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.
Overview of Diversified Energy Company PLC
Diversified Energy Company PLC (DEC) is a publicly traded energy company specializing in the acquisition, operation, and optimization of mature natural gas and oil assets. Headquartered in Birmingham, Alabama, DEC's operations are concentrated in the Appalachian Basin and the Central United States, spanning states such as West Virginia, Pennsylvania, Ohio, Texas, and Louisiana. The company is listed on both the London Stock Exchange (LSE: DEC) and the New York Stock Exchange (NYSE: DEC).
Core Business Model
DEC's business model revolves around acquiring long-life, low-decline producing assets and leveraging its proprietary Smarter Asset Management approach to enhance operational efficiency and maximize cash flow. By focusing on mature assets with stable production profiles, the company minimizes capital intensity while generating consistent free cash flow. DEC also operates associated midstream infrastructure, enabling cost-efficient transport and marketing of its production.
Geographic Footprint and Asset Portfolio
The company's diversified asset base includes thousands of producing wells and extensive midstream networks. Its Appalachian operations are a cornerstone of its portfolio, benefiting from proximity to high-demand markets and established infrastructure. Recent expansions into Texas and Louisiana have bolstered its Central region footprint, providing additional scale and opportunities for operational synergies.
Differentiated Strategies
- Smarter Asset Management: DEC employs data-driven techniques to optimize production, reduce costs, and extend the economic life of its wells.
- Environmental Stewardship: The company is committed to responsible asset retirement and has developed expertise in well plugging and reclamation. It also generates revenue through the capture and sale of Coal Mine Methane (CMM), contributing to environmental sustainability.
- Hedging and Financial Discipline: DEC uses an extensive hedging program to mitigate commodity price volatility, ensuring stable cash flows and protecting shareholder value.
Competitive Position
Diversified Energy operates in a competitive landscape alongside major oil and gas producers and smaller independent operators. Its focus on mature, low-decline assets and operational efficiency sets it apart. The company's integrated midstream capabilities and geographic diversification further enhance its resilience and market access. Additionally, its emphasis on environmental performance positions it favorably in an industry increasingly scrutinized for sustainability practices.
Challenges and Opportunities
While DEC's reliance on acquisitions raises questions about long-term organic growth, its disciplined approach to asset integration and cost management mitigates these concerns. The company's expansion into adjacent revenue streams, such as CMM credits and LNG supply agreements, highlights its adaptability and commitment to value creation.
Conclusion
Diversified Energy Company PLC exemplifies a strategic approach to natural gas and oil production, focusing on operational excellence, environmental responsibility, and financial stability. Its unique business model and diversified asset base make it a significant player in the energy sector, offering reliable cash flow and sustainable growth opportunities.
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.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has announced the timing of its 2024 Interim Results for the six months ended June 30, 2024. The company will publish its Interim Results on Thursday, August 15, 2024, followed by a conference call at 2:00 PM BST (9:00 AM EDT) to discuss the results. An audio replay will be made available shortly after the event.
Investors can access the conference call via toll-free numbers provided for the US and UK. Additionally, Diversified Energy will publish its 2024 Interim Report and a supplementary 2024 Interim Results Presentation on its website prior to the event. These materials will be available at the company's investor relations webpage.
Diversified Energy Company PLC (LSE:DEC) (NYSE:DEC) has announced its participation in several upcoming investor engagement events. The company's management team, including CFO Brad Gray and SVP of Investor Relations & Corporate Communications Douglas Kris, will attend investor meetings organized by Mizuho in Toronto on July 17, the Truist Energy Event in Denver on August 19, and the EnerCom Conference in Denver on August 20-21. Additionally, Douglas Kris and Senior Manager of Investor Relations Wren Smith will attend the Midwest IDEAS Conference in Chicago on August 29. Materials related to these presentations are available on the Company's website.
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