Tim Robberts/DigitalVision via Getty Images Elevator Thesis Energy stocks are running hot at the moment, and I am going to dissect Diversified Energy Company ( DEC ) in this piece. The company does not pursue growth through drilling or fast production. It acquires mature oil and gas wells and aims at extracting a steady cash flow over time. For context, Occidental Petroleum ( OXY ) is the traditio...
Tim Robberts/DigitalVision via Getty Images Elevator Thesis Energy stocks are running hot at the moment, and I am going to dissect Diversified Energy Company ( DEC ) in this piece. The company does not pursue growth through drilling or fast production. It acquires mature oil and gas wells and aims at extracting a steady cash flow over time. For context, Occidental Petroleum ( OXY ) is the traditional shale model. It expands through drilling, scales production, and moves vigorously with commodity cycles. Interestingly, DEC sits on the opposite side. It is less aggressive, more defensive, and designed to generate cash rather than increase volume. Not surprisingly, capital has returned to energy with elevated oil and gas prices. This trend is also backed by geopolitical tensions around the U.S.-Iran conflict and long-term issues with supply. DEC is benefiting, although less strongly. Its gas-heavy, hedged portfolio maintains the earnings, which also restricts the reactivity of the stock to strong commodity moves. Furthermore, there has been an improvement in momentum, with the stock climbing over 35% YOY as investors shift to cash-yielding energy names. At the same time, its model is financially driven by acquisition as opposed to organic growth. Adjusted FY 25 FCF was $440 million. This favored both dividends and balance sheet strength. To say the least, the dividend is at the center of the narrative and strengthens its income focus. The contrast is found in valuation. The forward GAAP P/E of DEC is roughly 36x, which is higher than the sector median of 16x. Basically, the market is not factoring in growth. It values stability, cash yield, and minimal acceleration of earnings. It is more of a yield and stability than a capital appreciation, and therefore, it gets a Hold rating from me. DEC’s Model Works but Caps Upside The figures already reflect what the model is doing. DEC Annual Performance (DEC 2025 Earnings Presentation) For FY 25, the production was at an averag...
BYD Co. signaled to analysts that exports this year will probably beat its previous target by 15%, according to people familiar with the matter, as the world’s biggest electric vehicle maker leans on growth in overseas markets to counter a slump in domestic sales. In an analyst briefing Monday following worse-than-expected fourth-quarter earnings, BYD management told participants that the automake...
BYD Co. signaled to analysts that exports this year will probably beat its previous target by 15%, according to people familiar with the matter, as the world’s biggest electric vehicle maker leans on growth in overseas markets to counter a slump in domestic sales. In an analyst briefing Monday following worse-than-expected fourth-quarter earnings, BYD management told participants that the automaker is confident exports will reach 1.5 million vehicles in 2026, said the people, who asked not to be identified because the forecast isn’t public. That’s up from the 1.3 million target the Shenzhen-based carmaker disclosed in January. A representative for BYD didn’t immediately respond to a request for comment. BYD’s optimistic export outlook follows disappointing results, including the company’s first annual drop in profit in four years even as it toppled Tesla Inc. as the world’s top-selling EV maker. Overseas sales have been one of the few bright spots recently for BYD — they topped 1 million last year — as domestic sales stall . That’s piling pressure on its overseas ambitions to bear fruit. Citigroup Inc. estimated that BYD’s car sales in China will turn unprofitable in the first quarter, making the company rely entirely on exports to make money in its core auto business. Read More: China’s Carmakers Return to Growth in Europe With EV Sales So far, BYD’s models have proved popular abroad — a relief valve given its challenges in China. But it’s a costly undertaking, with the company expanding its production footprint in markets like Brazil, Hungary, and Southeast Asia to help bypass trade barriers. Batteries — its foundational business — is also one of BYD’s big bets . Alongside new-generation blade batteries, the carmaker has unveiled a system that can recharge a battery from 10% to 70% in five minutes, and reach close to fully charged in nine minutes. BYD is looking to roll out ultra-fast charging stations outside of China from 2027, the people said.
(Bloomberg) -- BYD Co. signaled to analysts that exports this year will probably beat its previous target by 15%, according to people familiar with the matter, as the world’s biggest electric vehicle maker leans on growth in overseas markets to counter a slump in domestic sales. In an analyst briefing Monday following worse-than-expected fourth-quarter earnings, BYD management told participants th...
(Bloomberg) -- BYD Co. signaled to analysts that exports this year will probably beat its previous target by 15%, according to people familiar with the matter, as the world’s biggest electric vehicle maker leans on growth in overseas markets to counter a slump in domestic sales. In an analyst briefing Monday following worse-than-expected fourth-quarter earnings, BYD management told participants that the automaker is confident exports will reach 1.5 million vehicles in 2026, said the people, who
Gaming is getting more expensive, and everyone is feeling the pinch. Sony (SONY) said it will raise U.S. prices for the PlayStation 5 lineup starting April 2. The standard PS5 will cost $649.99, the Digital Edition will cost $599.99, and the PS5 Pro will cost $899.99. At the same time, Microsoft ...
Gaming is getting more expensive, and everyone is feeling the pinch. Sony (SONY) said it will raise U.S. prices for the PlayStation 5 lineup starting April 2. The standard PS5 will cost $649.99, the Digital Edition will cost $599.99, and the PS5 Pro will cost $899.99. At the same time, Microsoft ...
President Donald Trump said he has "no problem" with a Russian oil tanker off the coast of Cuba delivering relief to the island, which has been brought to its knees by a U.S. oil blockade. (Image credit: Ramon Espinosa)
President Donald Trump said he has "no problem" with a Russian oil tanker off the coast of Cuba delivering relief to the island, which has been brought to its knees by a U.S. oil blockade. (Image credit: Ramon Espinosa)