Diversified Energy Company PLC (NYSE:DEC) saw its stock decline 6.3% in premarket trading Wednesday following the announcement of a secondary share sale by major shareholders.
The offering, priced at $13.75 per share, involves 5.7 million shares sold entirely by funds managed by EIG, FS/EIG Advisor, LLC, and entities overseen by FS/KKR Advisor, LLC. Diversified Energy will not receive any proceeds, as the sale consists of existing shares rather than newly issued stock.
Underwriters have also been granted a 30-day option to purchase up to an additional 857,002 shares at the same price. The secondary offering is expected to close on September 18, 2025, subject to customary conditions.
In a related development, the Diversified Employee Benefit Trust has expressed interest in buying 750,000 shares from the underwriters at the public offering price, totaling $10,312,500. This transaction is considered a related-party deal because the original sellers include entities managed by an affiliate of EIG, linked to Diversified director Randy Wade.
The shares were originally issued as part of Diversified’s acquisition of Maverick Natural Resources, LLC, which completed on March 14, 2025.
Mizuho and Raymond James are serving as joint book-running managers and representatives of the underwriters, with Citigroup also acting as a joint book-running manager for the offering.
Diversified Energy Company stock price
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