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 (LSE:DEC)(NYSE:DEC) has announced a definitive agreement to acquire Maverick Natural Resources for approximately $1.275 billion. The acquisition combines complementary asset packages and is expected to result in a 95% increase in revenue and a 55% increase in free cash flow.
The combined company will have an enterprise value of approximately $3.8 billion, operating across five distinct regions with a combined production of ~1,200 MMcfe/d. Maverick brings significant liquids exposure, with its production mix being 55% liquids and 45% natural gas, complementing Diversified's 85% natural gas and 15% liquids mix.
The transaction will be funded through the assumption of approximately $700 million of Maverick debt, issuance of 21.2 million new Diversified Ordinary Shares valued at approximately $345 million, and approximately $207 million in cash. Upon completion, EIG will own approximately 20% of outstanding Ordinary Shares. The acquisition is expected to close during the first half of 2025.
Pioneer Energy and Diversified Energy (DEC) have secured a $5 million grant from the U.S. Department of Energy and EPA to adapt Pioneer's Emission Control Treater™ (ECT) technology for marginal conventional wells. The technology will be demonstrated at DEC's East Texas locations for 12 months.
The ECT technology offers superior separation compared to existing phase separators, increasing crude yield by 5-10% while eliminating routine flaring and atmospheric storage tanks. The system features cloud-connected automation for remote monitoring and control, reducing operational costs and maintenance requirements.
The grant will fund the development of mini-ECT units as cost-effective replacements for existing infrastructure at marginal well sites. The demonstration will take place in the Cotton Valley Basin, aiming to extend well economic lifetime while eliminating methane emissions and flaring.
Pioneer Energy has secured $27 million in DOE funding through four distinct awards. The primary focus is on advancing their Emission Control Treater™ (ECT), a revolutionary zero-emissions well pad production technology that can boost crude yield by 5-10%. Three awards totaling $21 million will support ECT development across different applications, including a $10MM commercial-scale project, a $6MM sour crude processing initiative, and a $5MM marginal wells program.
The ECT technology eliminates routine flaring, removes the need for atmospheric storage tanks, and improves separation efficiency. It features cloud-connected automation for remote monitoring and control, reducing operational costs. The fourth grant, worth $6MM, partners with Emvolon to develop a flare gas to methanol system. All projects will undergo extended field demonstrations, with emissions reduction validation by Colorado School of Mines and Montrose Environmental Group.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) has announced the acquisition of natural gas properties and facilities in Virginia, West Virginia, and Alabama from Summit Natural Resources for approximately $45 million. The acquisition includes current net production of ~12 MMcfepd, PDP Reserves of 65 Bcfe with PV-10 of ~$55 million, and is expected to generate ~$12 million in estimated 2025 Adj. EBITDA.
The strategic acquisition encompasses 300 net producing wells in Appalachia (~60% of production) and 265 net producing Coal Mine Methane wells in Alabama (~40% of production). The assets overlap with existing operations, providing operational synergies and opportunities to enhance cash margins. The deal includes strategic midstream pipeline assets that enable routing of production to premium sales points.
The transaction, expected to close in Q1 2025, will be fully funded through cash on hand and current liquidity. The acquisition expands DEC's Coal Mine Methane revenue generation potential and is expected to benefit from the company's Smarter Asset Management programs.
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.
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