Diversified Energy Company PLC - DECPF STOCK NEWS

Diversified Energy Company PLC reported its Final Results for 2022, showcasing record net daily production of 135 MBoepd and a year-end revenue surge of 90% to $1.9 billion. The company boasted Adjusted EBITDA of $503 million with a margin of 50%. Despite a net loss of $620 million due to non-cash adjustments, reserves have increased to 830 MMboe valued at $6.1 billion, a 61% rise from the previous year. Notably, the company plans a final quarterly dividend of $0.04375 per share. Diversified is also focused on sustainability, achieving OGMP 2.0's Gold Standard for emissions reporting and reducing methane emissions intensity by 20%.

Diversified Energy Company PLC has successfully closed its acquisition of upstream assets in Texas from Tanos Energy Holdings II LLC for a net purchase price of $244 million. The assets include PDP reserves of approximately 25 MMBoe and net production of about 17 MBoepd. This acquisition enhances DEC's operational scale, with a projected increase in Free Cash Flow by 20% and Adjusted EBITDA by 19%. The company also increased its borrowing base by 50% to $375 million, improving its financial flexibility. The current asset acquisition complements DEC's existing natural gas hedging strategy, with plans for further optimization.

Diversified Energy Company PLC (LSE:DEC) reported a strong operational update for 2022, highlighting annual production of 135 Mboepd, marking a 14% increase from 2021. The company maintained robust cash margins of 50%, despite cash expenses rising to $10.41/Boe. Approximately 85% of 2023 production is hedged at an average price of $3.63/Mcf, with a 27% premium compared to year-end 2021. The firm successfully retired 200 wells in 2022 and reported significant progress in emissions reduction. A conference call will be held on March 21, 2023 to discuss the full-year results.

Diversified Energy Company has been awarded the Gold Standard Pathway by the Oil & Gas Methane Partnership 2.0 for its commitment to reducing methane emissions. This recognition reflects DIVERSIFIED's adherence to the highest OGMP 2.0 standards in measurement-based reporting. The company plans to achieve Gold Standard Compliance within three years and aims to offer Responsibly Sourced Gas (RSG) to differentiate itself in the market. This award aligns with Diversified's commitment to environmental, social, and governance (ESG) actions, enhancing transparency in its operations.

Diversified Energy Company PLC has successfully completed an ESG-aligned asset backed securitization (ABS) totaling $460 million, with $215 million net to Diversified. This is the fourth successful ABS transaction for the company in 2022, aimed at supporting its emissions reduction targets. The proceeds will be used to repay existing debt and bolster liquidity, which stands at approximately $300 million. The ABS features a fixed coupon of 7.50% and a BBB+ investment-grade rating from Fitch Ratings.

Diversified Energy Company PLC has announced the acquisition of upstream assets in Oklahoma and Texas for $240 million, lowering to a net purchase price of $210 million after adjustments. The acquisition encompasses approximately 31 MMBoe in reserves, yielding an estimated Adjusted EBITDA of $82 million. This transaction, funded through existing cash and credit facilities, is expected to enhance production by ~9 Mboepd, increasing cash flow and supporting future dividends. Post-acquisition leverage is projected at ~2.2x Net Debt to Adjusted EBITDA.

Diversified Energy Company PLC (LSE: DEC) has entered into a Purchase and Sale Agreement to acquire upstream assets in Oklahoma and Texas for $240 million, with an estimated net cost of $210 million. The transaction, fully financed from existing liquidity, is expected to close in late September 2022. This acquisition is projected to increase Diversified's Adjusted EBITDA by $82 million and enhance per-share earnings by 20%. The assets will add approximately 9 MBoepd in production and leverage operational synergies within the Central Region.

Diversified Energy Company PLC announced its acquisition of Contractor Services Inc. in Spencer, West Virginia, marking its third acquisition in 2022. This strategic move enhances Diversified's capability to retire wells, adding three derrick rigs and increasing its well-plugging capacity by 70%. The acquisition is expected to generate additional revenue streams through third-party services, supporting the company’s commitment to retire over 200 wells annually, exceeding state minimum requirements. The integration aims to streamline operations and bolster efficiency in the Appalachian energy sector.