DECPF - Diversified Energy: What To Expect From This Stock In The Second Half

• Diversified Energy reported solid results for the 1H2021, generating $151 million of hedged adjusted EBITDA and throwing off $117 million of FCF.
• However, I believe the results for the remainder of the year will blow off the 1H results, thanks to the closing of the sizable acquisitions in the newly-opened central region.
• Dividends, currently yielding 10.8%, are well covered by the 25.8% FCF yield and projected to be further raised thanks to the expanding FCF driven by margin expansion and acquisitions.
• The secularly growing stock is deeply undervalued relative to its EBITDA and FCF. This is a strong buy for both income and capital-appreciation investors.

For further details see: