | 212.41M | 70.11M | 168.96M | 425.6M | 76.98M | 0 | 1.3M | 54K | 1.37M |
| Dividends Paid | -133.82M | -85M | -83.86M | -168.04M | -143.46M | -130.24M | -98.53M | -82.15M | -31.31M | -5.78M | -956K | -2.4M | -3.52M | -1.13M |
| Share Repurchases | -202.01M | -99.45M | -21.13M | -11.05M | -34.69M | -1.4M | -15.63M | -52.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -398.68M | -188.68M | -155.04M | 27.6M | -276.26M | -60.48M | -50.16M | -46.01M | -29.3M | -2.58M | -2.95M | -2.9M | -744K | -142K |
| Net Change in Cash | -9.38M | 92.85M | 2.24M | -3.58M | -5.23M | 11.18M | -282K | 289K | -13.8M | 14.94M | 134K | 56K | -278K | 237K |
| Free Cash Flow | 682.72M | 280.02M | 293.56M | 335.88M | 301.69M | 270.01M | 216.86M | 246.84M | 69.22M | -83.3M | -4.17M | -7.66M | 1.12M | -852K |
| FCF Margin % | 23.79% | 17.38% | 36.93% | 38.68% | 15.72% | 27.64% | 53.06% | 53.4% | 23.89% | -199.39% | -22.82% | -121.51% | 15.26% | -16.48% |
| FCF Growth % | 2049.22% | -4.61% | -12.6% | 11.33% | 11.73% | 24.51% | -12.15% | 256.61% | 183.1% | -1897.07% | 45.55% | -782.1% | 231.81% | - |
| FCF per Share | 9.14 | 3.76 | 6.17 | 7.07 | 7.15 | 6.81 | 6.33 | 7.66 | 3.57 | -13.85 | -1.99 | -3.82 | 0.03 | -0.02 |
| FCF Conversion (FCF/Net Income) | 1.41x | 1.36x | -3.92x | 0.54x | -0.62x | -0.98x | -10.30x | 2.81x | 0.44x | 0.78x | 0.29x | 9.52x | -6.46x | 0.26x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying DEC stock.
Diversified Energy Company PLC (DEC) generated $464.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Diversified Energy Company PLC (DEC) generated $280.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Diversified Energy Company PLC (DEC) spent $184.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Diversified Energy Company PLC (DEC) returned $85.0M to shareholders via cash dividends and spent $99.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Elevated leverage and regulatory costs
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Gains
In 2026Q2, operating cash flow of $257.5M closely tracked net income of $246.9M, yielding an OCF/NI ratio of 1.04, per reported figures, but prior quarters show wide divergence, suggesting earnings quality is inconsistent.
The 2026Q2 conversion appears strong, but this is likely due to non-cash bargain purchase gains and hedging mark-to-market that inflate net income. In 2025Q4, OCF/NI was only 0.45 despite a $376.4M net income, indicating that reported earnings may not consistently translate to cash. Investors should monitor the sustainability of these non-cash gains, as they may obscure the underlying cash-generating ability of the mature asset base.
Free Cash Flow Volatility Reflects Acquisition Cycle
Free cash flow swung from -$122.1M in 2023Q2 to $330.3M in 2024Q4, per financial statements, with the latest quarter at $159.1M, indicating that FCF is highly dependent on acquisition timing and commodity prices.
The trajectory of FCF is erratic, with negative quarters in 2023Q2 and 2022Q4, and a positive but variable trend recently. The 2026Q2 FCF margin of 19.6% is respectable, but the 2024Q4 margin of 74.0% was inflated by a large positive CapEx adjustment (likely asset sales). This volatility suggests that FCF is not a stable metric for this company, and investors should focus on the underlying cash flow from operations, which has been more consistent.
Capital Intensity Reflects Mature Asset Stewardship
CapEx as a percentage of revenue ranged from 6.6% in 2025Q4 to 64.6% in 2023Q2, per reported data, indicating that capital spending is lumpy and often tied to acquisitions rather than organic development.
The low CapEx/Revenue in recent quarters (12.1% in 2026Q2) suggests that maintenance capital is modest, consistent with a harvest strategy on low-decline assets. However, the spikes in 2023Q2 and 2024Q2 (64.6% and 56.6%) likely reflect acquisition-related capital or major maintenance projects. The company's internalized plugging and abandonment may reduce future maintenance capex, but regulatory pressures could increase required spending on older wells.
Working Capital Swings Signal Hedging and Timing Effects
Working capital changes ranged from -$104.8M in 2021Q4 to $91.3M in 2022Q4, per SEC filings, with a positive $10.6M in 2026Q2, indicating that cash flow is often buffered by timing differences in receivables and payables.
The working capital changes are volatile, likely due to the timing of hedge settlements and acquisition-related adjustments. In 2025Q4, a positive $52.1M working capital change boosted operating cash flow, while in 2025Q2, a negative $34.4M reduced it. These swings are not indicative of operational efficiency but rather reflect the lumpy nature of the business. Investors should adjust for these to assess the underlying cash generation.
Capital Deployment Prioritizes Debt Reduction and Buybacks
In 2026Q2, DEC paid $43.0M in dividends and repurchased $82.5M of shares, per reported cash flow, while acquisitions were not disclosed, suggesting a shift toward shareholder returns and deleveraging.
The combination of dividends and buybacks in 2026Q2 totaled $125.5M, exceeding operating cash flow of $257.5M but leaving room for debt paydown. The CEO's commentary emphasizes debt reduction, and the elevated leverage (Debt/Equity of 3.04) suggests that a significant portion of cash flow may be directed to servicing debt. The sustainability of the dividend and buyback program depends on maintaining stable operating cash flow and successful integration of recent acquisitions.
Cumulative Earnings Exceed Cash Flow Over Time
Over the ten quarters from 2021Q4 to 2026Q2, cumulative net income was approximately $1.39B while cumulative operating cash flow was $1.95B, per reported data, indicating that cash generation has outpaced earnings.
The cumulative OCF exceeding net income by roughly $560M suggests that non-cash charges like D&A and impairments have reduced reported earnings relative to cash flow. However, this divergence is not uniform; in some quarters, net income was inflated by non-cash gains. The overall trend indicates that the company's cash-generating ability is real, but the quality of earnings is mixed. Investors should focus on operating cash flow as the more reliable indicator of financial health.
Non-Cash Gains and ABS Financing Obscure Cash Reality
Reported net income in 2026Q2 includes significant non-cash gains, while the company's use of asset-backed securitizations may not be fully reflected in the cash flow statement, per financial disclosures, warranting scrutiny.
The cash flow statement does not separately disclose the impact of bargain purchase gains or the cash flows from ABS transactions, which are likely used to fund acquisitions. These structures can create a disconnect between reported cash flow and the actual cash available to shareholders. Additionally, stock-based compensation of $9.4M in 2026Q2 is a non-cash expense that reduces reported earnings but not cash flow, further complicating the analysis. Investors should adjust for these items to assess the true cash-generating capacity.