---
title: "Diversified Energy | 8-K: FY2026 Q1 Revenue: USD 27.14 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285437234.md"
datetime: "2026-05-06T20:50:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285437234.md)
  - [en](https://longbridge.com/en/news/285437234.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285437234.md)
---

# Diversified Energy | 8-K: FY2026 Q1 Revenue: USD 27.14 M

Revenue: As of FY2026 Q1, the actual value is USD 27.14 M.

EBIT: As of FY2026 Q1, the actual value is USD -250.02 M.

### Production

-   **Average Production:** 1,198 MMcfepd (200 Mboepd) for the three months ended March 31, 2026.
-   **Production Exit Rate:** 1,228 MMcfepd (205 Mboepd) as of March 31, 2026.
-   **Production Volume Mix (March 31, 2026):** 71% natural gas, 14% NGLs, and 15% oil.
-   **Production Volumes by Region (March 31, 2026):** 66% from the Central region and 34% from Appalachia.
-   **Production (Mmcfe/d) vs. Prior Periods:**
    -   March 31, 2026: 1,198.
    -   March 31, 2025: 864 (39% increase YoY).
    -   December 31, 2025: 1,198 (0% change QoQ).

### Revenue

-   **Total Commodity Revenue:** $556 million for the first quarter 2026.
-   **Total Commodity Revenue (millions) vs. Prior Periods:**
    -   March 31, 2026: $556.
    -   March 31, 2025: $329 (69% increase YoY).
    -   December 31, 2025: $429 (30% increase QoQ).
-   **Per Unit Revenues (March 31, 2026):** $4.87/Mcfe ($29.22/Boe).
-   **Other Revenue (March 31, 2026):** $0.17/Mcfe ($1.02/Boe).
-   **Proceeds from Divestitures (March 31, 2026):** $0.94/Mcfe ($5.64/Boe).

### Profitability

-   **Net Loss:** - $161 million for the first quarter 2026, including a - $398 million loss on non-cash unsettled derivatives.
-   **Net Income (Loss) (millions) vs. Prior Periods:**
    -   March 31, 2026: - $161.
    -   March 31, 2025: - $323 (50% improvement YoY).
    -   December 31, 2025: $196 (-182% change QoQ).
-   **Adjusted EBITDA:** $287 million for the first quarter 2026.
-   **Adjusted EBITDA (millions) vs. Prior Periods:**
    -   March 31, 2026: $287.
    -   March 31, 2025: $138 (108% increase YoY).
    -   December 31, 2025: $254 (13% increase QoQ).
-   **Adjusted EBITDA Margin:** 68% for the three months ended March 31, 2026.

### Operating Costs

-   **Lease Operating Expense (March 31, 2026):** $1.19/Mcfe ($7.14/Boe).
-   **Production Taxes (March 31, 2026):** $0.28/Mcfe ($1.68/Boe).
-   **Midstream Operating Expense (March 31, 2026):** $0.19/Mcfe ($1.14/Boe).
-   **Transportation Expense (March 31, 2026):** $0.26/Mcfe ($1.56/Boe).
-   **Total Operating Expense (March 31, 2026):** $1.92/Mcfe ($11.52/Boe).
-   **Employees, Administrative Costs and Professional Fees (March 31, 2026):** $0.25/Mcfe ($1.50/Boe).
-   **Adjusted Operating Cost per Unit (March 31, 2026):** $2.17/Mcfe ($13.02/Boe).

### Cash Flow

-   **Operating Cash Flow:** $169 million for the first quarter 2026.
-   **Operating Cash Flow (thousands) vs. Prior Periods:**
    -   March 31, 2026: $168,732.
    -   March 31, 2025: $84,858.
    -   December 31, 2025: $182,240.
-   **Free Cash Flow:** $110,725 thousand for the three months ended March 31, 2026.
-   **Adjusted Free Cash Flow:** $160 million for the first quarter 2026, after $11 million of transaction costs.
-   **Adjusted Free Cash Flow (millions) vs. Prior Periods:**
    -   March 31, 2026: $160.
    -   March 31, 2025: $62 (157% increase YoY).
    -   December 31, 2025: $130 (23% increase QoQ).

### Capital Expenditures

-   **Capital Expenditures:** $58 million for the first quarter 2026.
-   **Capital Expenditures (thousands) vs. Prior Periods:**
    -   March 31, 2026: $58,007.
    -   March 31, 2025: $28,031.
    -   December 31, 2025: $47,100.

### Balance Sheet and Shareholder Returns

-   **Liquidity:** $529 million of credit facility availability and unrestricted cash as of March 31, 2026.
-   **ABS Principal Reduction:** $92 million in outstanding debt under certain ABS notes was retired.
-   **Leverage Ratio:** 2.2x as of March 31, 2026.
-   **Net Debt-to-Pro Forma TTM Adjusted EBITDA:** 2.2x as of March 31, 2026.
-   **1Q26 Dividend:** $0.29 per share declared.
-   **Share Repurchases:** Diversified Energy Company repurchased 5,033,364 shares, representing approximately 7% of shares outstanding, for the three months ended March 31, 2026 and through May 6, 2026.
-   **Proceeds from Optimization Activities:** Over $100 million in proceeds recorded from optimization activities in 1Q26.
-   **Cash flow from Environmental Credits:** ~$3 million generated from environmental credits related to Coal Mine Methane (CMM) in 1Q26.

### 2026 Outlook

Diversified Energy Company reiterates its Full Year 2026 guidance, anticipating continued significant operational synergies from recent acquisitions and additional cash generation from its portfolio optimization program. The company expects to improve the cost structure of its assets while prioritizing returns and free cash flow generation. Key guidance metrics include total production of 1,170 to 1,210 MMcfepd, adjusted EBITDA of $925 to $975 million, and adjusted free cash flow of ~$430 million.

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