Diversified Announces Natural Gas Supply Contract with Major Gulf Coast LNG Facility
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 (LSE:DEC)(NYSE:DEC) ha annunciato un importante accordo per la fornitura di gas naturale con una grande struttura LNG della Costa del Golfo. Sotto il contratto triennale che inizierà a novembre 2024, Diversified fornirà circa 40 Bcf di gas naturale con un prezzo fisso indicizzato ai prezzi della Costa del Golfo. Inoltre, l'azienda ha migliorato il suo portafoglio di copertura per il periodo 2025-2027, assicurando un prezzo medio di copertura NYMEX di $3.45 per MMBtu. L'accordo mira a sostenere la sicurezza energetica globale aiutando nel contempo Diversified a ridurre il rischio di prezzo delle materie prime e migliorare i margini.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) ha anunciado un importante acuerdo de suministro de gas natural con una importante instalación de GNL en la Costa del Golfo. Bajo el contrato de tres años que comenzará en noviembre de 2024, Diversified proporcionará aproximadamente 40 Bcf de gas natural con precios fijos indexados a los precios de la Costa del Golfo. Además, la empresa ha mejorado su cartera de cobertura para 2025-2027, asegurando un precio promedio de cobertura NYMEX de $3.45 por MMBtu. El acuerdo tiene como objetivo apoyar la seguridad energética global y, al mismo tiempo, ayudar a Diversified a reducir el riesgo de precios de los commodities y mejorar los márgenes.
다양한 에너지 회사 (LSE:DEC)(NYSE:DEC)가 주요 걸프코스트 LNG 시설과 중요한 천연가스 공급 계약을 발표했습니다. 2024년 11월에 시작되는 3년 계약 아래에서, 다양한 에너지는 약 40 Bcf의 천연가스를 걸프코스트 가격에 고정된 가격으로 제공합니다. 추가로, 회사는 2025-2027년을 위한 헤징 포트폴리오를 강화하여 평균 NYMEX 헤지 가격 $3.45 per MMBtu를 확보했습니다. 이 계약은 글로벌 에너지 안보를 지원하고 다양한 에너지가 원자재 가격 위험을 줄이고 이익을 향상시키는 데 도움을 줄 것입니다.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) a annoncé un important accord d'approvisionnement en gaz naturel avec une grande installation de GNL sur la côte du Golfe. Dans le cadre de ce contrat de trois ans, qui débutera en novembre 2024, Diversified fournira environ 40 Bcf de gaz naturel avec un prix fixe indexé sur les prix de la côte du Golfe. De plus, l'entreprise a amélioré son portefeuille de couverture pour 2025-2027, garantissant un prix moyen de couverture NYMEX de $3.45 par MMBtu. Cet accord vise à soutenir la sécurité énergétique mondiale tout en aidant Diversified à réduire le risque de prix des matières premières et à améliorer ses marges.
Diversified Energy Company (LSE:DEC)(NYSE:DEC) hat eine bedeutende Vereinbarung über die Lieferung von Erdgas mit einer großen LNG-Anlage an der Golfküste bekannt gegeben. Im Rahmen des dreijährigen Vertrags, der im November 2024 beginnt, wird Diversified etwa 40 Bcf Erdgas zu einem Festpreis liefern, der an die Preise der Golfküste indexiert ist. Darüber hinaus hat das Unternehmen sein Hedging-Portfolio für 2025-2027 verbessert und einen durchschnittlichen NYMEX-Hedging-Preis von $3.45 pro MMBtu gesichert. Die Vereinbarung zielt darauf ab, die globale Energiesicherheit zu unterstützen und gleichzeitig Diversified zu helfen, das Risiko von Rohstoffpreisen zu reduzieren und die Margen zu erhöhen.
- Secured three-year natural gas supply contract for 40 Bcf
- Fixed pricing structure reduces commodity price risk
- Established hedging position at $3.45/MMBtu for 2025-2027
- None.
Insights
This LNG supply agreement marks a strategic shift for Diversified Energy, securing a 40 Bcf fixed-price contract over three years starting November 2024. The deal provides significant revenue visibility and reduces exposure to commodity price volatility. The company's hedging strategy, locking in
The agreement's timing coincides with growing global LNG demand, particularly from Europe and Asia. Gulf Coast export facilities are operating at near-capacity, making reliable supply contracts increasingly valuable. This positions Diversified to capture premium pricing in the international market while maintaining predictable cash flows. The deal structure, indexed to Gulf Coast pricing, should provide better margins compared to standard Henry Hub exposure.
Represents an Additional Option to Reduce Commodity Price Risk and Enhance Margins
Continuing to Add to 2025-2027 Natural Gas Hedges Advantageously
BIRMINGHAM, AL / ACCESSWIRE / October 23, 2024 / Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) ("Diversified" or the "Company") is pleased to announce the execution of a supply agreement with a major Gulf Coast LNG facility to provide natural gas to export. Under the terms of the agreement, Diversified will provide approximately 40 Bcf of natural gas under a fixed pricing construct indexed to Gulf Coast pricing for a period of three years, beginning in November 2024.
Fueled by a vision to supply clean American energy to the world, this significant contract collaboration encompasses the commitment to ensure energy security for global trading partners who are facing supply disruptions, geopolitical tensions, rising regional demands, and changing consumption patterns.
Additionally, the Company has been able to strategically take advantage of the recent strength of the natural gas price curve to add to its multiple-year hedge portfolio in 2025 through 2027, with an average NYMEX hedge price of approximately
Commenting on the Agreement & Hedging Program, CEO Rusty Hutson, Jr. said:
"This supply agreement to a Gulf Coast LNG export facility is a great example of the market's recognition of Diversified's reliable natural gas production and operational efficiency while providing another lever for the Company to enhance margins and deliver consistent cash flows. In line with the Company's strategy to reduce commodity price risk, we believe this agreement, along with tactically adding to our 2025-2027 hedge position during the recent natural gas price strength, will help us to provide consistent, robust cash margins. The agreement not only reflects the critical need and strong global demand for natural gas but also the importance natural gas plays in powering global economies for decades to come. We look forward to advancing our relationships with Gulf Coast LNG export facilities that shares our commitment to building a future of energy abundance, affordability, and security."
For further information, please contact:
Diversified Energy Company PLC | +1 973 856 2757 |
About Diversified Energy Company PLC
Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
Forward-Looking Statements
This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). These forward-looking statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve", "opportunity" and words of similar meaning, reflect the Company's beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, including the risk factors described in the "Risk Factors" section in the Company's Annual Report and Form 20-F for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of their date and neither the Company nor any of its directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. As a result, you are cautioned not to place undue reliance on such forward-looking statements.
SOURCE: Diversified Energy Company PLC
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