Diversified Energy Announces Details of Share Buyback Program
Diversified Energy Company (LSE: DEC) (NYSE: DEC) has announced details of its Share Buyback Program following approval at the 2024 Annual General Meeting. The program allows for the repurchase of up to 4,756,842 shares with a total consideration not exceeding £52.3 million.
The buyback program will run until the earlier of June 30, 2026, or the Company's 2026 Annual General Meeting. The Board initiated this program believing the shares are trading at a substantial discount to net asset value, viewing it as an appropriate use of cash resources.
The company has engaged Peel Hunt LLP to execute the buyback on the London Stock Exchange, operating within regulatory parameters including Market Abuse Regulation and FCA Listing Rules. Repurchased shares will initially be held as treasury shares and subsequently cancelled in accordance with the Companies Act 2006.
Diversified Energy Company (LSE: DEC) (NYSE: DEC) ha annunciato i dettagli del suo Programma di Riacquisto di Azioni dopo l'approvazione avvenuta nell'Assemblea Generale Annuale del 2024. Il programma prevede il riacquisto di un massimo di 4.756.842 azioni per un importo totale non superiore a 52,3 milioni di sterline.
Il programma di riacquisto sarà valido fino alla data antecedente il 30 giugno 2026, o fino all'Assemblea Generale Annuale del 2026 della Società. Il Consiglio ha avviato questo programma ritenendo che le azioni siano scambiate a un sostanziale sconto rispetto al valore netto degli attivi, considerandolo un uso appropriato delle risorse liquide.
La società ha incaricato Peel Hunt LLP di eseguire il riacquisto sulla Borsa di Londra, operando nel rispetto dei parametri normativi, inclusi il Regolamento sul Mercato Abusivo e le Regole di Quotazione della FCA. Le azioni riacquistate saranno inizialmente detenute come azioni di tesoreria e successivamente annullate in conformità con il Companies Act 2006.
Diversified Energy Company (LSE: DEC) (NYSE: DEC) ha anunciado los detalles de su Programa de Recompra de Acciones tras la aprobación en la Junta General Anual de 2024. El programa permite la recompra de hasta 4,756,842 acciones por un importe total que no exceda 52.3 millones de libras esterlinas.
El programa de recompra se llevará a cabo hasta la fecha anterior al 30 de junio de 2026, o hasta la Junta General Anual de la Compañía de 2026. La Junta inició este programa creyendo que las acciones se están negociando a un descuento sustancial respecto al valor neto de los activos, considerándolo un uso apropiado de los recursos en efectivo.
La empresa ha contratado a Peel Hunt LLP para ejecutar la recompra en la Bolsa de Valores de Londres, operando dentro de los parámetros regulatorios, incluidos el Reglamento de Abuso de Mercado y las Normas de Cotización de la FCA. Las acciones recompradas se mantendrán inicialmente como acciones en tesorería y posteriormente se cancelarán de acuerdo con la Ley de Empresas de 2006.
다양화된 에너지 회사 (LSE: DEC) (NYSE: DEC)는 2024년 연례 총회에서 승인을 받은 주식 매입 프로그램의 세부 사항을 발표했습니다. 이 프로그램은 총 4,756,842주까지 재매입할 수 있으며, 총 금액은 5,230만 파운드를 초과하지 않습니다.
재매입 프로그램은 2026년 6월 30일 이전 또는 회사의 2026년 연례 총회까지 진행됩니다. 이사회는 주식이 순자산 가치에 비해 상당한 할인으로 거래되고 있다고 믿고 있으며, 이를 현금 자원의 적절한 사용으로 보고 이 프로그램을 시작했습니다.
회사는 Peel Hunt LLP를 고용하여 런던 증권 거래소에서 재매입을 실행하며, 시장 남용 규정 및 FCA 상장 규칙을 포함한 규제 매개변수 내에서 운영됩니다. 재매입된 주식은 처음에는 재무 주식으로 보유되며, 이후 2006년 회사법에 따라 취소됩니다.
Diversified Energy Company (LSE: DEC) (NYSE: DEC) a annoncé les détails de son Programme de Rachat d'Actions suite à l'approbation lors de l'Assemblée Générale Annuelle de 2024. Le programme permet le rachat de jusqu'à 4 756 842 actions pour un montant total ne dépassant pas 52,3 millions de livres sterling.
Le programme de rachat se déroulera jusqu'à la première des dates suivantes : 30 juin 2026 ou l'Assemblée Générale Annuelle de 2026 de la Société. Le Conseil a lancé ce programme en croyant que les actions se négocient à un rabais substantiel par rapport à la valeur nette des actifs, le considérant comme une utilisation appropriée des ressources de trésorerie.
La société a mandaté Peel Hunt LLP pour exécuter le rachat à la Bourse de Londres, opérant dans le respect des paramètres réglementaires, y compris le Règlement sur les Abus de Marché et les Règles de Cotation de la FCA. Les actions rachetées seront initialement conservées en tant qu'actions de trésorerie et seront ensuite annulées conformément à la Companies Act de 2006.
