Diversified Energy Co (DEC) — payout ratio, three ways
Fiscal year ending 2025-12-31 · sector Energy · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 24.9% | Swings with the commodity, not with the business. A payout ratio for a producer says as much about the oil price in that fiscal year as about the dividend. |
| Operating cash flow | 18.3% | Before capital spending, so it understates the payout that free cash flow shows. |
| Free cash flow | 30.4% | The figure the sector itself watches, and the one most producers set distributions against. Check whether any part of the payout is a variable or special dividend before reading a trend into it. |
Spread between highest and lowest: 12 percentage points. Same filings, different denominators.
Coverage rating 61 / 100 — Adequate. ? Peer standing 25/50Direction 30/30Stability 6/20
Free cash flow payout, last 3 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 30.4% |
| 2024-12-31 | 49.8% |
| 2023-12-31 | 77.4% |
Coverage has improved three years running, 77.4% to 30.4%.
Among the 32 energy companies here, 50% pay out a larger share on this basis.
The arithmetic
- GAAP earnings — dividends declared per share $1.14 ÷ diluted EPS $4.58
- Operating cash flow — dividends paid $85.0m ÷ operating cash flow $464.6m
- Free cash flow — dividends paid $85.0m ÷ (operating cash flow $464.6m − capex $184.6m)
Where the figures came from
- 10-K filed 2026-02-26 · accession
0001922446-26-000020
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Caveats on this company
- DPS derived from dividends paid ($1.14); no per-share tag filed
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.