Diversified Energy PLC: Strategic Moves and Growth Prospects

Diversified Energy PLC has received a "Buy" recommendation from First Berlin Equity Research. The target price was adjusted downwards from GBp 2800 to GBp 1900 by analyst Simon Scholes. The price adjustment considers sector multiple compression, with a new target still reflecting an 80% upside.

The gas futures market shows a positive trend, with anticipated demand growth driven by LNG exports and electricity generation, particularly from data centers. This has resulted in a price increase to USD4.07/mcf over five years, marking a 71% rise from 2024's USD2.38/mcf.

Diversified Energy is recovering from a 2023/24 acquisition pause, expecting a 37% volume increase this year, buoyed by five acquisitions post-June 2024. The company aims to lower its net debt/EBITDA ratio to 2.3x by the end of 2025, meeting target metrics.

A recently announced partnership with Carlyle intends to invest USD2 billion in U.S. natural gas and oil assets, expected to boost non-dilutive financing and accelerate company growth.