On February 17, 2026, Millstreet Capital Management disclosed a new position in Diversified Energy Company (NYSE:DEC), acquiring 1,378,421 shares in the fourth quarter worth $19.96 million.

According to a SEC filing dated February 17, 2026, Millstreet Capital Management established a new stake in Diversified Energy Company during the fourth quarter. The fund acquired 1,378,421 shares, and the quarter-end value of the position was $19.96 million.

This new position represents 4.5% of Millstreet’s 13F reportable assets under management following the filing.

Reported holdings after the filing:

NYSE:DBD: $388.10 million (88.5% of AUM)

NYSE:CPS: $30.60 million (7.0% of AUM)

NYSE:DEC: $19.96 million (4.5% of AUM)

As of Friday, shares of Diversified Energy Company were priced at $16.20, up 19% over the past year, which is slightly outperforming the S&P 500’s roughly 15% gain in the same period.

Metric

Value

Revenue (TTM)

$1.61 billion

Net Income (TTM)

$341.1 million

Dividend Yield

7%

Price (as of Friday)

$16.20

Diversified Energy Company produces, markets, and transports natural gas, natural gas liquids, crude oil, and condensates, with primary assets in the Appalachian Basin and additional operations in Oklahoma, Texas, and Louisiana.

The firm operates as an independent owner and operator of producing wells, generating revenue through the sale of hydrocarbons and associated midstream services.

Diversified Energy Company is a leading independent energy producer focused on mature, low-decline natural gas and oil assets across the United States. It is headquartered in Alabama.

With nearly 90% of this portfolio concentrated in a single name and just three holdings overall, adding a 4.5% stake in Diversified Energy is not casual diversification. It’s a calculated move toward a cash flow profile that contrasts sharply with traditional growth holdings, and that’s significant in the current landscape.Diversified isn’t aiming for explosive production growth. Instead, it focuses on generating steady cash flow from mature assets, and the latest results support that strategy. The company reported $1.8 billion in full-year revenue, nearly $1 billion in adjusted EBITDA, and around $440 million in free cash flow, all while improving leverage and returning over $185 million to shareholders.However, the narrative is becoming more intricate. With roughly $2 billion in acquisitions and a new partnership strategy aimed at driving growth, there’s also the introduction of integration risk and a potential reliance on ongoing deal execution. Nevertheless, the bet here certainly seems to signal conviction in ongoing execution.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Diversified Energy Stock Up 12% in 2026 as New $20 Million Stake Signals Conviction was originally published by The Motley Fool