Diversified Energy reports 198,000 Boe/d production in Q3 as Birch acquisition advances

Diversified Energy Company PLC CEO Rusty Hutson Jr. joined Steve Darling from Proactive to discuss the company's financial and operational results for the three and nine months ended September 30, 2026, highlighting production performance, portfolio optimization and progress on its planned acquisition of Birch Resources.
Diversified reported average daily production of 1,189 million cubic feet equivalent per day (MMcfepd), or approximately 198,000 barrels of oil equivalent per day, during the third quarter.
Its production mix consisted of approximately 72% natural gas, 14% natural gas liquids and 14% oil. The company generated per-unit revenue of $4.36 per Mcfe, equivalent to $26.16 per Boe, and reported an adjusted EBITDA margin of 56%.
Hutson said the company expects per-unit expenses to improve as it continues implementing its operational strategy, which is designed to generate sustainable cost savings, efficiencies and synergies across its asset base.
A major focus remains the planned acquisition of Birch Resources, which Diversified expects to close during the fourth quarter of 2026. The transaction is expected to create a top-15 publicly listed independent oil and gas company in the United States based on production, while establishing a scaled, vertically integrated position in the Permian Basin.
The company also confirmed that the portion of Birch production associated with asset-backed securities financing has been hedged ahead of closing.
Diversified continues to pursue its portfolio optimization strategy, with proceeds from acreage sales reaching approximately $149 million year to date.
Operationally, the company has completed drilling the first four wells of its 20-gross-well development program in Oklahoma, with completion activities now underway. The program remains on schedule, and Diversified expects to provide further updates in 2027.
Hutson also highlighted the company's growing contribution from its investment in producing assets acquired through the Camino transaction with Carlyle. The third quarter marked the first quarter in which Diversified received cash flows through its 40% ownership interest in the special purpose vehicle established for those assets.
Total distributions to Diversified were approximately $8.6 million, comprising $6.6 million from residual operating cash flow and another $2 million in management fees.
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