Diversified Energy Company (LSE: DEC) (NYSE: DEC) hat Einzelheiten zu seinem Aktienrückkaufprogramm bekannt gegeben, das auf der Hauptversammlung 2024 genehmigt wurde. Das Programm erlaubt den Rückkauf von bis zu 4.756.842 Aktien zu einem Gesamtbetrag von nicht mehr als 52,3 Millionen Pfund.
Das Rückkaufprogramm wird bis zum früheren von 30. Juni 2026 oder der Hauptversammlung des Unternehmens 2026 laufen. Der Vorstand hat dieses Programm initiiert, da er der Meinung ist, dass die Aktien zu einem erheblichen Abschlag auf den Nettovermögenswert gehandelt werden, und sieht es als angemessene Verwendung der liquiden Mittel an.
Das Unternehmen hat Peel Hunt LLP beauftragt, den Rückkauf an der Londoner Börse durchzuführen, wobei es innerhalb der regulatorischen Rahmenbedingungen, einschließlich der Marktmissbrauchsverordnung und der FCA-Listing-Regeln, operiert. Die zurückgekauften Aktien werden zunächst als eigene Aktien gehalten und anschließend gemäß dem Companies Act 2006 annulliert.
- Share buyback of up to £52.3 million demonstrates strong cash position
- Program indicates Board's confidence in company's undervaluation
- Reduction in share count could enhance earnings per share
- Buyback provides support for share price
- Cash spent on buyback reduces funds available for operations or growth
- Program may limit financial flexibility until June 2026
Insights
Diversified Energy's announcement of a share buyback program represents a significant capital allocation decision that will likely create shareholder value. The company plans to repurchase up to 4,756,842 shares with a total consideration not exceeding
This buyback program represents approximately
From a financial perspective, share repurchases at prices below intrinsic value mathematically increase per-share value for remaining shareholders. By reducing the outstanding share count, each remaining share represents a larger ownership stake in the company's assets and future earnings. This typically leads to EPS accretion and potential share price appreciation over time.
The program structure offers flexibility with its extended timeframe, allowing management to opportunistically repurchase shares at advantageous prices rather than committing to a rigid schedule. This disciplined approach suggests confidence in the company's financial position and cash flow generation capabilities.
While the announcement doesn't detail the company's current cash position or how the buyback fits within broader capital allocation priorities, the Board's characterization of the program as "an appropriate use of the Company's cash resources" indicates sufficient financial flexibility to execute the buyback while maintaining operational needs.
BIRMINGHAM, Ala., March 20, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Company PLC (LSE: DEC) (NYSE: DEC) announces details regarding the parameters of a Share Buyback Program (the "Program").
As previously approved at the 2024 Annual General Meeting held on May 10, 2024 (the “2024 AGM”), the Company has the authority to buy back the Company's ordinary shares of 20p each (the "Shares"). Under the Program, the Company, at its discretion and on occasion, may (subject to applicable law) purchase its Shares in open market transactions depending on market conditions, share price, trading volume, and other factors.
The Company intends to conduct the Program concurrent with the following parameters:
- The maximum number of Shares repurchased shall not exceed 4,756,842 Shares
- The total consideration of Shares repurchased under the Program shall not exceed an aggregate market value of
£52.3 million . - The Program will expire at the earlier date of the 30 June 2026 or the Company's 2026 Annual General Meeting of its Shareholders.
The purpose of the Program is to reduce the issued share capital of the Company. The Board believes that this Program will take advantage of a capital allocation opportunity as the Board is of the view that the shares are trading at a substantial discount to net asset value and is an appropriate use of the Company's cash resources.
Diversified will execute the Program on the London Stock Exchange within the limitations of the shareholder authority granted at the 2024 AGM and the 2025 AGM (if approved) and within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (in each case, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018) and Chapter 9 of the Financial Conduct Authority's Listing Rules. The Company will hold as treasury shares any Shares repurchased in accordance with the provisions of the Companies Act 2006 and will cancel the Shares thereafter. Diversified will make appropriate disclosures during the buyback period of the number of Shares that the Company has repurchased.
To facilitate the Program, Diversified has entered into an engagement with Peel Hunt LLP (“Peel Hunt”) pursuant to an engagement letter under which the Company has issued an irrevocable instruction providing Peel Hunt with the authority to repurchase Shares in the Company subject to certain agreed parameters. Purchases may continue during any closed periods of the Company, and any purchases of shares made during closed periods pursuant to the Program shall be made independently of and uninfluenced by the Company.
For further information please contact:
| Diversified Energy Company PLC | +1 973 856 2757 |
| Doug Kris | dkris@dgoc.com |
| Senior Vice President, Investor Relations & Corporate Communications | |
| FTI Consulting | dec@fticonsulting.com |
| U.S. & UK Financial Public Relations | |
About Diversified
Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique 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 reflect the Company's beliefs and expectations and are subject to risks and uncertainties. These risks and uncertainties may 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, 2024 filed with the U.S. 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.
FAQ
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