Diversified energy

Screening Filters

1. Market Cap: 500,000,000 – 5,000,000,000 & Category: Mid-cap

   • Purpose: To focus on companies similar in size to Diversified Energy, rather than tiny speculative firms or massive integrated oil majors.
   • Rationale:
     • Diversified Energy is a mid-cap E&P (exploration & production) / energy company.
     • Mid-caps tend to have similar capital structures, risk profiles, and growth constraints, which makes financial comparison more meaningful.
     • This range excludes very small, illiquid players where financials can be erratic, and very large names whose performance is driven by different factors (e.g., global integrated operations).

2. Sector: Energy

   • Purpose: To ensure we’re only looking at companies operating in the same broad economic space as Diversified Energy.
   • Rationale:
     • Financial performance in energy is heavily driven by commodity prices, regulation, and cyclicality.
     • Comparing Diversified Energy’s metrics to other energy names helps contextualize its margins, leverage, cash flow stability, and returns.

3. Industry: Oil & Gas

   • Purpose: To narrow the peer set to companies with similar business models and revenue drivers.
   • Rationale:
     • Within Energy, power utilities, renewables, and services businesses have very different balance sheets and earnings profiles.
     • Focusing on Oil & Gas isolates companies whose revenues and costs are most comparable to Diversified Energy (production volumes, hedging, depletion, etc.), which is crucial for assessing whether its performance is strong or weak relative to true peers.

4. Price-to-Book (P/B) Ratio: 0.3 – 3.0

   • Purpose: To filter for reasonably valued companies in terms of asset base, excluding extreme outliers.
   • Rationale:
     • Oil & gas E&P names are often evaluated against book value because of the asset-heavy nature of the business (reserves, infrastructure).
     • A P/B below ~0.3 can indicate severe distress, accounting anomalies, or markets pricing in significant asset write-downs.
     • A P/B well above 3.0 can indicate either over-optimism or a very different business mix.
     • Keeping peers in a 0.3–3.0 band makes it easier to interpret Diversified Energy’s P/B: whether it trades at a discount/premium is clearer when compared to a “normal” valuation cohort.

5. Dividend Yield (TTM): Minimum 5%

   • Purpose: To capture companies with a high-income profile similar to Diversified Energy’s dividend-focused strategy.
   • Rationale:
     • Diversified Energy is known for being an income-oriented stock, appealing to investors who prioritize yield.
     • Filtering for a minimum 5% yield identifies peers that also emphasize returning cash to shareholders.
     • This allows us to evaluate whether Diversified Energy’s payout level, coverage, and sustainability are competitive or risky relative to other high-yield oil & gas names.

Why Results Match the User’s Query

• The user is asking about the current financial analysis or performance of Diversified Energy. A core part of professional analysis is peer comparison: how does the company stack up against similar firms in the same sector, industry, size range, valuation band, and yield profile.
• These filters collectively build a peer group of mid-cap, oil & gas, dividend-oriented companies with reasonable valuations, which is exactly the context needed to judge whether Diversified Energy’s profitability, leverage, cash flow, and dividend policy are attractive or concerning.
• While the question is about one specific company, the screener helps by identifying comparable stocks, making it possible to say not just “what Diversified Energy’s numbers are,” but whether those numbers are strong or weak relative to appropriate benchmarks.