Diversified Energy slides on pricing $79 mln secondary offering

Diversified Energy

17/09/2025 12:01

** Shares of oil and gas co Diversified Energy DEC.N down 7.1% premarket to $14.32 after overnight secondary offering priced

    ** Birmingham, Alabama-based firm late Tues announced
     ~5.7 mln shares sold by entities managed by EIG Energy and FS/KKR KKR.N at $13.75, equating to about $78.6 mln of gross proceeds

    ** Offering price represents 10.8% discount to stock's last sale

    ** The Diversified Employee Benefit Trust indicated interest to purchase 750,000 of the offering's shares from the underwriters

      ** EIG received shares as consideration for DEC's acquisition of Maverick Natural Resources, which closed in Mar

** Mizuho and Raymond James are joint bookrunners for the secondary offering, joined by Citigroup

** With ~77.9 mln shares outstanding, co has ~$1.2 bln market cap

** Through Tues close, DEC shares down ~8% YTD

    ** 5 of 6 analysts rate the stock "strong buy" or "buy" and 1 has "hold" rating; median PT is $19, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))