Diversified Energy Company plc DEC

Competitive advantage analysis · energy

Corporate Default
Overall moat score
49/100
Developing

About Diversified Energy Company plc

Diversified Energy Company, an independent energy company, focuses on the production, transportation, and marketing of natural gas and liquids primarily in the Appalachian and Central regions of the United States. It also operates in the Bossier and Haynesville shale formations and the Cotton Valley sandstones in East Texas and West Louisiana, the Barnett Shale in North Texas and the Mid-Continent … Full DEC analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 74.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Operating Leverage in Effect Operating leverage is evident (score 0.97), with margins expanding over time.

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 29.6th percentile with high volatility suggests weak pricing power or commoditized products.
  • Elevated Debt Risk Debt serviceability is weak (score 0.26), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
33

Where DEC ranks in Oil & Gas E&P

Diversified Energy Company plc ranks #45 of 93 scored companies in Oil & Gas E&P by moat score — the top 48%. The widest moat in the group is Texas Pacific Land Corporation (TPL) at 84/100.

Moat scores for companies ranked near DEC in Oil & Gas E&P
# Company Moat score Rating
41 Mach Natural Resources LP MNR 51/100 Moderate
42 Baytex Energy Corp BTE 50/100 Developing
43 Murphy Oil Corporation MUR 49/100 Developing
44 San Juan Basin Royalty Trust SJT 49/100 Developing
45 Diversified Energy Company plc DEC 49/100 Developing
46 Expand Energy Corporation EXEEZ 48/100 Developing
47 Expand Energy Corporation EXE 48/100 Developing
48 Expand Energy Corporation EXEEW 48/100 Developing
49 Prairie Operating Co. PROP 48/100 Developing

See every Commodities & Mining company ranked by moat score →

How DEC scores on the Corporate Default defenses

Pricing Power

Score 33 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 59 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 41 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 63 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 29 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 70 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DEC's moat

What is Diversified Energy Company plc's moat score?

Diversified Energy Company plc (DEC) scores 48 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #45 of 93 scored companies in Oil & Gas E&P, the top 48%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 92 companies in Oil & Gas E&P. Its strongest defense is Scale & Market Position (70/100) and its weakest is Resilience (29/100).

How does Diversified Energy Company plc compare with other Oil & Gas E&P companies?

Diversified Energy Company plc ranks #45 of 93 scored companies in Oil & Gas E&P by moat score. The widest moat in Oil & Gas E&P is Texas Pacific Land Corporation (TPL) at 84/100. The companies ranked closest are San Juan Basin Royalty Trust (SJT) at 49 just above it and Expand Energy Corporation (EXEEZ) at 48 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 92 companies in Oil & Gas E&P. The defenses are then weighted to produce the overall score out of 100.

Why is Diversified Energy Company plc scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Diversified Energy Company plc?

The Corporate Default template measures 6 defenses, and DEC scores: Pricing Power (33), Cost Advantage (59), Customer Stickiness (41), Capital Efficiency (63), Resilience (29), Scale & Market Position (70). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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