Diversified Energy Company and the energy price boom
Shares in this oil and gas company have risen 35% since war broke out in the Middle East. Independent analyst Alistair Strang uses his bespoke software to plot future movements.
31st March 2026 07:42
by Alistair Strang from Trends and Targets
The largest owner of oil/gas wells in the United States reportedly has a strange business model, reducing the book cost of the liability for future plugging of expired wells. This has created a situation, where the company has made more from accounting gains than its cumulative reported profits on oil and gas extraction. It always provokes a smile, when the most profitable part of a business is the accountancy department as “paper profit” is something we’ve learned to distrust.
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However, by an impressive 7p, Diversified Energy Co (LSE:DEC) has managed to create an official “higher high”, giving optimism for the future.
Currently, above 1,406p (we are looking at the UK listed stock, not the main listed one on the NYSE Diversified Energy Co (NYSE:DEC), although the sentiment is the same) should trigger movement to an initial 1,456p with our secondary, if bettered, at 1,527p and some very probable hesitation.
This is an important number due to closure above 1,527p calculating with a long-term visit to 1,943p and almost confident stutters, the price running into share behaviour in 2023.
Visually, despite their accountancy gymnastics, it looks like Diversified should be worthy of some attention. A higher high above a trend is not something we generally ignore.
If things intend to go wrong, below 1,060p should justify a raised eyebrow or ten, giving the risk of reversals to an initial 931p with our secondary, if broken, at a comfy bottom of 766p and a very, very, possible rebound. They are, after all, the company who own the most oil wells in America!
Source: Trends and Targets. Past performance is not a guide to future performance.
Lee Wild, Head of ii Editorial, owns Diversified Energy Company shares.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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