DECDiversified Energy Company
Is it safe?
Nothing alarming, nothing pristine: heavy debt (B) and typical volatility.
Highly leveraged, watch solvency. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -37% · now 23% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can DEC take a bad year?
Diversified Energy Company carries $1.69B of net debt at 7.90× EBITDA: a heavy load to carry through a bad year.
Net debt · as at FY2024 · over four years of earnings before interest, tax and depreciation, heavy
- Net debt / EBITDA
- 7.90×
Net debt / EBITDA · 0.92× a year ago · the load is going up
- Interest cover
- none
Interest cover · no operating profit to pay the interest bill from
- Annualised volatility
- 41%
Annualised volatility · roughly twice as jumpy as the market
Details›
- Total debtFY2024
- $1.69B
- Cash and short-term investments
- $6.0M
- Net debt
- $1.69B
- EBITDA, trailing twelve months
- $213M
- Operating profit, trailing twelve months
- −$43M
- Debt / equity
- 3.74×
- Total debt / EBITDA
- 7.93×
- Annualised volatilitytwo years of daily moves
- 41%
- Worst drawdown on file
- −37%
- Below its 52-week high
- 23%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.