Diversified Energy Plans Strategic Shift to NYSE Listing
Diversified Energy Plans to Move Primary Listing to NYSE
Diversified Will Retain UK Listing on the International Secondary Listing Category
Move Expected to Enhance Trading Liquidity, Increase Visibility with Investors, and Provide Strategic Capital Markets Benefits to Accelerate Growth
BIRMINGHAM, Ala. - Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has announced an important strategic decision to shift its primary listing to the New York Stock Exchange, while continuing to maintain a secondary listing on the London Stock Exchange. This transformative move is intended to enhance the company's trading liquidity, improve visibility among investors, and allow for strategic capital to fuel future growth.
The decision comes after careful evaluation by the company's Board of Directors, who have recognized that Diversified is primarily a US-focused business. Reporting largely in US dollars and with the majority of its operating profit emanating from US operations, the company aligns more closely with the NYSE's market, which serves as the principal growth environment for its assets.
As of mid-2025, over 65% of Diversified's shares are owned by investors residing in the United States. This reinforces the necessity of a more fitting primary listing in the US, where the executive management team, operational headquarters, and workforce are also concentrated.
The Board believes that shifting to the NYSE will bring several benefits:
Benefits of Moving to the NYSE
The decision is expected to facilitate:
- Alignment of the primary listing venue with the company’s operational footprint, leadership, and employee demographics.
- Increased overall liquidity in shares due to broader access to US capital markets.
- Enhanced visibility among US investors, including access to passive investment funds.
- Strengthening of the company's profile among high-quality equity investors.
- Simplification of share ownership for a broader employee base, improving talent acquisition and retention within the US workforce.
- Optimized opportunities for inclusion in prominent US equity indices and exchange-traded funds.
- Retention of the secondary UK listing to accommodate the non-US shareholder base.
The implementation of this change will be conducted through a UK scheme of arrangement, requiring a formal shareholder vote at a general meeting. This means that shareholders will be brought together to vote on the proposal, needing a majority in number and 75% in value of shares voted to approve the move. A shareholder circular detailing these proposals will soon be published, with the General Meeting expected to occur shortly thereafter. If shareholders vote positively, the transition to the NYSE should occur by late 2025. Following this, shares are anticipated to be traded on both the NYSE and the FCA’s Official List.
In the meantime, Diversified Energy will continue to communicate developments as the transition process unfolds.
About Diversified Energy Company PLC
Diversified Energy is a leading player in the energy sector, focusing on natural gas and liquids production, transport, marketing, and well retirement. The company employs a unique strategy that emphasizes the acquisition of long-life assets, coupled with investments aimed at improving operational and environmental performance before safe retirement of these assets. Acknowledged for its commitment to sustainability, Diversified stands out as a responsible energy producer, prioritizing reliable cash flow and shareholder value creation.
Frequently Asked Questions
What is the main reason for Diversified Energy's move to the NYSE?
The move to the NYSE is aimed at aligning the company's primary listing with its US-centric operations and enhancing trading liquidity and visibility for its shares.
Will Diversified Energy maintain a listing in the UK?
Yes, the company will retain a secondary listing on the London Stock Exchange to support its non-US shareholder base.
How will the transition affect shareholders?
Shareholders will vote on the proposed change, and upon approval, shares will start trading on the NYSE, allowing for optimized access in the US market.
What benefits does Diversified Energy expect from this move?
The company anticipates greater liquidity, better access to US investors, enhanced equity visibility, and improved positioning for US equity indices.
When is the expected timeline for the transition to the NYSE?
The transition is expected to take place in late 2025, pending shareholder approval at the upcoming General Meeting.
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