Welcome to our dedicated page for Diversified Energy Company plc news (Ticker: dec), a resource for investors and traders seeking the latest updates and insights on Diversified Energy Company plc stock.
Diversified Energy Company plc (symbol: DEC) is an independent owner and operator of producing natural gas and oil wells. Concentrated primarily in the Appalachian Basin, the company acquires, manages, and optimizes gas and oil properties, along with associated midstream assets across several states including Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana.
Diversified Energy's core business strategy involves acquiring long-life assets, enhancing their operational and environmental performance, and eventually retiring these assets safely. This stewardship model has earned the company recognition for sustainability leadership from various ratings agencies and organizations.
Recently, the company celebrated a significant milestone by listing its ordinary shares on the New York Stock Exchange (NYSE) under the ticker symbol 'DEC', while maintaining its premium listing on the London Stock Exchange. This dual listing is expected to raise the company's profile in the US, broaden its access to high-quality equity investors, and attract more equity research analysts. The increased visibility is anticipated to enhance daily trading liquidity and open additional financing avenues, supporting the company's acquisitive growth strategy.
In terms of financial health, Diversified Energy recently executed a series of strategic transactions to bolster liquidity and reduce leverage. Notably, the company sold producing assets in Appalachia to a Special Purpose Vehicle (SPV), generating substantial proceeds and significantly reducing net debt.
The company also prides itself on its emission reduction initiatives. Diversified has achieved a Gold rating from the Oil & Gas Methane Partnership and Project Canary for its rigorous emissions monitoring. The company has reduced its Scope 1 emissions by more than 25% since 2020 and continues to deploy state-of-the-art detection equipment and protocols.
Furthermore, Diversified Energy's subsidiary, Next LVL Energy, has made strides in well retirement, having retired approximately 214 wells in 2022. The company collaborates with various states to retire orphan wells in a cost-efficient, environmentally sound manner.
The company's recent acquisition of working interests from Oaktree Capital Management in its Central Region assets is set to enhance production and cash flow. The deal also includes advantageous hedging contracts to protect against market volatility.
In summary, Diversified Energy Company plc is strategically positioned to responsibly produce energy, generate reliable free cash flow, and create shareholder value while emphasizing sustainability and operational excellence.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) has announced its management team's participation in several upcoming investor conferences and meetings. The team, including Rusty Hutson (Founder & CEO), Brad Gray (President & CFO), and Douglas Kris (SVP-IR & Corporate Communications), will attend five major events between November and December 2024.
The schedule includes the Southwest IDEAS Conference in Dallas (Nov 20), Stephens Annual Investment Conference in Nashville (Nov 21), Reuters Energy Transition North America in Houston (Dec 5), Mizuho Energy, Power & Infrastructure Conference in New York (Dec 10), and Truist Energy Event in Houston (Dec 17). Presentation materials are available on the company's investor relations website.
Diversified Energy (LSE/NYSE:DEC) reported Q3 2024 results with average production of 829 MMcfepd and September exit rate of 851 MMcfepd. The company achieved Operating Cash Flow of $102 million, Adjusted EBITDA of $115 million, and Free Cash Flow of $47 million, with a 49% EBITDA margin. Total Revenue per Unit was $3.23/Mcfe. The company retired $154 million in debt principal year-to-date, declared a $0.29 dividend, and repurchased ~1.4 million shares worth $20 million. Notable developments include a fixed-price LNG export contract, $23 million from undeveloped leasehold sales, and expansion into Coal Mine Methane generating $8-10 million EBITDA in 2024.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) has declared a third quarter dividend of 29 cents per share for the period ended September 30, 2024. The dividend will be paid on March 31, 2025, to shareholders of record as of February 28, 2025. The company offers shareholders the option to receive payments in either US dollars or sterling, with a currency election deadline of March 7, 2025. Shareholders preferring sterling payments can submit their election through a form available on the company's website.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) has announced it will release its Trading Statement for Q3 2024 on Tuesday, November 12, 2024. The company will host a conference call at 1:00 PM GMT (8:00 AM EST) to discuss the results. An audio replay will be available after the event. The Trading Statement and supplementary presentation will be published on the company's website prior to the call.
Diversified Energy Company (LSE/NYSE:DEC) has completed its acquisition of natural gas properties in eastern Texas for a gross purchase price of $69 million. The acquisition includes 70 Bcfe of PDP reserves with current net production of 21 MMcfepd. The deal was financed through a combination of 2,342,445 new shares issued to the seller and $22 million in cash from a secured bank facility. The assets are expected to generate approximately $19 million in Next Twelve Months Adjusted EBITDA, representing a purchase price multiple of ~3.5x. The newly issued shares represent 4.57% of existing share capital and will be subject to six-month regulatory restrictions.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) has announced a significant natural gas supply agreement with a major Gulf Coast LNG facility. Under the three-year contract starting November 2024, Diversified will provide approximately 40 Bcf of natural gas with fixed pricing indexed to Gulf Coast pricing. Additionally, the company has enhanced its hedging portfolio for 2025-2027, securing an average NYMEX hedge price of $3.45 per MMBtu. The agreement aims to support global energy security while helping Diversified reduce commodity price risk and enhance margins.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has announced a joint acquisition of natural gas properties in eastern Texas for $87 million. The company will acquire $68 million worth of Proved Developed Producing (PDP) assets, while a third-party development company will purchase most of the undeveloped acreage for $18 million. Diversified will retain a 5% interest in the undeveloped acreage for $1 million.
The acquisition will add 21 MMcfepd (4 MBoepd) of production and 70 Bcfe (12 MMBoe) of PDP reserves. Diversified's portion of the purchase will be funded through a combination of $35 million in new US-dollar denominated ordinary shares issued to the seller and existing liquidity. The deal is expected to close in Q4 2024.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has completed the acquisition of natural gas properties and facilities in eastern Texas from Crescent Pass Energy for a net purchase price of $101 million. The acquisition includes:
- PDP reserves of ~170 Bcfe (~28 MMBoe)
- Current net production of 38 MMcfepd (~6 Mboepd)
- Estimated NTM Adjusted EBITDA of ~$26 million
- Purchase price multiple of ~3.8x
The deal was financed through a combination of 2,249,650 new US-dollar denominated ordinary shares issued to the seller and $71 million in cash. CEO Rusty Hutson, Jr. highlighted the acquisition's attractive pricing and potential benefits from increased scale and density in the Central Region.
Diversified Energy Company PLC (LSE:DEC) reported solid interim financial results for the first half of 2024, demonstrating reliable production and robust cash flow. Key highlights include:
- Average net daily production of 746 MMcfepd (124 Mboepd)
- Net Income of $16 million, including $98 million in tax benefits
- Adjusted EBITDA of $218 million with a 50% margin
- Free Cash Flow of $121 million, excluding working capital impact
- Leverage ratio of ~2.8x, or 2.6x excluding Oaktree transaction
- Declared Q2 2024 interim dividend of $0.29 per share
The company announced $516 million in acquisitions, including the $410 million Oaktree working interests acquisition. DEC continues to focus on strategic growth, sustainable capital return, and systematic debt reduction while maintaining operational excellence.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has declared an interim dividend of 29 cents per share for the second quarter of 2024, covering the period ended June 30, 2024. Key dates include:
- Record Date: November 29, 2024
- Payment Date: December 27, 2024
- Last Date for Currency Election: December 6, 2024
The dividend will be paid in US dollars, with a sterling election option available. Shareholders wishing to receive payment in sterling must submit a currency election form by December 6, 2024. The sterling value of the dividend will be announced approximately two weeks before the payment date.
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