BIRMINGHAM, AL - Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC), a leading energy company, announced its upcoming inclusion in the Russell 2000® Index, a move expected to take place at the commencement of US equity markets on July 1, 2024. The preliminary list of additions was published last Friday, indicating Diversified's new status within the index.
The CEO of Diversified, Rusty Hutson, Jr., expressed enthusiasm about the inclusion, noting it as a significant company milestone that follows robust first-quarter results and a recent listing on the New York Stock Exchange. Hutson anticipates that the company's visibility in the U.S. investment community will increase, potentially broadening its investor base and enhancing stock trading liquidity.
The Russell 2000® Index, part of the annual Russell US Indexes reconstitution, captures the 4,000 largest US stocks by market capitalization. Diversified's inclusion in the Russell 3000® Index guarantees its place in the small-cap Russell 2000® Index and corresponds with its growth and value style indexes. These indexes serve as benchmarks for investment strategies and are used by investment managers and institutional investors for index funds.
FTSE Russell, which manages the indexes, conducts the reconstitution based on objective market-capitalization rankings and style attributes. With approximately $10.5 trillion in assets benchmarked against the Russell US indexes as of December 2023, their influence on investment decisions is significant.
Diversified Energy specializes in the production, transport, marketing, and retirement of natural gas and liquids. The company has been recognized for its commitment to sustainability and environmental stewardship, striving to responsibly produce energy and generate shareholder value.
The information regarding Diversified's inclusion in the Russell 2000® Index is based on a press release statement from the company.
InvestingPro Insights
As Diversified Energy Company PLC (NYSE:DEC) prepares for its inclusion in the Russell 2000® Index, the company's financial health and shareholder benefits are important factors for potential investors.
According to InvestingPro, Diversified Energy has a track record of rewarding its shareholders, having raised its dividend for 7 consecutive years and consistently maintained dividend payments for 8 consecutive years. This commitment to shareholder returns is further underscored by its significant dividend yield of 5.53%, as of mid-2024.
In terms of performance, Diversified Energy has demonstrated strong returns over the last three months, with a 20.87% price total return, reflecting investor confidence and market momentum. Despite a notable decrease in revenue growth over the last twelve months as of Q4 2023, with a -56.28% change, the company's gross profit margin remains high at 53.01%, indicating efficient operations and cost management.
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